Market Review A presentation January 2003 IT

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 Logica. CMG – T/O £ 2 b, 24, 000 employees, 34 countries • Huge outsourcing deals, eg – Unilever o/s BT £ 640 m – Consignia o/s CSC £ 1. 5 b • Company ‘streamlining’, eg Sun • Business strategy (not IT strategy)

Focus on Recruitment • • Current market Skills Advertising Salaries Costs Career motivators Retention

Current Market • • • 1 m 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 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 2002 C++ SQL UNIX Oracle VB Java C Windows NT Office TCP/IP 2001 C++ UNIX SQL Java Oracle VB HTML Windows NT TCP/IP SQL Server 2000 C++ UNIX SQL Java VB Oracle Windows NT HTML TCP/IP C

Skills – Supply and Demand Skills most in supply Skill Salary 1. HTML 2. Windows NT 3. Unix 4. Java 5. MS Access 6. Oracle 7. MS Visual Basic 8. MS SQL Server 9. C++ 10. Javascript £ 28, 486 £ 30, 112 £ 35, 548 £ 32, 244 £ 29, 056 £ 35, 909 £ 31, 934 £ 33, 234 £ 32, 567 £ 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

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

Recruitment Costs • Buyers market • Renegotiation of fees/contractor rates and margins • Shift of contract headcount to permanent - reduce costs • Advertising costs levelled

Career Motivators

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’s Permanent 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