Market Review A presentation January 2003. IT Industry What is going on in the IT Industry?
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Transcript of Market Review A presentation January 2003. IT Industry What is going on in the IT Industry?
Market Review A presentation
January 2003
IT Industry
What is going on in the IT Industry?
Projected Market Strengths
• Mobile devices and infrastructure• Interactive voice response systems• Microsoft XP• Thin-client devices• Broadband internet• Security• Disaster recovery• Legacy application platforms• Storage
Current Market Weaknesses
• Consulting• e-Commerce• ERP• CRM• PC hardware and software• Workstations• Fixed network infrastructure• Business communications• Mobile terminals
What is Most Important to any Organisation
• Email• Internet - intranets/extranets• System security• Increasing bandwidth• CRM is leaving ERP behind• Improving existing systems/developments
What is in the News
• Mergers of consultancies, eg LogicaCMG – T/O £2b, 24,000 employees, 34 countries
• Huge outsourcing deals, eg – Unilever o/s BT £640m– Consignia o/s CSC £1.5b
• Company ‘streamlining’, eg Sun• Business strategy (not IT strategy)
Focus on Recruitment
• Current market• Skills• Advertising• Salaries• Costs• Career motivators• Retention
Current Market
• 1m IT employees in UK
• 30% freelancers are ‘resting’
• IT contractors business closure has doubled to 16%
• In-house recruitment specialists
• MV/ managed Agent
• PSLs
• Outsourcing/managed supply
• Recruitment agency consolidation
• Smaller agencies closing
• Legislative changes - working time directive, IR 35
PAYE liability, right to work
Skills – Supply and Demand
Skills in most demand
2002 2001 20001. C++ C++ C++2. SQL UNIX UNIX3. UNIX SQL SQL4. Oracle Java Java5. VB Oracle VB6. Java VB Oracle7. C HTML Windows NT8. Windows NT Windows NT HTML9. Office TCP/IP TCP/IP10. TCP/IP SQL Server C
Skills – Supply and Demand
Skills most in supply
Skill Salary1. HTML £28,4862. Windows NT £30,1123. Unix £35,5484. Java £32,2445. MS Access £29,0566. Oracle £35,9097. MS Visual Basic £31,9348. MS SQL Server £33,2349. C++ £32,56710. Javascript £30,676
Current Advertising Market
• Jobs advertised in hard copy during 12 months to October - 69% on same period last year
• Jobs advertised on-line during 12 months to October - 69% on same period last year
• The on-line IT recruitment market is now fully mature
• YTD October 2002 - Consultancy advertising 76% Direct
advertising 55%
Current Advertising Market
Average number of pages
Computer Weekly
• 2002 - 9• 2001 - 25• 2000 - 49• 1999 - 68
Methods Considered Best when Looking for a Job within IT/Computing
21%
20%
15%
14%
13%
5%
4%
Recruitment consultant/agency
Specialist IT web site
Word of mouth/throughfriends/colleagues
Computer/IT publications
Local/regional newspapers
National newspapers
Contacting potential employer direct
Future Advertising Market?
• Internet - continues to develop
• Companies - brand marketing
• More multi-channel packages
IT Salaries
• Wage premiums IT staff diminishing
1992 +60% average annual wage
2002 +30% average annual wage
• Salaries increased by 4% 2002
5.1% 2001
Advertised Salaries
Q1 2002 Q1 2001 % ChangeSystems Achitect £53,852 £56,709 -5%IT Manager £51,366 £53,641 -4%Project Manager £46,326 £47,033 -2%DBA £36,888 £37,326 -1%Software Engineer £31,280 £30,534 2%Test Analyst £30,537 £29,520 3%
Recruitment Costs
• Buyers market
• Renegotiation of fees/contractor rates and margins
• Shift of contract headcount to permanent - reduce costs
• Advertising costs levelled
Career Motivators
32%
26%
7%
9%
14%
8%
3%
2%
1%
5%
4%
27%
21%
17%
11%
7%
7%
5%
6%
6%
2%
3%
0% 10% 20% 30% 40%
Personal ambition/achievement
Financial/money
Enjoyment/satisfaction
Progression of tech
Gaining IT knowledge
Commitment to company
Challenge
Interest
Customer focus
Team building
Opportunity
< 20 Yrs
21+ Yrs
Retention
Most leavers - push factor - poor management
- low morale
- one-offs
Line managers have most influence on a companies ability to retain, not HR!
Top Tips form Computer People’s Contract
Consultant
• Flexibility• Realistic Rates• Don’t negotiate contract• Be careful with umbrella companies• Specific front cover sheet• Don’t spread skills to thinly• Specify ideally your needs and wants• Take on board constructive criticism
Top Tips form Computer People’sPermanent Consultant
• Apply to as many jobs as are relevant on the internet• Follow up with a call to the consultant and get
through• Apply to fresh jobs every day• Tailor your CV • Highlight relevant skills• A job posted on a Friday well have 300 responses by
the Tuesday - Act quickly and Follow up• Establish good rapport with consultant
Conclusion
• There are jobs out there
• Differentiate yourself
• The IT market is not in depression - The boom is over
• Good Luck