market review
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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 - PowerPoint PPT PresentationTRANSCRIPT
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Market Review A presentation
January 2003
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IT Industry
What is going on in the IT Industry?
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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
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Current Market Weaknesses
• Consulting• e-Commerce• ERP• CRM• PC hardware and software• Workstations• Fixed network infrastructure• Business communications• Mobile terminals
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What is Most Important to any Organisation
• Email• Internet - intranets/extranets• System security• Increasing bandwidth• CRM is leaving ERP behind• Improving existing systems/developments
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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)
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Focus on Recruitment
• Current market• Skills• Advertising• Salaries• Costs• Career motivators• Retention
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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
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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
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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
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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%
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Current Advertising Market
Average number of pages
Computer Weekly
• 2002 - 9• 2001 - 25• 2000 - 49• 1999 - 68
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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
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Future Advertising Market?
• Internet - continues to develop
• Companies - brand marketing
• More multi-channel packages
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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
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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%
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Recruitment Costs
• Buyers market
• Renegotiation of fees/contractor rates and margins
• Shift of contract headcount to permanent - reduce costs
• Advertising costs levelled
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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
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Retention
Most leavers - push factor - poor management
- low morale
- one-offs
Line managers have most influence on a companies ability to retain, not HR!
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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
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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
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Conclusion
• There are jobs out there
• Differentiate yourself
• The IT market is not in depression - The boom is over
• Good Luck