Inland Empire CIO Roundtable Career Trends in IT

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

• 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
RCMs Recruiting Process
Ensuring Success
Engagement Initiation Process
Understanding the Total Requirement

• Submit Candidate
• Client
• A/E

Repeatable Processes

• Check References
• Conduct Technical Interview
• Complete Phone Screen
• Conduct Initial Interview (face to face)

National Database Tools

• Workflow Systems
• Assign Recruiter(s)
• Qualify Resumes
• Source Candidates
• Create Candidate Profile

Foundation for Success
7
Employment Trends Post .com Bomb
8
Percentage of IT Operating Budget Devoted to
Internal Staff

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

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 Sachs )
• Long term spending 5.8 (Goldman Sachs )
• 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 CANumber 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
• ATT
• US Air force
• Target Corporation

• 2091
• 2986
• 1982
• 887
• 775
• 753
• 642
• 626
• 617
• 538
• 521
• 503
• 369
• 367
• 358
• 333
• 318
• 297
• 289

16
Employment Trends 21st Century
17
Hot Careers for the 21st Century

• IT Security
• Network Experts
• Information Architect
• Web Site/Database Integrator
• Web Developers
• Information Broker/Infomediary
• E-Commerce CFO
• Internet CEO
• Vice-President, E-Commerce

18
Offshore What should you do about it?

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

19
Long Term Trends

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

20
General Tips for Managing IT Careers

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

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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 5for Visual
  Basic development skills.
• SOURCE 2004 Salary Guide by Robert Half
  Technology
• NOTE Salary ranges provided reflect averages
  for Los Angeles, San Francisco, Sacramento, San
  Jose and San Diego.

23
Salaries for IT Professionals - CA

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

24
Salaries for IT Professionals - CA

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

25
Salaries for IT Professionals - CA

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

26
Salaries for IT Professionals - CA

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