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Inland Empire CIO Roundtable “Career Trends in IT”

Inland Empire CIO Roundtable “Career Trends in IT”. Opening Presentation by: John Pringle Sr. VP, Western Region RCM Technologies (USA), Inc. The Source of Smart Solutions. Who is RCM Technologies ?.

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Inland Empire CIO Roundtable “Career Trends in IT”

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  1. Inland Empire CIO Roundtable “Career Trends in IT” Opening Presentation by: John Pringle Sr. VP, Western Region RCM Technologies (USA), Inc. The Source of Smart Solutions

  2. Who is RCM Technologies ? RCM Technologies (USA), Inc. is a leading provider of information technology and engineering solutions to the commercial and government sectors for more than 30 years. RCM's diverse service offerings enable its customers to adapt and deploy advanced technologies that result in achieving business success for industry and government. The Source of Smart Solutions

  3. Who is RCM Technologies ? • Founded in 1971 - a repeated record of growth and profitability • 2003 Annual Sales Volume: $207,000,000 • Geographic Presence: 37 branches in 12 states • Smart Shore Facilities: Canada, Poland and India (multiple) • Number of employees: Billable (IT & Engineering) 1,300 - Full Time Staff - 240 • Government Security Clearance: Top Secret – Orange Branch • Publicly-traded on NASDAQ as RCMT

  4. Who is RCM Technologies ? IT Service Offerings • IT Strategy and Assessments • Custom Application Development • IT Facility Maintenance • Quality & Compliance Services • Oracle Application Services • QAD Sales & Implementation • Supply Chain Optimization • Smart Shore • Professional IT Staffing The Source of Smart Solutions

  5. Application Development Project Managers – 14 Business Analyst - 23 Developers – 38 (ATG, C/C++, Legacy, VB, .net, Lotus notes, ) System Integration Oracle - 8 QAD - 4 Data/Database Administration DBA - 10 (Oracle, Access, SQL) Data Warehouse – 6 Quality Assurance (QA) & Testing QA Managers - 6 Automated Testers - 28 Configuration Mgmnt – 5 -2 Networking & E-Commerce Network Engineer- 250(1) Security System Security - 5 Technical Services Document Mgmnt – 10 Help Desk - 14 Technical Support – 22 PC Technicians 12 System Admin - 9 EDI – 4 Subcontractors 135(1) Internal Staff Senior/Branch Mgmnt - 2 Account Executives - 19 Recruiters - 17 Who we Hired in 2003

  6. RCM’s Recruiting Process Ensuring Success Engagement Initiation Process Understanding the Total Requirement • Submit Candidate • Client • A/E Repeatable Processes • Check References • Conduct Technical Interview • Complete Phone Screen • Conduct Initial Interview (face to face) National Database & Tools • Workflow Systems • Assign Recruiter(s) • Qualify Resumes • Source Candidates • Create Candidate Profile Foundation for Success

  7. Employment Trends Post .com Bomb

  8. Percentage of IT Operating Budget Devoted to Internal Staff • Percentage of IT Operating Budget Devoted to Internal Staff • 2001 = 33% • 2002 = 32% • 2003 = 23% • 2004 = 22% (projected) • Percentage of Internal Staff Budget Devoted to Software Development • 2001 = 21% • 2002 = 17% • 2003 = 16% • Percentage of External Service Providers (ESP) Operating Budget Devoted to Software Development • 2001 = 25% • 2002 = 10% • 2003 = 11% • Percentage of ESP Operating Budget Devoted to Hardware and Software Support • 2001 = 18% • 2002 = 21% • 2003 = 43% Gartner’s Annual Staffing and Spending Survey, October 2003 • Gartner’s annual IT staffing survey

  9. Employment Trends Past Three Years • 2001 • The IT workforce, estimated at 10.4 million decreased by 5%. Companies hired 2.1 million IT workers, dismissed 2.6 million • 2002 • Productivity gains were the biggest in over half a century (BLS) • Total compensation declined for managers by 8%, staff members by 11% • Stock options were not perceived as key incentives, most workers reported their options are worthless • 2003 • IT unemployment 5.6%, tenth of a point higher US market (BLS) • Primarily driven by cost cutting • Increase productivity ( tools & technologies) • Off-shore • Expected retention for IT workers dropped from 33 months to 25 months • Since peaking at 1.35 million in March 2001, the computer-system design and related service category has lost 245,000 jobs - an 18.2% decline. Lowest level since April 1999 ( BLS). • No significant increases in hiring as result of economic resurgences.

  10. Current Employment Trends

  11. 2004 will be a Transitional Year “Although confluence of positive economic factors combined with prospects for a rebound in technology spending have elevated belief, momentum and expectation toward a recovery, we still have not seen compelling and pervasive evidence of significant new spending across a number of relevant sectors….” Leon Kopyt, Chairman and CEO of RCM, statement to financial investors as resultof 4th quarter and year ended December 31, 2003.  

  12. Employment Trends 2004 • Continued downward pressure on salaries • 2003 - 21% high-tech companies freeze salaries • 2004 - 10% are projecting to freeze salaries • Now how about some good news • IT spending will be up 2.2% (Goldman Sach’s ) • Long term spending 5.8% (Goldman Sach’s ) • Hiring managers plan to add new jobs (CareerBuilder) • 32% will recruit to expand operations • 52% will be replacing workers who left voluntarily or were laid off

  13. Employment Trends 2004 • Finding the right people will become more challenging (CareerBuilder) • 56% of hiring managers are currently filling in 30 days or less. • 36% of hiring managers report that they are starting to experience trouble zeroing in on the right candidate. • Online traffic increased by 117%, total posting increase by 33% (January 2003-2004). • Managers are starting to experience that when offers are extended, candidates are no longer available. • Candidates are more selective with offers they consider • Expect higher turnover • Underpaid • Unchallenged • Unhappy

  14. What are the skill sets employers are looking for? • IT Security • Windows Administration • Cisco Network Administration • Visual Basic Developers • .Net Developers • Check Point Firewall Administration • Active Server Page (ASP) Developers • Oracle Database Management • Linux Administration • Java Developers • XML Developers • C++ Developers • ActiveX Developers • C# Development • Wireless Networking

  15. Kaiser Permanente Tenet Healthcare Raytheon Stanford Medical Boeing Cingular Sprint Northrop Grumman Scripps Sutter Health Washington Mutual E-Bay Deloitte & Touche Lockheed Martin US Navy Sun Microsystems AT&T US Air force Target Corporation Verizon Intuit Inc. Yum! Brands Mervyn’s Pfizer Warner Bros. 2091 2986 1982 887 775 753 642 626 617 538 521 503 369 367 358 333 318 297 289 284 272 220 207 205 189 Top 25 Most Active Employers – CANumber of Job Postings – Oct. 2003

  16. Employment Trends 21st Century

  17. Hot Careers for the 21st Century • IT Security • Network Experts • Information Architect • Web Site/Database Integrator • Web Developers • Information Broker/Infomediary • E-Commerce CFO • Internet CEO • Vice-President, E-Commerce

  18. Offshore – What should you do about it? • Get on the bandwagon • Must add value - understand the business • Architect positions are less likely to be moved offshore • Must be culturally aware with the ability to handle logistics of communication (early morning or late night conferences) • Must be flexible • Must be top notch, great communicator, ability to move around in the business world, a leader, willing to work with offshore teams • Look at the positive • Forces you to stay current with technology • Avoid software maintenance or grunt work • Highly critical, complex design will remain in-house • Bottom line - must be perceived as a strategic player

  19. Long Term Trends • IT professional must actively manage their career. • Today's environment mandates employees continue education throughout their lifetime. • 10 of the fastest jobs are in the computer field. • Employers will increase the use of contingent workers. • Telecommuting will increase in popularity with employers and employees. • Students today can anticipate 8-10 careers in their lifetime • Technology advances and population requirements will continue to drive career trends

  20. General Tips for Managing IT Careers • Gain industry-specific knowledge, understand the business. • Keep up with broader technology world • Expect to continue training • Seek focused training • Seek on-the-job training – for in-demand area • Get into management, seek higher management positions • Understand your options as a free agent • Network, Network, Network • The usual • Technical user groups • Technology societies • Roundtables • Non-technical groups • Informational interviews • Be positive, not defensive

  21. Appendix

  22. Salaries for IT Professionals - CA • (a) Add 5-7% for Active Server Page development skills, 10% for C++ development skills, 5-7% for C# development skills, 5-7% for Java development skills and 5%for Visual Basic development skills. • SOURCE: 2004 Salary Guide by Robert Half Technology • NOTE: Salary ranges provided reflect averages for Los Angeles, San Francisco, Sacramento, San Jose and San Diego.

  23. Salaries for IT Professionals - CA • (b) Add 5-7% for IBM DB2 database skills, 8-10% for Oracle database skills and 5-7 % for SQL Server database skills. • SOURCE: 2004 Salary Guide by Robert Half Technology • NOTE: Salary ranges provided reflect averages for Los Angeles, San Francisco, Sacramento, San Jose and San Diego.

  24. Salaries for IT Professionals - CA • Add 5-7% for Active Server Page development skills, 5% for ActiveX development skills, 5% for ColdFusion development skills, 5-7% for Java development skills, 8-10% for .NET administration skills and 5-7% for XML development skills. • Add 10-15% for Cisco Certified Internetwork Expert certification, 5-7% for Linux administration skills, 5-7% for UNIX administration skills and 5% for Windows 2000/XP administration skills. • SOURCE: 2004 Salary Guide by Robert Half Technology • NOTE: Salary ranges provided reflect averages for Los Angeles, San Francisco, Sacramento, San Jose and San Diego.

  25. Salaries for IT Professionals - CA • Add 10-15% for Cisco Certified Internetwork Expert certification and 5-7% for UNIX administration skills. • Add 7-10% for Active Server Page development skills, 5% for C++ development skills, 5-7% for C# developments skills, 5-7% for Java development skills and 5-7% for Visual Basic development skills. • SOURCE: 2004 Salary Guide by Robert Half Technology • NOTE: Salary ranges provided reflect averages for Los Angeles, San Francisco, Sacramento, San Jose and San Diego.

  26. Salaries for IT Professionals - CA • Add 10-15% for Cisco Certified Internetwork Expert certification, 5% for Linux administration skills, 8-10% for .NET administration skills, 5-7% for UNIX administration skills and 5% for Windows 2000/XP administration skills. • SOURCE: 2004 Salary Guide by Robert Half Technology • NOTE: Salary ranges provided reflect averages for Los Angeles, San Francisco, Sacramento, San Jose and San Diego.

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