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
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
2
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
3
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
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
RCM’s Recruiting Process
Engagement
Initiation Process
Submit Candidate
• Client
• A/E
• Check References
• Conduct Technical Interview
•Complete Phone Screen
• Conduct Initial Interview (face to face)
• Workflow Systems
• Assign Recruiter(s)
• Qualify Resumes
• Source Candidates
• Create Candidate Profile
Foundation for Success
Employment Trends Post .com Bomb
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%
Gartner’s Annual Staffing and Spending Survey, October 2003
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.
Current Employment Trends
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.
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 Sach’s )
– Long term spending 5.8% (Goldman Sach’s )
• 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
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
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
Top 25 Most Active Employers – CA
Number of Job Postings – Oct. 2003
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
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
AT&T
US Air force
Target Corporation
Verizon
Intuit Inc.
Yum! Brands
Mervyn’s
Pfizer
Warner Bros.
2091
2986
1982
887
775
753
642
626
617
538
521
503
369
367
358
333
318
297
289
284
272
220
207
205
189
Employment Trends 21st Century
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
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
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
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
Appendix
Salaries for IT Professionals - CA
Vice President of Information Systems
Vice President of Technology
Information Systems (IS) Manager
$
$
$
127,670
123,617
95,825
- $
- $
- $
182,964
178,911
136,065
$
$
$
125,064
103,751
81,501
- $
- $
- $
180,069
174,569
131,723
-1.8%
-2.6%
-2.5%
APPLICATIONS DEVELOPMENT (a)
Title
Manager
Project Manager
Project Leader
Systems Analyst
Programmer/Analyst
Applications Architect
Business Systems Analyst
$
$
$
$
$
$
$
89,456
83,955
71,796
72,086
59,637
83,376
63,980
2003
- $
- $
- $
- $
- $
- $
- $
125,064
110,589
94,667
101,615
93,219
118,406
92,640
$
$
$
$
$
$
$
87,719
81,639
71,217
70,638
58,769
84,824
63,401
2004
- $
- $
- $
- $
- $
- $
- $
121,880
107,115
94,088
98,141
92,930
120,722
91,772
% Change
-2.3%
-3.0%
-0.7%
-2.8%
-0.8%
-1.9%
-0.9%
(a) Add 5-7% for Active Server Page development skills, 10% for C++ development skills, 5-7% for C# development skills,
5-7 percent for Java development skills and 5 percent for Visual Basic development skills.
(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.
Salaries for IT Professionals - CA
(b)
CONSULTING & SYSTEMS INTEGRATION
Title
Director
Practice Manager
Project Manager/Senior Consultant
Staff Consultant
Package Implementation Specialist
ERP Integration Manager
$
$
$
$
$
$
DATA/DATABASE ADMINISTRATION (b)
Title
Database Manager
Database Developer
Database Administrator
Database Analyst
Data Architect
Data Modeler
Data Warehouse Manager
Data Warehouse Analyst
Capacity Planner
QUALITY ASSURANCE (QA) & TESTING
Title
QA/Testing Manager
QA Associate/Analyst
Systems Auditor
99,009
101,036
87,140
63,980
72,954
88,298
2003
- $
- $
- $
- $
- $
- $
98,430
100,167
86,271
62,532
72,665
87,719
2004
- $
- $
- $
- $
- $
- $
141,566
129,696
113,195
85,113
103,352
121,011
% Change
-0.8%
-0.5%
-0.9%
-1.9%
-1.1%
-0.8%
143,013
130,275
114,063
86,561
105,089
122,169
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
94,956
78,455
80,771
68,322
87,429
77,007
92,640
81,060
79,613
2003
- $
- $
- $
- $
- $
- $
- $
- $
- $
129,407
116,379
117,827
92,640
124,485
102,194
121,011
107,115
109,721
$
$
$
$
$
$
$
$
$
93,219
75,560
77,586
67,454
88,877
77,007
94,377
81,639
77,007
2004
- $
- $
- $
- $
- $
- $
- $
- $
- $
126,222
113,484
113,195
92,351
122,169
102,773
121,301
106,247
106,826
% Change
-2.2%
-3.0%
-3.9%
-0.7%
-0.4%
-0.3%
-0.9%
-0.2%
-2.9%
$
$
$
73,244
57,321
68,901
2003
- $
- $
- $
96,404
76,428
88,008
$
$
$
73,244
57,032
70,349
2004
- $
- $
- $
98,430
76,139
89,456
% Change
1.2%
-0.4%
1.8%
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
(c)
(d)
INTERNET & E-COMMERCE ©
Title
Senior Internet/Intranet Developer
Internet/Intranet Developer
Internet/Intranet Administrator
Electronic Data Interchange (EDI) Specialist
E-Commerce Analyst
E-Mail/Groupware Administrator
$
$
$
$
$
$
78,165
59,348
61,953
63,111
67,454
54,137
2003
- $
- $
- $
- $
- $
- $
107,405
85,403
87,140
85,113
101,615
77,586
$
$
$
$
$
$
77,876
59,058
57,032
61,374
66,006
54,716
2004
- $
- $
- $
- $
- $
- $
111,168
83,955
82,508
85,113
97,272
77,297
% Change
1.9%
-1.2%
-6.4%
-1.2%
-3.4%
0.2%
NETWORKING/TELECOMMUNICATIONS (d)
Title
Network Architect
Network Manager
Network Engineer
LAN Administrator
LAN/WAN Administrator
Telecommunications Manager
Telecommunications Specialist
$
$
$
$
$
$
$
81,060
74,691
71,217
52,689
55,005
78,455
57,321
2003
- $
- $
- $
- $
- $
- $
- $
121,880
102,483
101,904
76,139
76,718
102,773
83,087
$
$
$
$
$
$
$
82,508
74,112
70,349
50,663
54,137
76,428
54,426
2004
- $
- $
- $
- $
- $
- $
- $
120,722
99,878
100,167
72,375
78,165
99,009
77,586
% Change
0.1%
-1.8%
-1.5%
-4.5%
0.4%
-3.2%
-6.0%
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.
Salaries for IT Professionals - CA
OPERATIONS
Title
Senior Manager
Manager
Computer Operator
(e)
(f)
$
$
$
2003
70,349 - $
59,058 - $
32,714 - $
SECURITY (e)
Title
Data Security Analyst
Systems Security Administrator
Network Security Administrator
$
$
$
2003
75,849 - $
75,270 - $
72,375 - $
SOFTWARE DEVELOPMENT (f)
Title
Product Manager
Pre- and Post-Sales Consultant
Product Support
Software Engineer
Developer
$
$
$
$
$
90,614
61,953
52,110
74,402
63,690
2003
- $
- $
- $
- $
- $
$
$
$
2004
69,770 - $
58,190 - $
32,135 - $
103,062
106,247
102,194
122,748
88,008
75,560
112,326
101,615
95,246
77,586
44,583
96,114
78,165
45,741
% Change
0.2%
-0.2%
0.7%
$
$
$
2004
77,586 - $
76,428 - $
72,665 - $
105,089
105,957
101,904
% Change
2.1%
0.5%
0.0%
$
$
$
$
$
88,587
59,927
50,084
72,375
62,822
2004
- $
- $
- $
- $
- $
118,985
86,850
72,954
109,721
102,773
% Change
-2.7%
-2.1%
-3.6%
-2.5%
-0.2%
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.
Salaries for IT Professionals - CA
TECHNICAL SERVICES, HELP DESK & TECHNICAL SUPPORT (g)
Title
2003
Manager
$
73,244 - $
Desktop Support Analyst
$
44,041 - $
Systems Administrator
$
56,742 - $
Help Desk Tier 1
$
31,845 - $
Help Desk Tier 2
$
39,083 - $
Help Desk Tier 3
$
49,215 - $
Technical Writer
$
50,373 - $
Instructor/Trainer
$
50,373 - $
PC Technician
$
34,451 - $
Mainframe Systems Programmer
$
61,664 - $
Disaster Recovery Specialist
$
66,585 - $
(g)
104,510
77,876
81,350
45,162
49,794
65,427
74,691
76,139
50,084
79,613
102,773
$
$
$
$
$
$
$
$
$
$
$
69,480
54,426
55,295
30,687
37,056
47,768
49,505
50,663
33,003
59,058
68,322
2004
- $
- $
- $
- $
- $
- $
- $
- $
- $
- $
- $
98,430
75,270
79,902
43,136
48,636
61,085
74,402
72,086
48,057
77,876
103,062
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.
% Change
-5.5%
-5.3%
-2.1%
-4.1%
-3.6%
-5.1%
-0.9%
-3.0%
-4.1%
-3.1%
1.2%