SlideShare a Scribd company logo
4445 North A1A, Suite 200
                                                                                        Vero Beach, FL 32963
   Foote Partners, LLC
             Foote Research Group
                                                                                        772-234-2787 Tel
                                                                                        775-262-6619 Fax
                                                                                        www.footepartners.com




    FOR IMMEDIATE RELEASE

    Contact:          David Foote, dfoote@footepartners.com
                      Bill Reynolds billr@footepartners.com
                      Tel: 772-234-2787




                   IT Labor Market Predictions for 2010 (Summary)


The foundation of Foote Partners’ predications is the continuous surveying and monitoring of workforce
trends and IT and business executive behavior at 1,980 North American employers.




Vero Beach, FL – Friday, December 4, 2009. Foote Partners’ predictions for the IT jobs market
in 2010 could best be described as good news, bad news.


2010 IT labor market: What recent US government job reports are telling us

1. IT unemployment overall has stabilized. Steady momentum in services sector job gains, offset
by continued volatility elsewhere.

U.S. employment numbers for November released last week by the Department of Labor (DOL)
show a second straight month of overall improvement in IT-related employment segments,
indicating that stabilization has finally occurred. Plus there is proof of at least some momentum
starting to build for an IT job recovery in 2010 in two out of five technology employment
segments, each of them showing two or three straight months of net jobs growth.

Five IT bellwether job segments reported in the DOL statistics lost 7,300 jobs in September,
October, and November but added 18,500 jobs for a net gain of 11,200 jobs. By contrast, for the
first eight months of 2009 (January through August), the same five IT job segments experienced
a net loss of nearly 31,000 jobs.

The most robust job segment, Management and Technical Consulting Services, has gained a net
13,600 jobs in the first eleven months of 2009, with net job gains in four of the last five months.

A second segment in the same job category, Computer Systems Design and Related Services,
posted a net loss of 7,800 jobs in the same 11-month period, but a gain of 5,500 jobs in October
and November. Not so lucky in 2009 were services jobs is the Data Processing, Hosting, and
Related Services segment, with a net loss of 6,700 jobs since the start of the year, 1,800 of those
in the last two months.




Foote Partners 2010 IT Predictions                                                                 Page 1
©2009 Copyright Foote Partners LLC (www.footepartners.com).
4445 North A1A, Suite 200
                                                                                     Vero Beach, FL 32963
   Foote Partners, LLC
             Foote Research Group
                                                                                     772-234-2787 Tel
                                                                                     775-262-6619 Fax
                                                                                     www.footepartners.com




IT Labor Market Predictions – cont’d.


This is a good news, bad news employment report for IT. On the one hand, the IT services
industry can look forward to increasing demand for their services. We will see hiring of technical
and management specialists picking up further in the first quarter of 2010. But on the other hand,
companies offering DP and hosting services are still feeling a great deal of pain, as are computer,
peripherals and communications manufacturers who continue to shed jobs.


2010 IT labor market: What Foote Partners proprietary research is telling us

The tech industry has lead our nation out of its last few economic recessions, and hiring was of
course a trailing indicator each time. So what should we expect now that, according to
government economists, the recession has technically ended? Some economic indicators have
turned the corner but can this be sustained, and when will hiring return?


2. Slim to no chance for meaningful IT jobs recovery in 2010.

We believe IT hiring overall will not pick up noticeably until late next year, and more likely 2011,
despite the recent GDP upturn and recovering stock prices in our nation’s third straight year of
economic instability.

Expect the length of the tail on this staffing lag to be much longer than previous economic
recoveries. Volatility will continue to punctuate staffing and pay levels throughout 2010, with
human capital investments focused on specific IT skill specializations as employers struggle to
recalibrate their IT workforces by striking the right balance between costs, agility, and intense
competitive market pressures---which is a moving target, of course.


3. Investments focused more on skills than jobs in 2010.

As we’ve been reporting throughout 2009, the accent is less on jobs and hiring and much more
on filling critical skills needs, with several options available to do so. Skills may be acquired from
the inside (hiring, training), from the outside (contractors, consultants), ‘rented’ via outsourcing
and offshoring, or ‘given over’ by purchasing any number of managed services.

Hiring restrictions, combined with business leaders demanding quicker high impact, predictable,
cost-effective execution, will continue in 2010 to refocus employers on skills, not jobs. In a
process somewhat different than traditional drawn-out hiring practices to fill resource gaps, they
first specify the work to be done followed by an intensive identification of hard and soft skills
needed. Next they look around for the people who have these skills, both inside and outside their
company, and at what expertise and expense level. Finite resources are shifted very quickly
toward retaining and building—or renting---those skills and workers, and just as rapidly away from
resources they no longer need. And that’s unusual, because workforce reshuffling in response to


Foote Partners 2010 IT Predictions                                                              Page 2
©2009 Copyright Foote Partners LLC (www.footepartners.com).
4445 North A1A, Suite 200
                                                                                  Vero Beach, FL 32963
   Foote Partners, LLC
             Foote Research Group
                                                                                  772-234-2787 Tel
                                                                                  775-262-6619 Fax
                                                                                  www.footepartners.com




IT Labor Market Predictions – cont’d.


business decisions used to take months; now it’s happening in weeks and even days. This is
responsible for the extreme volatility in skills pay and demand evidenced in Foote Partners’ 2009
compensation trend surveys beginning in July 2009. (see http://tinyurl.com/3Q09ITskills)

The biggest downside of this skills focus and accelerated process: Quick decisions to cast off
anybody and anything that is a drag on finite resources often results in unfortunate consequences
post-recession when unique experience and skills held by certain cast-offs are desired once
again. The big layoffs may be over for now but the risk of shifted to rapid specialized skills
acquisition and selective hiring will burn careless employers.


4. IT services employment sector first to recover, but differently for small versus large vendors.

We believe the search will be even more frantic next year for right-skilled IT contractors,
consultants, and even managed services that can be depended on to perform critical work---a
boon for the IT services sector. Boutique SMB consulting firms in hot segments such as security
will continue to experience acute talent shortages against a steady drumbeat of demand for their
specialized services, which are generally regarded very highly for their quality, reliability,
relationship management, and competitive pricing (versus their much larger competition). By
contrast, headcount growth in large systems integrators and services firms will be slower and
more steady as the year progresses.


5. Hot skills and certifications for 2010

Hot skills acquisitions areas we've reported previously include information security, ERP (mostly
SAP), open source operating systems, virtualization, architecting, a variety of IP networking areas
(VPN, Metro Ethernet, IP telephony), and business processes.

Also in demand are a handful of skills relating to e-commerce development and Web 2.0/social
media, including selected programming languages and tools: Microsoft Commerce Server; Java;
SOAP; Python, Microsoft Sharepoint; C; SQL; Sybase Adaptive Server.




Foote Partners 2010 IT Predictions                                                           Page 3
©2009 Copyright Foote Partners LLC (www.footepartners.com).
4445 North A1A, Suite 200
                                                                                             Vero Beach, FL 32963
   Foote Partners, LLC
             Foote Research Group
                                                                                             772-234-2787 Tel
                                                                                             775-262-6619 Fax
                                                                                             www.footepartners.com




       Items are displayed in descending order of “hotness”. Generally speaking, for any single
       item, ranking is somewhat arbitrary within + 3 positions of that item.

       2010 IT SKILLS HOT LIST (Noncertified)

       1.    SAP SRM (Supplier Relationship Mgmt)                    14.   Solaris
       2.    Linux                                                   15.   Master Data Management
       3.    SAP SCM (Supply Chain Mgmt)                             16.   SAP QM (Quality Mgmt)
       4.    C++                                                     17.   Unified comm./Messaging
       5.    Microsoft Commerce Server                               18.   SAP SM (Service Mgmt)
       6.    SAP PM (Plant Maintenance)                              19.   Virtualization (all)
       7.    Security*                                               20.   SAN (storage area networking)
       8.    Java EE, SE, ME. J2EE                                   21.   Python
       9.    SAP SEM (Strategic Enter. Mgmt)                         22.   Microsoft Sharepoint
       10.   Netweaver PI                                            23.   Perl
       11.   SOAP                                                    24.   Project management
       12.   ERP (various)                                           25.   VoIP/IP telephony
       13.   Netweaver Portals                                       26.   PL/SQL
                                                                     27.   C
       * IDS/IPS, forensics, identity/access mgt, compliance,        28.   Sybase Adaptive Server Enterprise
       firewalls, threat/vulnerability assessment and mgt,
                                                                     29.   ITIL
       encryption, data loss prevention, penetration testing,
       incident analysis and handling, Disk, file-level encryption   30.   Business process mgt/modeling
       solutions , Governance/compliance & audit, biometrics,        31.   SAP HCM (SAP HR)
       Web content filters, VoIP security, and security              32.   Database management
       architecture.


       2010 IT CERTIFICATIONS HOT LIST

       1. Red Hat Certified Engineer                                 14.   Check Point Certified Security Expert
       2. Cisco IP Contact Center Express                            15.   GIAC Certified Forensics Analyst
           Specialist                                                16.   GIAC Certified Intrusion Analyst
       3. GIAC Certified Incident Handler                            17.   BEA Certified Architect - SOA
       4. Systems Security Certified Practitioner                          Enterprise Architecture
       5. Cisco Certified Design Expert                              18.   IBM DB2 Universal Database Certified
       6. RedHat Certified Technician                                      Solutions Expert (DB2)
       7. SAS Certified Advanced Programmer                          19.   EC-Council/Certified Hacking
       8. Check Point Certified Security                                   Forensics Investigator (CHFI)
           Administrator                                             20.   GIAC Security Audit Essentials (GSAE)
       9. Sun Certified Programmer for Java                          21.   SNIA Certified Storage Networking
       10. Microsoft Certified IT Professional (All)                       Expert
       11. Certified Information Systems Auditor                     22.   GIAC Certified Incident Manager
       12. IBM Certified Solutions Developer:                        23.   Check Point Certified Master Architect
           WebSphere (all)                                           24.   GIAC Secure Software Programmer
       13. Sun Certified Enterprise Architect for Java
           Platform                                                                 Source: Foote Partners LLC




Foote Partners 2010 IT Predictions                                                                      Page 4
©2009 Copyright Foote Partners LLC (www.footepartners.com).
4445 North A1A, Suite 200
                                                                                   Vero Beach, FL 32963
   Foote Partners, LLC
            Foote Research Group
                                                                                   772-234-2787 Tel
                                                                                   775-262-6619 Fax
                                                                                   www.footepartners.com




IT Labor Market Predictions – cont’d.


6. Hot jobs for 2010

Bar none, for short (and also long) range IT job security the smartest place to be in 2010 is,
ironically….IT security. Unlike other technology job segments, pay and demand for security skills
have risen steadily since 2007 and neither budget nor headcount has diminished in economic
hard times. Driving continued momentum for steady jobs investment and career safety is the
‘perfect storm’ of more regulation; constant fear of increasing threats; greater customer
expectations and demands aimed at vendors; and the splitting of business/strategic risk and
operational security activities, which has been accelerated by market forces. Moreover, it’s not
just deep technical infrastructure and applications skills that are in play but also business
knowledge and experience necessary for corporate and business line security positions in risk
management and governance.

SAP professionals, in particular those with the SAP skills specializations listed on page 4 will feel
safer and with options next year. With a global installed base in excess of 40,000 customers and
talent shortages widely reported in 2008 (softening with 2009 layoffs), employers will continue to
search for technical and functional area specialists to develop and implement SAP solutions.

Social media may have started out as a fad but it is quickly winning serious corporate converts.
The search will intensify in 2010 for IT specialists who can engage audiences in their company’s
messages, products and services. The skills sets in demand will be technical but also heavily
business and consumer focused, with many industry- and situationally-specific flavors.

Surprisingly solid demand in 2009 for web development, e-commerce applications and
systems, and business intelligence skills and competencies will continue to boost related jobs
in 2010. In many ways these are ideal investments for labor-constrained, cost-sensitive
employers looking for ways to maintain market share, boost customer satisfaction, and leverage
information assets in the face of intense competitive market pressures. Investments in numerous
innovations in online business product and service delivery, made in 2008 and 2009, will bear
fruit in the new year as new innovations arrive.


Analyst Note: Jobs we would most like to see thrive in the new year, but for which hiring has
been somewhat constrained during the downturn, are enterprise architects and a collection of
secondary architecture positions in data, information, applications, database, and security.




Foote Partners 2010 IT Predictions                                                            Page 5
©2009 Copyright Foote Partners LLC (www.footepartners.com).
4445 North A1A, Suite 200
                                                                                 Vero Beach, FL 32963
    Foote Partners, LLC
            Foote Research Group
                                                                                 772-234-2787 Tel
                                                                                 775-262-6619 Fax
                                                                                 www.footepartners.com




IT Labor Market Predictions – cont’d.


7. The X factor: Managed services adoption

Momentum will also build next year for managed IT services, which will in turn dramatically affect
a variety of hiring and skills acquisitions decisions.

Impressive growth projections for the next three years---compound annual revenue growth
estimates in the 10 percent to 39 percent range are common for several service segments---
portend the beginning in 2010 of widespread IT workforce reconstitution, allowing employers to
(finally!) start to properly synchronize on-board skills sets with rapid-change business
requirements. Goal: lean, nimble, reactive and predictable human capital deployment with less
waste.

Jobs and skills most affected by growth in managed services in 2010:

•   Networking and Telecommunications (Metro Ethernet; VoIP and various IP services; VPNs;
    mobile wireless)
•   PC/desktop services
•   Applications (selected)
•   Security
•   SMB companies: Remote services; Security


Managed Services market adoption and sizing:

–   47% of large enterprises and 37% of SMBs have purchased some sort of managed service
    in 2009 [Source: Forrester]

–   60% of companies planning to increase managed services in 2009 and beyond [Source:
    Nemertes Research]

–   46% of $31.1 total global managed services spend in 2009 is by SMBs.

–   Global market for IP-based managed services (incl. security): $66 billion by 2012 [Source:
    OVUM}

–   Global market for managed services will grow from $30 billion in 2008 to nearly $43 billion in
    2013 (7.8% CAGR) [Source: Insight Research]

–   2010 global MS market for SMBs: $15.7 billion (+9.6% annual growth) [Source: Techaisle]

–   Hosted application revenues will grow from $8 billion in 2008 to $16 billion by 2012.
    [Source: inStat]



Foote Partners 2010 IT Predictions                                                          Page 6
©2009 Copyright Foote Partners LLC (www.footepartners.com).
4445 North A1A, Suite 200
                                                                        Vero Beach, FL 32963
    Foote Partners, LLC
           Foote Research Group
                                                                        772-234-2787 Tel
                                                                        775-262-6619 Fax
                                                                        www.footepartners.com




IT Labor Market Predictions – cont’d.


–   Fastest growth, managed services segment: VoIP (39% CAGR from 2009- 2012) [Source:
    Forrester]

–   Hottest managed services segment right now: Metro Ethernet, managed IP, VPNs,
    managed VoIP; managed security




Foote Partners 2010 IT Predictions                                                  Page 7
©2009 Copyright Foote Partners LLC (www.footepartners.com).
Foote Partners, LLC
          Foote Research Group
                                                                                                                                      Foote Partners Overview


Company Overview


Foote Partners, LLC is a Vero Beach, FL based independent market research and           Foote Partners IT compensation survey findings and analyses are featured
advisory firm that provides pragmatic and forward-thinking advice about managing        regularly in more than one hundred HR, IT and business periodicals, including
the modern IT professional workforce. Founded in 1997 and comprised of former           Fortune, Business Week, Wall Street Journal, New York Times, CIO Magazine,
Gartner, McKinsey & Company, Towers Perrin and William M. Mercer analysts and           ComputerWorld, Network World,, WorldatWork’s Journal and Workspan
consultants, and former corporate HR, IT, and business executives, Foote Partners       Magazine; in appearances on network and cable television, National Public
has been a thought leader and trusted advisor to more than 1,400 employers              Radio, and global Webcasts and podcasts Foote Partners’ proprietary survey-
seeking improvements in managing IT’s impact on their businesses and customers.         based research and business consulting practice areas include:

The firm’s research division publishes a series of IT and HR research products that         •   Competitive Market Intelligence
have helped more than 1,600 employers benchmark their IT professional                       •   Proprietary IT industry Trend Research and Analysis
compensation, solve their most difficult information technology workforce problems,         •   IT Compensation, Executive Compensation and Incentives
and strengthen their management capabilities.                                               •   IT Management and Organization
                                                                                            •   Professions and Retention Services
Foote Partners’ industry leading IT Insider research series features the industry’s
most up-to-date and forward-looking survey and empirical research on IT                     •   Outsourcing/Offshoring and Strategic Resource Management
salary/bonuses. and skills premium pay and IT organization and workforce trends.            •   Organizational and Transition Management
                                                    TM
The firm’s IT Skills and Certifications Pay Index of pay for 424 IT skills is               •   Workforce Performance Management
currently the oldest and most trusted survey of market values for information               •   Enterprise Project Delivery
technology skills, both certified and noncertified.                                         •   Corporate Strategy and Business Development
                                                                                            •   International and Domestic HR Services
The foundation of the firm’s research is the continuous monitoring of compensation,
attitudes, and workplace experiences of 95,000IT workers in more than 1,900 North
American employers. Foote Partners distinction in the marketplace is its completely     IT Compensation and Workforce Publications
unique compensation survey methodology that solves the widespread problem of IT         Foote Partners’ highly respected IT Insider research series features
job titles that don't match what workers actually do on-the-job---a serious problem     comprehensive and up-to-date IT salary/bonus and technical skills premium
plaguing every major IT salary survey available today that uses passive-survey data     pay benchmark surveys, and IT organization and workforce trends research.
collection methods tied to job titles. The firm’s highly specialized proprietary data   Included in the quarterly IT Insider series are the following:
collection methodology and analytical techniques produce superior validation and
reliability by correcting participant job titles to match actual job responsibilities
                                                                                         IT Insider Professional Salary SurveyTM     IT Insider Workforce Trends SeriesTM
before the survey data enters our survey data compilation engine. All surveys are
                                                                                         reports                                     reports
updated continuously and published quarterly.
                                                                                         IT Skills and Certifications Pay IndexTM    IT Insider Professional Job
                                                                                                                       TM                         TM
                                                                                         IT Salary+Skills Pay Survey      reports    Descriptions




  Foote Partners 2010 IT Predictions                                                                 Page 8
  ©2009 Copyright Foote Partners LLC (www.footepartners.com).
Foote Partners, LLC
      Foote Research Group
                                                                                                                                                               Foote Partners Overview



Foote Partners 2010 IT Compensation Survey Product Map


                                                             Survey Demographics
                                                                                                   IT Professional
                                                             • 64 US/18 Canadian cities                                      IT Skills & Certification
                                                             • 90,000 IT workers surveyed           Salary Survey
                                                                                                                                   Pay Index TM
                                                             • 1,980 employers                        (135 Jobs,
                                                                                                                                    (424 skills)
                                                             • 40+ industries                      25 job families)
                                                             • Updated continuously.
                                                                                                                                                                       IT Skills and
                                                                                                                                                                       Certifications
                                                                                                                                                                         HOT LISTS

                                                                                                                                                            IT Skills
                                                                                                                                                          Volatility Index
                     JOB   FAMILIES AVAILABLE:
                       -   Business Technology
                       -   Business Applications Deliv ery            Salary Reports
                       -   Business Analy sis                       • by job family                                IT Salary+Skills
                       -   Data Warehousing/BI
                                                                    • by job family clusters
                                                                                                                    IT Salary+Skills
                       -   Database Administration                                                                    Pay Survey
                                                                                                                       Pay Survey
                       -   Database Dev elopers                     • for individual jobs in
                       -   e-Commerce/e-Business                     selected cities                                    Reports
                                                                                                                         Reports
                       -   Enterprise Applications
                       -   Enterprise Inf rastructure
                       -   Help Desk                           IT Infrastructure
                       -   IT Architecture
                       -   IT Security                               Survey      IT Base Positions
                       -   Internets/intranets/extranets                              Survey
                       -   Jav a Dev elopers
                       -   Lotus Notes/Domino                                                                  SALARY +SKILLS REPORTS AVAILABL E:
                       -   Messaging                                                                           • Applications Dev elopment
                       -   .NET Dev elopers
                                                                                                               • Business Analy sts/Business Technology
                       -   Network Eng. & Operations                     Long-form                             • Database
                       -   Project Management
                       -   SAP                                        Job De scriptions                        • Data Warehousing/Business Intelligence
                       -   Six Sigma                           • updated continuously                          • E-Commerce
                       -   Storage/SAN/NAS                     • comprehensive, includes                       • IT Architecture
                       -   Sy stems Eng. & Operations                                                          • Microsof t Windows
                       -   Unix/NT/Linux                         internal/external relationships
                                                                                                               • Networking Operations & Engineeri ng
                       -   Voice Engineering                     key to job success; skills and                • Project Management
                       -   Web/I-net                             certification; detailed                       • SAP
                                                                 experience factors.                           • IT Security
                                                                                                               • Systems Engineering and Administration
                                                                                  Short-form                   • Web/I-net
                                                                           Job Profiles (JD excerpts)




Foote Partners 2010 IT Predictions                                                                                    Page 9
©2009 Copyright Foote Partners LLC (www.footepartners.com).

More Related Content

Similar to 2010 IT Labor Market Predictions from Foote Partners

Pw C Ts Mid Year M&A Forecast Release 06.23.10
Pw C Ts Mid Year M&A Forecast Release   06.23.10Pw C Ts Mid Year M&A Forecast Release   06.23.10
Pw C Ts Mid Year M&A Forecast Release 06.23.10mherndon1
 
Fourth Quarter and Full Year 2013 Global ISG Outsourcing Index
Fourth Quarter and Full Year 2013 Global ISG Outsourcing IndexFourth Quarter and Full Year 2013 Global ISG Outsourcing Index
Fourth Quarter and Full Year 2013 Global ISG Outsourcing IndexInformation Services Group (ISG)
 
CASE E-359 DATE 022310 Claire Magat Raffaell.docx
CASE  E-359 DATE  022310 Claire Magat Raffaell.docxCASE  E-359 DATE  022310 Claire Magat Raffaell.docx
CASE E-359 DATE 022310 Claire Magat Raffaell.docxannandleola
 
How Customers Choose Solutions Providers 2009
How Customers Choose Solutions Providers 2009How Customers Choose Solutions Providers 2009
How Customers Choose Solutions Providers 2009ITSMA
 
Business Times_Leading the way_ 9 November 2009 Service Sector Growth In...
Business Times_Leading the way_ 9  November 2009   Service  Sector  Growth In...Business Times_Leading the way_ 9  November 2009   Service  Sector  Growth In...
Business Times_Leading the way_ 9 November 2009 Service Sector Growth In...PeopleWorldwide Singapore
 
Human Capital Management Ecosystem & Brief Market Update - Jan 2015
Human Capital Management Ecosystem & Brief Market Update - Jan 2015Human Capital Management Ecosystem & Brief Market Update - Jan 2015
Human Capital Management Ecosystem & Brief Market Update - Jan 2015Kristopher Beible
 
Michael Page Technology Road Ahead Presentation
Michael Page Technology Road Ahead PresentationMichael Page Technology Road Ahead Presentation
Michael Page Technology Road Ahead PresentationMichael Page Australia
 
When Will Outsourcing Grow Up?
When Will Outsourcing Grow Up?When Will Outsourcing Grow Up?
When Will Outsourcing Grow Up?Walter Adamson
 
Top 5 ICT Issues for Indonesia to address
Top 5 ICT Issues for Indonesia to addressTop 5 ICT Issues for Indonesia to address
Top 5 ICT Issues for Indonesia to addressAgus Wicaksono
 
Cherry Tree's IT Services Newsletter March 2016
Cherry Tree's IT Services Newsletter March 2016Cherry Tree's IT Services Newsletter March 2016
Cherry Tree's IT Services Newsletter March 2016Elmer Baldwin
 
POINTWEST Careers
POINTWEST CareersPOINTWEST Careers
POINTWEST CareersPointwest
 
Enterprise Data Mgmt Report
Enterprise Data Mgmt ReportEnterprise Data Mgmt Report
Enterprise Data Mgmt ReportErik Kolb
 
Iw social business-2011
Iw social business-2011Iw social business-2011
Iw social business-2011Alex Krol
 
Cleared Job Fair Job Seeker Handbook Nov 18, 2010, Crystal City, VA
Cleared Job Fair Job Seeker Handbook Nov 18, 2010, Crystal City, VACleared Job Fair Job Seeker Handbook Nov 18, 2010, Crystal City, VA
Cleared Job Fair Job Seeker Handbook Nov 18, 2010, Crystal City, VAClearedJobs.Net
 
CFOT renew-7260003
CFOT renew-7260003CFOT renew-7260003
CFOT renew-7260003Mounir Sobhy
 
BDKRelease121506
BDKRelease121506BDKRelease121506
BDKRelease121506finance44
 

Similar to 2010 IT Labor Market Predictions from Foote Partners (20)

Potter Tech
Potter TechPotter Tech
Potter Tech
 
Pw C Ts Mid Year M&A Forecast Release 06.23.10
Pw C Ts Mid Year M&A Forecast Release   06.23.10Pw C Ts Mid Year M&A Forecast Release   06.23.10
Pw C Ts Mid Year M&A Forecast Release 06.23.10
 
Ccg Solution Reo Fund
Ccg Solution Reo FundCcg Solution Reo Fund
Ccg Solution Reo Fund
 
Fourth Quarter and Full Year 2013 Global ISG Outsourcing Index
Fourth Quarter and Full Year 2013 Global ISG Outsourcing IndexFourth Quarter and Full Year 2013 Global ISG Outsourcing Index
Fourth Quarter and Full Year 2013 Global ISG Outsourcing Index
 
CASE E-359 DATE 022310 Claire Magat Raffaell.docx
CASE  E-359 DATE  022310 Claire Magat Raffaell.docxCASE  E-359 DATE  022310 Claire Magat Raffaell.docx
CASE E-359 DATE 022310 Claire Magat Raffaell.docx
 
How Customers Choose Solutions Providers 2009
How Customers Choose Solutions Providers 2009How Customers Choose Solutions Providers 2009
How Customers Choose Solutions Providers 2009
 
Business Times_Leading the way_ 9 November 2009 Service Sector Growth In...
Business Times_Leading the way_ 9  November 2009   Service  Sector  Growth In...Business Times_Leading the way_ 9  November 2009   Service  Sector  Growth In...
Business Times_Leading the way_ 9 November 2009 Service Sector Growth In...
 
Human Capital Management Ecosystem & Brief Market Update - Jan 2015
Human Capital Management Ecosystem & Brief Market Update - Jan 2015Human Capital Management Ecosystem & Brief Market Update - Jan 2015
Human Capital Management Ecosystem & Brief Market Update - Jan 2015
 
Michael Page Technology Road Ahead Presentation
Michael Page Technology Road Ahead PresentationMichael Page Technology Road Ahead Presentation
Michael Page Technology Road Ahead Presentation
 
Sourcing Market Overview
Sourcing Market OverviewSourcing Market Overview
Sourcing Market Overview
 
When Will Outsourcing Grow Up?
When Will Outsourcing Grow Up?When Will Outsourcing Grow Up?
When Will Outsourcing Grow Up?
 
Top 5 ICT Issues for Indonesia to address
Top 5 ICT Issues for Indonesia to addressTop 5 ICT Issues for Indonesia to address
Top 5 ICT Issues for Indonesia to address
 
Cherry Tree's IT Services Newsletter March 2016
Cherry Tree's IT Services Newsletter March 2016Cherry Tree's IT Services Newsletter March 2016
Cherry Tree's IT Services Newsletter March 2016
 
POINTWEST Careers
POINTWEST CareersPOINTWEST Careers
POINTWEST Careers
 
Enterprise Data Mgmt Report
Enterprise Data Mgmt ReportEnterprise Data Mgmt Report
Enterprise Data Mgmt Report
 
Iw social business-2011
Iw social business-2011Iw social business-2011
Iw social business-2011
 
Cleared Job Fair Job Seeker Handbook Nov 18, 2010, Crystal City, VA
Cleared Job Fair Job Seeker Handbook Nov 18, 2010, Crystal City, VACleared Job Fair Job Seeker Handbook Nov 18, 2010, Crystal City, VA
Cleared Job Fair Job Seeker Handbook Nov 18, 2010, Crystal City, VA
 
IT Trends & Service Management
IT Trends & Service ManagementIT Trends & Service Management
IT Trends & Service Management
 
CFOT renew-7260003
CFOT renew-7260003CFOT renew-7260003
CFOT renew-7260003
 
BDKRelease121506
BDKRelease121506BDKRelease121506
BDKRelease121506
 

Recently uploaded

Speed Wins: From Kafka to APIs in Minutes
Speed Wins: From Kafka to APIs in MinutesSpeed Wins: From Kafka to APIs in Minutes
Speed Wins: From Kafka to APIs in Minutesconfluent
 
The Future of Platform Engineering
The Future of Platform EngineeringThe Future of Platform Engineering
The Future of Platform EngineeringJemma Hussein Allen
 
Unpacking Value Delivery - Agile Oxford Meetup - May 2024.pptx
Unpacking Value Delivery - Agile Oxford Meetup - May 2024.pptxUnpacking Value Delivery - Agile Oxford Meetup - May 2024.pptx
Unpacking Value Delivery - Agile Oxford Meetup - May 2024.pptxDavid Michel
 
Neuro-symbolic is not enough, we need neuro-*semantic*
Neuro-symbolic is not enough, we need neuro-*semantic*Neuro-symbolic is not enough, we need neuro-*semantic*
Neuro-symbolic is not enough, we need neuro-*semantic*Frank van Harmelen
 
Transcript: Selling digital books in 2024: Insights from industry leaders - T...
Transcript: Selling digital books in 2024: Insights from industry leaders - T...Transcript: Selling digital books in 2024: Insights from industry leaders - T...
Transcript: Selling digital books in 2024: Insights from industry leaders - T...BookNet Canada
 
Exploring UiPath Orchestrator API: updates and limits in 2024 🚀
Exploring UiPath Orchestrator API: updates and limits in 2024 🚀Exploring UiPath Orchestrator API: updates and limits in 2024 🚀
Exploring UiPath Orchestrator API: updates and limits in 2024 🚀DianaGray10
 
FIDO Alliance Osaka Seminar: FIDO Security Aspects.pdf
FIDO Alliance Osaka Seminar: FIDO Security Aspects.pdfFIDO Alliance Osaka Seminar: FIDO Security Aspects.pdf
FIDO Alliance Osaka Seminar: FIDO Security Aspects.pdfFIDO Alliance
 
When stars align: studies in data quality, knowledge graphs, and machine lear...
When stars align: studies in data quality, knowledge graphs, and machine lear...When stars align: studies in data quality, knowledge graphs, and machine lear...
When stars align: studies in data quality, knowledge graphs, and machine lear...Elena Simperl
 
IoT Analytics Company Presentation May 2024
IoT Analytics Company Presentation May 2024IoT Analytics Company Presentation May 2024
IoT Analytics Company Presentation May 2024IoTAnalytics
 
Mission to Decommission: Importance of Decommissioning Products to Increase E...
Mission to Decommission: Importance of Decommissioning Products to Increase E...Mission to Decommission: Importance of Decommissioning Products to Increase E...
Mission to Decommission: Importance of Decommissioning Products to Increase E...Product School
 
Key Trends Shaping the Future of Infrastructure.pdf
Key Trends Shaping the Future of Infrastructure.pdfKey Trends Shaping the Future of Infrastructure.pdf
Key Trends Shaping the Future of Infrastructure.pdfCheryl Hung
 
НАДІЯ ФЕДЮШКО БАЦ «Професійне зростання QA спеціаліста»
НАДІЯ ФЕДЮШКО БАЦ  «Професійне зростання QA спеціаліста»НАДІЯ ФЕДЮШКО БАЦ  «Професійне зростання QA спеціаліста»
НАДІЯ ФЕДЮШКО БАЦ «Професійне зростання QA спеціаліста»QADay
 
PHP Frameworks: I want to break free (IPC Berlin 2024)
PHP Frameworks: I want to break free (IPC Berlin 2024)PHP Frameworks: I want to break free (IPC Berlin 2024)
PHP Frameworks: I want to break free (IPC Berlin 2024)Ralf Eggert
 
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdfFIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdfFIDO Alliance
 
UiPath Test Automation using UiPath Test Suite series, part 3
UiPath Test Automation using UiPath Test Suite series, part 3UiPath Test Automation using UiPath Test Suite series, part 3
UiPath Test Automation using UiPath Test Suite series, part 3DianaGray10
 
Quantum Computing: Current Landscape and the Future Role of APIs
Quantum Computing: Current Landscape and the Future Role of APIsQuantum Computing: Current Landscape and the Future Role of APIs
Quantum Computing: Current Landscape and the Future Role of APIsVlad Stirbu
 
From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...
From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...
From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...Product School
 
FIDO Alliance Osaka Seminar: Overview.pdf
FIDO Alliance Osaka Seminar: Overview.pdfFIDO Alliance Osaka Seminar: Overview.pdf
FIDO Alliance Osaka Seminar: Overview.pdfFIDO Alliance
 
Kubernetes & AI - Beauty and the Beast !?! @KCD Istanbul 2024
Kubernetes & AI - Beauty and the Beast !?! @KCD Istanbul 2024Kubernetes & AI - Beauty and the Beast !?! @KCD Istanbul 2024
Kubernetes & AI - Beauty and the Beast !?! @KCD Istanbul 2024Tobias Schneck
 
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdfFIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdfFIDO Alliance
 

Recently uploaded (20)

Speed Wins: From Kafka to APIs in Minutes
Speed Wins: From Kafka to APIs in MinutesSpeed Wins: From Kafka to APIs in Minutes
Speed Wins: From Kafka to APIs in Minutes
 
The Future of Platform Engineering
The Future of Platform EngineeringThe Future of Platform Engineering
The Future of Platform Engineering
 
Unpacking Value Delivery - Agile Oxford Meetup - May 2024.pptx
Unpacking Value Delivery - Agile Oxford Meetup - May 2024.pptxUnpacking Value Delivery - Agile Oxford Meetup - May 2024.pptx
Unpacking Value Delivery - Agile Oxford Meetup - May 2024.pptx
 
Neuro-symbolic is not enough, we need neuro-*semantic*
Neuro-symbolic is not enough, we need neuro-*semantic*Neuro-symbolic is not enough, we need neuro-*semantic*
Neuro-symbolic is not enough, we need neuro-*semantic*
 
Transcript: Selling digital books in 2024: Insights from industry leaders - T...
Transcript: Selling digital books in 2024: Insights from industry leaders - T...Transcript: Selling digital books in 2024: Insights from industry leaders - T...
Transcript: Selling digital books in 2024: Insights from industry leaders - T...
 
Exploring UiPath Orchestrator API: updates and limits in 2024 🚀
Exploring UiPath Orchestrator API: updates and limits in 2024 🚀Exploring UiPath Orchestrator API: updates and limits in 2024 🚀
Exploring UiPath Orchestrator API: updates and limits in 2024 🚀
 
FIDO Alliance Osaka Seminar: FIDO Security Aspects.pdf
FIDO Alliance Osaka Seminar: FIDO Security Aspects.pdfFIDO Alliance Osaka Seminar: FIDO Security Aspects.pdf
FIDO Alliance Osaka Seminar: FIDO Security Aspects.pdf
 
When stars align: studies in data quality, knowledge graphs, and machine lear...
When stars align: studies in data quality, knowledge graphs, and machine lear...When stars align: studies in data quality, knowledge graphs, and machine lear...
When stars align: studies in data quality, knowledge graphs, and machine lear...
 
IoT Analytics Company Presentation May 2024
IoT Analytics Company Presentation May 2024IoT Analytics Company Presentation May 2024
IoT Analytics Company Presentation May 2024
 
Mission to Decommission: Importance of Decommissioning Products to Increase E...
Mission to Decommission: Importance of Decommissioning Products to Increase E...Mission to Decommission: Importance of Decommissioning Products to Increase E...
Mission to Decommission: Importance of Decommissioning Products to Increase E...
 
Key Trends Shaping the Future of Infrastructure.pdf
Key Trends Shaping the Future of Infrastructure.pdfKey Trends Shaping the Future of Infrastructure.pdf
Key Trends Shaping the Future of Infrastructure.pdf
 
НАДІЯ ФЕДЮШКО БАЦ «Професійне зростання QA спеціаліста»
НАДІЯ ФЕДЮШКО БАЦ  «Професійне зростання QA спеціаліста»НАДІЯ ФЕДЮШКО БАЦ  «Професійне зростання QA спеціаліста»
НАДІЯ ФЕДЮШКО БАЦ «Професійне зростання QA спеціаліста»
 
PHP Frameworks: I want to break free (IPC Berlin 2024)
PHP Frameworks: I want to break free (IPC Berlin 2024)PHP Frameworks: I want to break free (IPC Berlin 2024)
PHP Frameworks: I want to break free (IPC Berlin 2024)
 
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdfFIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
 
UiPath Test Automation using UiPath Test Suite series, part 3
UiPath Test Automation using UiPath Test Suite series, part 3UiPath Test Automation using UiPath Test Suite series, part 3
UiPath Test Automation using UiPath Test Suite series, part 3
 
Quantum Computing: Current Landscape and the Future Role of APIs
Quantum Computing: Current Landscape and the Future Role of APIsQuantum Computing: Current Landscape and the Future Role of APIs
Quantum Computing: Current Landscape and the Future Role of APIs
 
From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...
From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...
From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...
 
FIDO Alliance Osaka Seminar: Overview.pdf
FIDO Alliance Osaka Seminar: Overview.pdfFIDO Alliance Osaka Seminar: Overview.pdf
FIDO Alliance Osaka Seminar: Overview.pdf
 
Kubernetes & AI - Beauty and the Beast !?! @KCD Istanbul 2024
Kubernetes & AI - Beauty and the Beast !?! @KCD Istanbul 2024Kubernetes & AI - Beauty and the Beast !?! @KCD Istanbul 2024
Kubernetes & AI - Beauty and the Beast !?! @KCD Istanbul 2024
 
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdfFIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
 

2010 IT Labor Market Predictions from Foote Partners

  • 1. 4445 North A1A, Suite 200 Vero Beach, FL 32963 Foote Partners, LLC Foote Research Group 772-234-2787 Tel 775-262-6619 Fax www.footepartners.com FOR IMMEDIATE RELEASE Contact: David Foote, dfoote@footepartners.com Bill Reynolds billr@footepartners.com Tel: 772-234-2787 IT Labor Market Predictions for 2010 (Summary) The foundation of Foote Partners’ predications is the continuous surveying and monitoring of workforce trends and IT and business executive behavior at 1,980 North American employers. Vero Beach, FL – Friday, December 4, 2009. Foote Partners’ predictions for the IT jobs market in 2010 could best be described as good news, bad news. 2010 IT labor market: What recent US government job reports are telling us 1. IT unemployment overall has stabilized. Steady momentum in services sector job gains, offset by continued volatility elsewhere. U.S. employment numbers for November released last week by the Department of Labor (DOL) show a second straight month of overall improvement in IT-related employment segments, indicating that stabilization has finally occurred. Plus there is proof of at least some momentum starting to build for an IT job recovery in 2010 in two out of five technology employment segments, each of them showing two or three straight months of net jobs growth. Five IT bellwether job segments reported in the DOL statistics lost 7,300 jobs in September, October, and November but added 18,500 jobs for a net gain of 11,200 jobs. By contrast, for the first eight months of 2009 (January through August), the same five IT job segments experienced a net loss of nearly 31,000 jobs. The most robust job segment, Management and Technical Consulting Services, has gained a net 13,600 jobs in the first eleven months of 2009, with net job gains in four of the last five months. A second segment in the same job category, Computer Systems Design and Related Services, posted a net loss of 7,800 jobs in the same 11-month period, but a gain of 5,500 jobs in October and November. Not so lucky in 2009 were services jobs is the Data Processing, Hosting, and Related Services segment, with a net loss of 6,700 jobs since the start of the year, 1,800 of those in the last two months. Foote Partners 2010 IT Predictions Page 1 ©2009 Copyright Foote Partners LLC (www.footepartners.com).
  • 2. 4445 North A1A, Suite 200 Vero Beach, FL 32963 Foote Partners, LLC Foote Research Group 772-234-2787 Tel 775-262-6619 Fax www.footepartners.com IT Labor Market Predictions – cont’d. This is a good news, bad news employment report for IT. On the one hand, the IT services industry can look forward to increasing demand for their services. We will see hiring of technical and management specialists picking up further in the first quarter of 2010. But on the other hand, companies offering DP and hosting services are still feeling a great deal of pain, as are computer, peripherals and communications manufacturers who continue to shed jobs. 2010 IT labor market: What Foote Partners proprietary research is telling us The tech industry has lead our nation out of its last few economic recessions, and hiring was of course a trailing indicator each time. So what should we expect now that, according to government economists, the recession has technically ended? Some economic indicators have turned the corner but can this be sustained, and when will hiring return? 2. Slim to no chance for meaningful IT jobs recovery in 2010. We believe IT hiring overall will not pick up noticeably until late next year, and more likely 2011, despite the recent GDP upturn and recovering stock prices in our nation’s third straight year of economic instability. Expect the length of the tail on this staffing lag to be much longer than previous economic recoveries. Volatility will continue to punctuate staffing and pay levels throughout 2010, with human capital investments focused on specific IT skill specializations as employers struggle to recalibrate their IT workforces by striking the right balance between costs, agility, and intense competitive market pressures---which is a moving target, of course. 3. Investments focused more on skills than jobs in 2010. As we’ve been reporting throughout 2009, the accent is less on jobs and hiring and much more on filling critical skills needs, with several options available to do so. Skills may be acquired from the inside (hiring, training), from the outside (contractors, consultants), ‘rented’ via outsourcing and offshoring, or ‘given over’ by purchasing any number of managed services. Hiring restrictions, combined with business leaders demanding quicker high impact, predictable, cost-effective execution, will continue in 2010 to refocus employers on skills, not jobs. In a process somewhat different than traditional drawn-out hiring practices to fill resource gaps, they first specify the work to be done followed by an intensive identification of hard and soft skills needed. Next they look around for the people who have these skills, both inside and outside their company, and at what expertise and expense level. Finite resources are shifted very quickly toward retaining and building—or renting---those skills and workers, and just as rapidly away from resources they no longer need. And that’s unusual, because workforce reshuffling in response to Foote Partners 2010 IT Predictions Page 2 ©2009 Copyright Foote Partners LLC (www.footepartners.com).
  • 3. 4445 North A1A, Suite 200 Vero Beach, FL 32963 Foote Partners, LLC Foote Research Group 772-234-2787 Tel 775-262-6619 Fax www.footepartners.com IT Labor Market Predictions – cont’d. business decisions used to take months; now it’s happening in weeks and even days. This is responsible for the extreme volatility in skills pay and demand evidenced in Foote Partners’ 2009 compensation trend surveys beginning in July 2009. (see http://tinyurl.com/3Q09ITskills) The biggest downside of this skills focus and accelerated process: Quick decisions to cast off anybody and anything that is a drag on finite resources often results in unfortunate consequences post-recession when unique experience and skills held by certain cast-offs are desired once again. The big layoffs may be over for now but the risk of shifted to rapid specialized skills acquisition and selective hiring will burn careless employers. 4. IT services employment sector first to recover, but differently for small versus large vendors. We believe the search will be even more frantic next year for right-skilled IT contractors, consultants, and even managed services that can be depended on to perform critical work---a boon for the IT services sector. Boutique SMB consulting firms in hot segments such as security will continue to experience acute talent shortages against a steady drumbeat of demand for their specialized services, which are generally regarded very highly for their quality, reliability, relationship management, and competitive pricing (versus their much larger competition). By contrast, headcount growth in large systems integrators and services firms will be slower and more steady as the year progresses. 5. Hot skills and certifications for 2010 Hot skills acquisitions areas we've reported previously include information security, ERP (mostly SAP), open source operating systems, virtualization, architecting, a variety of IP networking areas (VPN, Metro Ethernet, IP telephony), and business processes. Also in demand are a handful of skills relating to e-commerce development and Web 2.0/social media, including selected programming languages and tools: Microsoft Commerce Server; Java; SOAP; Python, Microsoft Sharepoint; C; SQL; Sybase Adaptive Server. Foote Partners 2010 IT Predictions Page 3 ©2009 Copyright Foote Partners LLC (www.footepartners.com).
  • 4. 4445 North A1A, Suite 200 Vero Beach, FL 32963 Foote Partners, LLC Foote Research Group 772-234-2787 Tel 775-262-6619 Fax www.footepartners.com Items are displayed in descending order of “hotness”. Generally speaking, for any single item, ranking is somewhat arbitrary within + 3 positions of that item. 2010 IT SKILLS HOT LIST (Noncertified) 1. SAP SRM (Supplier Relationship Mgmt) 14. Solaris 2. Linux 15. Master Data Management 3. SAP SCM (Supply Chain Mgmt) 16. SAP QM (Quality Mgmt) 4. C++ 17. Unified comm./Messaging 5. Microsoft Commerce Server 18. SAP SM (Service Mgmt) 6. SAP PM (Plant Maintenance) 19. Virtualization (all) 7. Security* 20. SAN (storage area networking) 8. Java EE, SE, ME. J2EE 21. Python 9. SAP SEM (Strategic Enter. Mgmt) 22. Microsoft Sharepoint 10. Netweaver PI 23. Perl 11. SOAP 24. Project management 12. ERP (various) 25. VoIP/IP telephony 13. Netweaver Portals 26. PL/SQL 27. C * IDS/IPS, forensics, identity/access mgt, compliance, 28. Sybase Adaptive Server Enterprise firewalls, threat/vulnerability assessment and mgt, 29. ITIL encryption, data loss prevention, penetration testing, incident analysis and handling, Disk, file-level encryption 30. Business process mgt/modeling solutions , Governance/compliance & audit, biometrics, 31. SAP HCM (SAP HR) Web content filters, VoIP security, and security 32. Database management architecture. 2010 IT CERTIFICATIONS HOT LIST 1. Red Hat Certified Engineer 14. Check Point Certified Security Expert 2. Cisco IP Contact Center Express 15. GIAC Certified Forensics Analyst Specialist 16. GIAC Certified Intrusion Analyst 3. GIAC Certified Incident Handler 17. BEA Certified Architect - SOA 4. Systems Security Certified Practitioner Enterprise Architecture 5. Cisco Certified Design Expert 18. IBM DB2 Universal Database Certified 6. RedHat Certified Technician Solutions Expert (DB2) 7. SAS Certified Advanced Programmer 19. EC-Council/Certified Hacking 8. Check Point Certified Security Forensics Investigator (CHFI) Administrator 20. GIAC Security Audit Essentials (GSAE) 9. Sun Certified Programmer for Java 21. SNIA Certified Storage Networking 10. Microsoft Certified IT Professional (All) Expert 11. Certified Information Systems Auditor 22. GIAC Certified Incident Manager 12. IBM Certified Solutions Developer: 23. Check Point Certified Master Architect WebSphere (all) 24. GIAC Secure Software Programmer 13. Sun Certified Enterprise Architect for Java Platform Source: Foote Partners LLC Foote Partners 2010 IT Predictions Page 4 ©2009 Copyright Foote Partners LLC (www.footepartners.com).
  • 5. 4445 North A1A, Suite 200 Vero Beach, FL 32963 Foote Partners, LLC Foote Research Group 772-234-2787 Tel 775-262-6619 Fax www.footepartners.com IT Labor Market Predictions – cont’d. 6. Hot jobs for 2010 Bar none, for short (and also long) range IT job security the smartest place to be in 2010 is, ironically….IT security. Unlike other technology job segments, pay and demand for security skills have risen steadily since 2007 and neither budget nor headcount has diminished in economic hard times. Driving continued momentum for steady jobs investment and career safety is the ‘perfect storm’ of more regulation; constant fear of increasing threats; greater customer expectations and demands aimed at vendors; and the splitting of business/strategic risk and operational security activities, which has been accelerated by market forces. Moreover, it’s not just deep technical infrastructure and applications skills that are in play but also business knowledge and experience necessary for corporate and business line security positions in risk management and governance. SAP professionals, in particular those with the SAP skills specializations listed on page 4 will feel safer and with options next year. With a global installed base in excess of 40,000 customers and talent shortages widely reported in 2008 (softening with 2009 layoffs), employers will continue to search for technical and functional area specialists to develop and implement SAP solutions. Social media may have started out as a fad but it is quickly winning serious corporate converts. The search will intensify in 2010 for IT specialists who can engage audiences in their company’s messages, products and services. The skills sets in demand will be technical but also heavily business and consumer focused, with many industry- and situationally-specific flavors. Surprisingly solid demand in 2009 for web development, e-commerce applications and systems, and business intelligence skills and competencies will continue to boost related jobs in 2010. In many ways these are ideal investments for labor-constrained, cost-sensitive employers looking for ways to maintain market share, boost customer satisfaction, and leverage information assets in the face of intense competitive market pressures. Investments in numerous innovations in online business product and service delivery, made in 2008 and 2009, will bear fruit in the new year as new innovations arrive. Analyst Note: Jobs we would most like to see thrive in the new year, but for which hiring has been somewhat constrained during the downturn, are enterprise architects and a collection of secondary architecture positions in data, information, applications, database, and security. Foote Partners 2010 IT Predictions Page 5 ©2009 Copyright Foote Partners LLC (www.footepartners.com).
  • 6. 4445 North A1A, Suite 200 Vero Beach, FL 32963 Foote Partners, LLC Foote Research Group 772-234-2787 Tel 775-262-6619 Fax www.footepartners.com IT Labor Market Predictions – cont’d. 7. The X factor: Managed services adoption Momentum will also build next year for managed IT services, which will in turn dramatically affect a variety of hiring and skills acquisitions decisions. Impressive growth projections for the next three years---compound annual revenue growth estimates in the 10 percent to 39 percent range are common for several service segments--- portend the beginning in 2010 of widespread IT workforce reconstitution, allowing employers to (finally!) start to properly synchronize on-board skills sets with rapid-change business requirements. Goal: lean, nimble, reactive and predictable human capital deployment with less waste. Jobs and skills most affected by growth in managed services in 2010: • Networking and Telecommunications (Metro Ethernet; VoIP and various IP services; VPNs; mobile wireless) • PC/desktop services • Applications (selected) • Security • SMB companies: Remote services; Security Managed Services market adoption and sizing: – 47% of large enterprises and 37% of SMBs have purchased some sort of managed service in 2009 [Source: Forrester] – 60% of companies planning to increase managed services in 2009 and beyond [Source: Nemertes Research] – 46% of $31.1 total global managed services spend in 2009 is by SMBs. – Global market for IP-based managed services (incl. security): $66 billion by 2012 [Source: OVUM} – Global market for managed services will grow from $30 billion in 2008 to nearly $43 billion in 2013 (7.8% CAGR) [Source: Insight Research] – 2010 global MS market for SMBs: $15.7 billion (+9.6% annual growth) [Source: Techaisle] – Hosted application revenues will grow from $8 billion in 2008 to $16 billion by 2012. [Source: inStat] Foote Partners 2010 IT Predictions Page 6 ©2009 Copyright Foote Partners LLC (www.footepartners.com).
  • 7. 4445 North A1A, Suite 200 Vero Beach, FL 32963 Foote Partners, LLC Foote Research Group 772-234-2787 Tel 775-262-6619 Fax www.footepartners.com IT Labor Market Predictions – cont’d. – Fastest growth, managed services segment: VoIP (39% CAGR from 2009- 2012) [Source: Forrester] – Hottest managed services segment right now: Metro Ethernet, managed IP, VPNs, managed VoIP; managed security Foote Partners 2010 IT Predictions Page 7 ©2009 Copyright Foote Partners LLC (www.footepartners.com).
  • 8. Foote Partners, LLC Foote Research Group Foote Partners Overview Company Overview Foote Partners, LLC is a Vero Beach, FL based independent market research and Foote Partners IT compensation survey findings and analyses are featured advisory firm that provides pragmatic and forward-thinking advice about managing regularly in more than one hundred HR, IT and business periodicals, including the modern IT professional workforce. Founded in 1997 and comprised of former Fortune, Business Week, Wall Street Journal, New York Times, CIO Magazine, Gartner, McKinsey & Company, Towers Perrin and William M. Mercer analysts and ComputerWorld, Network World,, WorldatWork’s Journal and Workspan consultants, and former corporate HR, IT, and business executives, Foote Partners Magazine; in appearances on network and cable television, National Public has been a thought leader and trusted advisor to more than 1,400 employers Radio, and global Webcasts and podcasts Foote Partners’ proprietary survey- seeking improvements in managing IT’s impact on their businesses and customers. based research and business consulting practice areas include: The firm’s research division publishes a series of IT and HR research products that • Competitive Market Intelligence have helped more than 1,600 employers benchmark their IT professional • Proprietary IT industry Trend Research and Analysis compensation, solve their most difficult information technology workforce problems, • IT Compensation, Executive Compensation and Incentives and strengthen their management capabilities. • IT Management and Organization • Professions and Retention Services Foote Partners’ industry leading IT Insider research series features the industry’s most up-to-date and forward-looking survey and empirical research on IT • Outsourcing/Offshoring and Strategic Resource Management salary/bonuses. and skills premium pay and IT organization and workforce trends. • Organizational and Transition Management TM The firm’s IT Skills and Certifications Pay Index of pay for 424 IT skills is • Workforce Performance Management currently the oldest and most trusted survey of market values for information • Enterprise Project Delivery technology skills, both certified and noncertified. • Corporate Strategy and Business Development • International and Domestic HR Services The foundation of the firm’s research is the continuous monitoring of compensation, attitudes, and workplace experiences of 95,000IT workers in more than 1,900 North American employers. Foote Partners distinction in the marketplace is its completely IT Compensation and Workforce Publications unique compensation survey methodology that solves the widespread problem of IT Foote Partners’ highly respected IT Insider research series features job titles that don't match what workers actually do on-the-job---a serious problem comprehensive and up-to-date IT salary/bonus and technical skills premium plaguing every major IT salary survey available today that uses passive-survey data pay benchmark surveys, and IT organization and workforce trends research. collection methods tied to job titles. The firm’s highly specialized proprietary data Included in the quarterly IT Insider series are the following: collection methodology and analytical techniques produce superior validation and reliability by correcting participant job titles to match actual job responsibilities IT Insider Professional Salary SurveyTM IT Insider Workforce Trends SeriesTM before the survey data enters our survey data compilation engine. All surveys are reports reports updated continuously and published quarterly. IT Skills and Certifications Pay IndexTM IT Insider Professional Job TM TM IT Salary+Skills Pay Survey reports Descriptions Foote Partners 2010 IT Predictions Page 8 ©2009 Copyright Foote Partners LLC (www.footepartners.com).
  • 9. Foote Partners, LLC Foote Research Group Foote Partners Overview Foote Partners 2010 IT Compensation Survey Product Map Survey Demographics IT Professional • 64 US/18 Canadian cities IT Skills & Certification • 90,000 IT workers surveyed Salary Survey Pay Index TM • 1,980 employers (135 Jobs, (424 skills) • 40+ industries 25 job families) • Updated continuously. IT Skills and Certifications HOT LISTS IT Skills Volatility Index JOB FAMILIES AVAILABLE: - Business Technology - Business Applications Deliv ery Salary Reports - Business Analy sis • by job family IT Salary+Skills - Data Warehousing/BI • by job family clusters IT Salary+Skills - Database Administration Pay Survey Pay Survey - Database Dev elopers • for individual jobs in - e-Commerce/e-Business selected cities Reports Reports - Enterprise Applications - Enterprise Inf rastructure - Help Desk IT Infrastructure - IT Architecture - IT Security Survey IT Base Positions - Internets/intranets/extranets Survey - Jav a Dev elopers - Lotus Notes/Domino SALARY +SKILLS REPORTS AVAILABL E: - Messaging • Applications Dev elopment - .NET Dev elopers • Business Analy sts/Business Technology - Network Eng. & Operations Long-form • Database - Project Management - SAP Job De scriptions • Data Warehousing/Business Intelligence - Six Sigma • updated continuously • E-Commerce - Storage/SAN/NAS • comprehensive, includes • IT Architecture - Sy stems Eng. & Operations • Microsof t Windows - Unix/NT/Linux internal/external relationships • Networking Operations & Engineeri ng - Voice Engineering key to job success; skills and • Project Management - Web/I-net certification; detailed • SAP experience factors. • IT Security • Systems Engineering and Administration Short-form • Web/I-net Job Profiles (JD excerpts) Foote Partners 2010 IT Predictions Page 9 ©2009 Copyright Foote Partners LLC (www.footepartners.com).