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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. Who we Hired in 2003
    • 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
  • 6. RCM’s Recruiting Process
    • Workflow Systems
    • Assign Recruiter(s)
    • Qualify Resumes
    • Source Candidates
    • Create Candidate Profile
    • Check References
    • Conduct Technical Interview
    • Complete Phone Screen
    • Conduct Initial Interview (face to face)
    • Submit Candidate
      • Client
      • A/E
    Engagement Initiation Process National Database & Tools Repeatable Processes Understanding the Total Requirement Ensuring Success 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 result of 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. Top 25 Most Active Employers – CA Number of Job Postings – Oct. 2003
    • 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
  • 16. Employment Trends 21 st Century
  • 17. Hot Careers for the 21 st 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. (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. Salaries for IT Professionals - CA
  • 24.
    • 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.
    Salaries for IT Professionals - CA
  • 25.
    • 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.
    Salaries for IT Professionals - CA
  • 26.
    • 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.
    Salaries for IT Professionals - CA