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CLICK HERE FOR SPEAKER'S PPT PRESENTATION

  1. 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. 2. Who is RCM Technologies ? <ul><li>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. </li></ul><ul><li>RCM's diverse service offerings enable its customers to adapt and deploy advanced technologies that result in achieving business success for industry and government. </li></ul><ul><li>The Source of Smart Solutions </li></ul>
  3. 3. Who is RCM Technologies ? <ul><li>Founded in 1971 - a repeated record of growth and profitability </li></ul><ul><li>2003 Annual Sales Volume: $207,000,000 </li></ul><ul><li>Geographic Presence: 37 branches in 12 states </li></ul><ul><li>Smart Shore Facilities: Canada, Poland and India (multiple) </li></ul><ul><li>Number of employees: Billable (IT & Engineering) 1,300 - Full Time Staff - 240 </li></ul><ul><li>Government Security Clearance: Top Secret – Orange Branch </li></ul><ul><li>Publicly-traded on NASDAQ as RCMT </li></ul>
  4. 4. Who is RCM Technologies ? <ul><li>IT Service Offerings </li></ul><ul><li>IT Strategy and Assessments </li></ul><ul><li>Custom Application Development </li></ul><ul><li>IT Facility Maintenance </li></ul><ul><li>Quality & Compliance Services </li></ul><ul><li>Oracle Application Services </li></ul><ul><li>QAD Sales & Implementation </li></ul><ul><li>Supply Chain Optimization </li></ul><ul><li>Smart Shore </li></ul><ul><li>Professional IT Staffing </li></ul><ul><li>The Source of Smart Solutions </li></ul>
  5. 5. Who we Hired in 2003 <ul><li>Application Development </li></ul><ul><ul><li>Project Managers – 14 </li></ul></ul><ul><ul><li>Business Analyst - 23 </li></ul></ul><ul><ul><li>Developers – 38 </li></ul></ul><ul><ul><li>(ATG, C/C++, Legacy, VB, .net, Lotus notes, ) </li></ul></ul><ul><li>System Integration </li></ul><ul><ul><li>Oracle - 8 </li></ul></ul><ul><ul><li>QAD - 4 </li></ul></ul><ul><li>Data/Database Administration </li></ul><ul><ul><li>DBA - 10 (Oracle, Access, SQL) </li></ul></ul><ul><ul><li>Data Warehouse – 6 </li></ul></ul><ul><li>Quality Assurance (QA) & Testing </li></ul><ul><ul><li>QA Managers - 6 </li></ul></ul><ul><ul><li>Automated Testers - 28 </li></ul></ul><ul><ul><li>Configuration Mgmnt – 5 </li></ul></ul><ul><li>-2 </li></ul><ul><li>Networking & E-Commerce </li></ul><ul><ul><li>Network Engineer- 250 (1) </li></ul></ul><ul><li>Security </li></ul><ul><ul><li>System Security - 5 </li></ul></ul><ul><li>Technical Services </li></ul><ul><ul><li>Document Mgmnt – 10 </li></ul></ul><ul><ul><li>Help Desk - 14 </li></ul></ul><ul><ul><li>Technical Support – 22 </li></ul></ul><ul><ul><li>PC Technicians 12 </li></ul></ul><ul><ul><li>System Admin - 9 </li></ul></ul><ul><ul><li>EDI – 4 </li></ul></ul><ul><li>Subcontractors 135 (1) </li></ul><ul><li>Internal Staff </li></ul><ul><ul><li>Senior/Branch Mgmnt - 2 </li></ul></ul><ul><ul><li>Account Executives - 19 </li></ul></ul><ul><ul><li>Recruiters - 17 </li></ul></ul>
  6. 6. RCM’s Recruiting Process <ul><li>Workflow Systems </li></ul><ul><li>Assign Recruiter(s) </li></ul><ul><li>Qualify Resumes </li></ul><ul><li>Source Candidates </li></ul><ul><li>Create Candidate Profile </li></ul><ul><li>Check References </li></ul><ul><li>Conduct Technical Interview </li></ul><ul><li>Complete Phone Screen </li></ul><ul><li>Conduct Initial Interview (face to face) </li></ul><ul><li>Submit Candidate </li></ul><ul><ul><li>Client </li></ul></ul><ul><ul><li>A/E </li></ul></ul>Engagement Initiation Process National Database & Tools Repeatable Processes Understanding the Total Requirement Ensuring Success Foundation for Success
  7. 7. Employment Trends Post .com Bomb
  8. 8. Percentage of IT Operating Budget Devoted to Internal Staff <ul><li>Percentage of IT Operating Budget Devoted to Internal Staff </li></ul><ul><ul><li>2001 = 33% </li></ul></ul><ul><ul><li>2002 = 32% </li></ul></ul><ul><ul><li>2003 = 23% </li></ul></ul><ul><ul><li>2004 = 22% (projected) </li></ul></ul><ul><li>Percentage of Internal Staff Budget Devoted to Software Development </li></ul><ul><ul><li>2001 = 21% </li></ul></ul><ul><ul><li>2002 = 17% </li></ul></ul><ul><ul><li>2003 = 16% </li></ul></ul><ul><li>Percentage of External Service Providers (ESP) Operating Budget Devoted to Software Development </li></ul><ul><ul><li>2001 = 25% </li></ul></ul><ul><ul><li>2002 = 10% </li></ul></ul><ul><ul><li>2003 = 11% </li></ul></ul><ul><li>Percentage of ESP Operating Budget Devoted to Hardware and Software Support </li></ul><ul><ul><li>2001 = 18% </li></ul></ul><ul><ul><li>2002 = 21% </li></ul></ul><ul><ul><li>2003 = 43% </li></ul></ul><ul><li>Gartner’s Annual Staffing and Spending Survey, October 2003 </li></ul><ul><li>Gartner’s annual IT staffing survey </li></ul>
  9. 9. Employment Trends Past Three Years <ul><li>2001 </li></ul><ul><ul><li>The IT workforce, estimated at 10.4 million decreased by 5%. Companies hired 2.1 million IT workers, dismissed 2.6 million </li></ul></ul><ul><li>2002 </li></ul><ul><ul><li>Productivity gains were the biggest in over half a century (BLS) </li></ul></ul><ul><ul><li>Total compensation declined for managers by 8%, staff members by 11% </li></ul></ul><ul><ul><li>Stock options were not perceived as key incentives, most workers reported their options are worthless </li></ul></ul><ul><li>2003 </li></ul><ul><ul><li>IT unemployment 5.6%, tenth of a point higher US market (BLS) </li></ul></ul><ul><ul><ul><li>Primarily driven by cost cutting </li></ul></ul></ul><ul><ul><ul><li>Increase productivity ( tools & technologies) </li></ul></ul></ul><ul><ul><ul><li>Off-shore </li></ul></ul></ul><ul><ul><li>Expected retention for IT workers dropped from 33 months to 25 months </li></ul></ul><ul><ul><li>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) . </li></ul></ul><ul><ul><li>No significant increases in hiring as result of economic resurgences. </li></ul></ul>
  10. 10. Current Employment Trends
  11. 11. 2004 will be a Transitional Year <ul><li>“ 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….” </li></ul><ul><li>  Leon Kopyt, Chairman and CEO of RCM, statement to financial investors as result of 4th quarter and year ended December 31, 2003.   </li></ul>
  12. 12. Employment Trends 2004 <ul><li>Continued downward pressure on salaries </li></ul><ul><ul><li>2003 - 21% high-tech companies freeze salaries </li></ul></ul><ul><ul><li>2004 - 10% are projecting to freeze salaries </li></ul></ul><ul><li>Now how about some good news </li></ul><ul><ul><li>IT spending will be up 2.2% (Goldman Sach’s ) </li></ul></ul><ul><ul><li>Long term spending 5.8% (Goldman Sach’s ) </li></ul></ul><ul><li>Hiring managers plan to add new jobs (CareerBuilder) </li></ul><ul><ul><li>32% will recruit to expand operations </li></ul></ul><ul><ul><li>52% will be replacing workers who left voluntarily or were laid off </li></ul></ul>
  13. 13. Employment Trends 2004 <ul><li>Finding the right people will become more challenging (CareerBuilder) </li></ul><ul><ul><li>56% of hiring managers are currently filling in 30 days or less. </li></ul></ul><ul><ul><li>36% of hiring managers report that they are starting to experience trouble zeroing in on the right candidate. </li></ul></ul><ul><ul><li>Online traffic increased by 117%, total posting increase by 33% (January 2003-2004). </li></ul></ul><ul><li>Managers are starting to experience that when offers are extended, candidates are no longer available. </li></ul><ul><li>Candidates are more selective with offers they consider </li></ul><ul><li>Expect higher turnover </li></ul><ul><ul><li>Underpaid </li></ul></ul><ul><ul><li>Unchallenged </li></ul></ul><ul><ul><li>Unhappy </li></ul></ul>
  14. 14. What are the skill sets employers are looking for? <ul><ul><li>IT Security </li></ul></ul><ul><ul><li>Windows Administration </li></ul></ul><ul><ul><li>Cisco Network Administration </li></ul></ul><ul><ul><li>Visual Basic Developers </li></ul></ul><ul><ul><li>.Net Developers </li></ul></ul><ul><ul><li>Check Point Firewall Administration </li></ul></ul><ul><ul><li>Active Server Page (ASP) Developers </li></ul></ul><ul><ul><li>Oracle Database Management </li></ul></ul><ul><ul><li>Linux Administration </li></ul></ul><ul><ul><li>Java Developers </li></ul></ul><ul><ul><li>XML Developers </li></ul></ul><ul><ul><li>C++ Developers </li></ul></ul><ul><ul><li>ActiveX Developers </li></ul></ul><ul><ul><li>C# Development </li></ul></ul><ul><ul><li>Wireless Networking </li></ul></ul>
  15. 15. Top 25 Most Active Employers – CA Number of Job Postings – Oct. 2003 <ul><li>Kaiser Permanente </li></ul><ul><li>Tenet Healthcare </li></ul><ul><li>Raytheon </li></ul><ul><li>Stanford Medical </li></ul><ul><li>Boeing </li></ul><ul><li>Cingular </li></ul><ul><li>Sprint </li></ul><ul><li>Northrop Grumman </li></ul><ul><li>Scripps </li></ul><ul><li>Sutter Health </li></ul><ul><li>Washington Mutual </li></ul><ul><li>E-Bay </li></ul><ul><li>Deloitte & Touche </li></ul><ul><li>Lockheed Martin </li></ul><ul><li>US Navy </li></ul><ul><li>Sun Microsystems </li></ul><ul><li>AT&T </li></ul><ul><li>US Air force </li></ul><ul><li>Target Corporation </li></ul><ul><li>Verizon </li></ul><ul><li>Intuit Inc. </li></ul><ul><li>Yum! Brands </li></ul><ul><li>Mervyn’s </li></ul><ul><li>Pfizer </li></ul><ul><li>Warner Bros. </li></ul><ul><li>2091 </li></ul><ul><li>2986 </li></ul><ul><li>1982 </li></ul><ul><li>887 </li></ul><ul><li>775 </li></ul><ul><li>753 </li></ul><ul><li>642 </li></ul><ul><li>626 </li></ul><ul><li>617 </li></ul><ul><li>538 </li></ul><ul><li>521 </li></ul><ul><li>503 </li></ul><ul><li>369 </li></ul><ul><li>367 </li></ul><ul><li>358 </li></ul><ul><li>333 </li></ul><ul><li>318 </li></ul><ul><li>297 </li></ul><ul><li>289 </li></ul><ul><li>284 </li></ul><ul><li>272 </li></ul><ul><li>220 </li></ul><ul><li>207 </li></ul><ul><li>205 </li></ul><ul><li>189 </li></ul>
  16. 16. Employment Trends 21 st Century
  17. 17. Hot Careers for the 21 st Century <ul><li>IT Security </li></ul><ul><li>Network Experts </li></ul><ul><li>Information Architect </li></ul><ul><li>Web Site/Database Integrator </li></ul><ul><li>Web Developers </li></ul><ul><li>Information Broker/Infomediary </li></ul><ul><li>E-Commerce CFO </li></ul><ul><li>Internet CEO </li></ul><ul><li>Vice-President, E-Commerce </li></ul>
  18. 18. Offshore – What should you do about it? <ul><li>Get on the bandwagon </li></ul><ul><li>Must add value - understand the business </li></ul><ul><li>Architect positions are less likely to be moved offshore </li></ul><ul><li>Must be culturally aware with the ability to handle logistics of communication (early morning or late night conferences) </li></ul><ul><li>Must be flexible </li></ul><ul><li>Must be top notch, great communicator, ability to move around in the business world, a leader, willing to work with offshore teams </li></ul><ul><li>Look at the positive </li></ul><ul><ul><li>Forces you to stay current with technology </li></ul></ul><ul><ul><li>Avoid software maintenance or grunt work </li></ul></ul><ul><ul><li>Highly critical, complex design will remain in-house </li></ul></ul><ul><li>Bottom line - must be perceived as a strategic player </li></ul>
  19. 19. Long Term Trends <ul><li>IT professional must actively manage their career. </li></ul><ul><li>Today's environment mandates employees continue education throughout their lifetime. </li></ul><ul><li>10 of the fastest jobs are in the computer field. </li></ul><ul><li>Employers will increase the use of contingent workers. </li></ul><ul><li>Telecommuting will increase in popularity with employers and employees. </li></ul><ul><li>Students today can anticipate 8-10 careers in their lifetime </li></ul><ul><li>Technology advances and population requirements will continue to drive career trends </li></ul>
  20. 20. General Tips for Managing IT Careers <ul><li>Gain industry-specific knowledge, understand the business. </li></ul><ul><li>Keep up with broader technology world </li></ul><ul><ul><li>Expect to continue training </li></ul></ul><ul><ul><li>Seek focused training </li></ul></ul><ul><ul><li>Seek on-the-job training – for in-demand area </li></ul></ul><ul><li>Get into management, seek higher management positions </li></ul><ul><li>Understand your options as a free agent </li></ul><ul><li>Network, Network, Network </li></ul><ul><ul><li>The usual </li></ul></ul><ul><ul><ul><li>Technical user groups </li></ul></ul></ul><ul><ul><ul><li>Technology societies </li></ul></ul></ul><ul><ul><ul><li>Roundtables </li></ul></ul></ul><ul><ul><li>Non-technical groups </li></ul></ul><ul><ul><li>Informational interviews </li></ul></ul><ul><li>Be positive, not defensive </li></ul>
  21. 21. Appendix
  22. 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. 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. 24. <ul><li>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. </li></ul><ul><li>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. </li></ul><ul><li>SOURCE : 2004 Salary Guide by Robert Half Technology </li></ul><ul><li>NOTE : Salary ranges provided reflect averages for Los Angeles, San Francisco, Sacramento, San Jose and San Diego. </li></ul>Salaries for IT Professionals - CA
  25. 25. <ul><li>Add 10-15% for Cisco Certified Internetwork Expert certification and 5-7% for UNIX administration skills. </li></ul><ul><li>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. </li></ul><ul><li>SOURCE : 2004 Salary Guide by Robert Half Technology </li></ul><ul><li>NOTE : Salary ranges provided reflect averages for Los Angeles, San Francisco, Sacramento, San Jose and San Diego. </li></ul>Salaries for IT Professionals - CA
  26. 26. <ul><li>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. </li></ul><ul><li>SOURCE : 2004 Salary Guide by Robert Half Technology </li></ul><ul><li>NOTE : Salary ranges provided reflect averages for Los Angeles, San Francisco, Sacramento, San Jose and San Diego. </li></ul>Salaries for IT Professionals - CA

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