2009 technology staffing outlook

8/14/2019 2009 Technology Staffing Outlook

1/17

NOW IS THE TIME2009 ConsultNetTechnology Stafng Outlook

Caliornia Oce Colorado Oce Texas Oce Utah Oce National OcePhone: 949.242.3522 Phone: 303.759.4440 Phone: 214.461.1720 Phone: 801.208.3700 Phone: 888.215.9675

www.consultnet.com


2/17

Dedicated Proessionals Creating Business Success

TABLE OF CONTENTS2009 ConsultNet Technology Stafng Outlook

Overview................................................................................................................................................ 1

IT Spending and Stang Projections or 2009................................................................................ 1-4

ConsultNet Hiring Manager Survey & Analysis.............................................................................. 3

Whats Hot or 2009: Aligning Skills with Upcoming IT Trends..................................................... 5-6

A Supplemental Workorce Keeps Projects Moving During an Economic Slowdown............ 7-9

Communication is Key......................................................................................................................... 10-11

Addendum 1: Orange County, Caliornia IT & Engineering Forecast........................................... 12

Addendum 2: Denver, Colorado IT & Engineering Forecast......................................................... 13

Addendum 3: Dallas, Texas IT & Engineering Forecast................................................................ 14

Addendum 4: Utah IT & Engineering Forecast............................................................................... 15


3/17


NOW IS THE TIME.2009 ConsultNet Technology Stafng Outlook

Overview

News headlines tell us economic times are tough, but now is not the time or standing on the sidelines hoping

to make it through the year. Now is the time to take advantage o your competitors, many o which are waiting

or times to improve, and leap-rog ahead. Recessionary conditions are ripe with opportunity to orge career

paths and strengthen business strategies. In the ollowing report, ConsultNet provides a concise outlook or

the Inormation Technology and Engineering industries in 2009 and oers suggestions to IT proessionals andorganizations alike on how to take advantage o the opportunities still available.

IT Spending and Stafng Projections or 2009

Despite the doom and gloom message o the current economy taking center stage, we need to look deeper at

how decision-makers are responding to current economic conditions to ully understand what to expect or the

coming year. A recent survey conducted by Computer Economics questioned IT executives about their spending

plans or 2009. The results o the survey paint an interesting picture:

-1-

1 http://www.computereconomics.com/article.cm?id=14092 2009 IT Spending Forecast: No Growth

http://www.computereconomics.com/article.

cm?id=1409&tag=rbspot

More IT organizations are cutting IT spending

this quarter than was the case earlier this year,

but the cost-cutting is not nearly as draconian as

one might assume by reading the business news

headlines. Furthermore, IT spending cuts do not

include widespread reduction in IT stang levels.

Essentially, at the median, IT executives expect

IT spending and stang growth to both be fat in

2009.1

To help illustrate how the turmoil in the nancial

markets has aected IT spending and stanglevels, Computer Economics surveyed IT

organizations to provide a quick glimpse o how

their budgets were currently being aected2.


4/17

2009 ConsultNet Technology Stafng Outlook

This survey helps prove two things. First, that its not time to panic. Budget cuts are being made, but not

drastically enough to oresee any major IT unemployment crisis. Second, stagnating IT budgets present IT execs

and proessionals with an opportunity to prove how their skills are vital to an organizations success.

In addition, according to the Computer Economics survey, 39% o IT organizations are adding to their sta levels

this year, while 24% are cutting IT sta headcounts. In comparison to last years study, 52 % were increasing

sta levels and only 16% were reducing headcount3.

Although current studies and analysis demonstrate that IT stang and spending are not expected to see much

growth in 2009, the act that drastic cuts arent on the horizon is good news not only or the IT industry, but the

economy at large.

Technology analysts agree that spending on technology products and services will continue to grow next year

just at a slower pace.

Although all the economic orecasts went rom up slightly to down drastically in a matter o days, the good

news is that IT is in a better position than ever to resist the downward pull o a slowing economy, said

John Gantz, chie research ocer at IDC. Technology is already deeply embedded in many mission-critical

operations and remains critical to achieving urther eciency and productivity gains. As a result, IDC expects

worldwide IT spending will continue to grow in 2009, albeit at a slower pace. 4

IDC analyst Stephen Minton also reports that tech spending is actually aring better this time around than it didin the previous downturn, ollowing the Sept. 11 attacks. The recession o 2001 and 2002 ollowed a tech bubble

that was characterized by companies overspending on technology products. This time around, however, there is

no such bubble to burst. So while companies are scaling back technology spending as part o broader cutbacks

in response to the recession, they still tend to see technology investments as an important part o their business.

3 IT Spending, Stang & Technology Trends: 2008/2009

http://www.computereconomics.com/temp/ISS2008Ch1ExecSum072508.pd4 http://www.idc.com/getdoc.jsp?containerId=prUS21517508

-2-


5/17

ConsultNet Survey & Analysis

OVERALL IT & ENGINEERING FORECAST

In May 2009 ConsultNet conducted its own survey o Hiring Managers or IT- and Engineering- related

workers in our geographies including, Orange County, Cali., Denver, Colorado, Dallas, Texas and Utah. The

questions were aimed at identiying hiring and budget trends in the marketplace. Overall ndings indicatethat hiring managers eel that their budgets and headcount will stabilize and increase looking ahead to the

next six months o 2009.

Under Budget, survey participants indicate an overall improvement o more than 20 percent in their budgetexpectations, including seven percent who expect a budget increase, an increase o 14 percent who expect

budget to have no change and a signicant 21 percent less hiring managers expect to decrease in the next

six months, when compared the past six months.

Under Headcount, ConsultNet ound those surveyed expect a shit rom a decreased headcount to hiringtrends to round out 2009. Eight percent o those surveyed who had experienced headcount cuts during the

past six months now report expecting their headcount to increase over the next six months. A stable 46percent saw no change in the past, and still expect no change or the next six months.

*Data and analysis or specic geographies can be ound in Addendums 1 through 4

-3-


49%

46%

46%

44% 10%

18%

15%57%

36%

28%

43% 8%


6/17

ConsultNet Recommendations:

Theres no denying that economic times

are more challenging this year; however,technology proessionals and employers

need to ocus on the many opportunities that

still exist. These additional pressures should

be the catalyst or improving technology,

communication and interpersonal skills

which will benet individuals or the duration

o their careers. Additionally, tighter purse

strings can mean more creative planning and

better resource management or IT execs

management techniques that will benet

organizations or years to come.

The news or the IT industry is good. ConsultNet is still experiencing a growing number o orders or technology

proessionals, which refects how there is still a strong demand or experienced, talented IT pros, said Spencer

Shaer, President o ConsultNet. Hiring managers can also reap many rewards during this time because when

more candidates enter the market, they can assemble a strategic team that can help grow their business.

-4-



7/17


Whats Hot or 2009: Aligning Skills with Upcoming IT Trends

We are now a Web 2.0 world and companies are scrambling to meet the technological expectations the public

demands. To stay valuable (and employable), IT proessionals need to keep their knowledge and skills up-to-date

with these latest technological trends.

The ollowing lists are rom research rm Gartner Inc. and CIO Insight detailing what they believe are the 2009

technologies that will impact an organizations long-term plans and revenue.

Gartners Top 10 Strategic Technologies or 20095 CIO Insights Top 10 Technologies that Drive Revenue6

1. Virtualization 1. Service-oriented architecture

2. Cloud Computing 2. Rich Internet Applications3. ServersBeyond Blades 3. Unied Communications

4. Web-oriented architectures 4. Smart Phones and Mobile Clients

5. Enterprise Mashups 5. AJAX

6. Specialized Systems 6. Application Virtualization

7. Social Sotware and Social Networking 7. Storage Virtualization

8. Unied Communications 8. Wikis

9. Business Intelligence 9. RFID/Wireless Sensors

10. Green IT 10. Social Networking

5http://www.gartner.com/it/page.jsp?id=7772126http://www.cioinsight.com/c/a/Technology/Revenue-Driving-Technologies/7IT Spending, Stang & Technology Trends: 2008/2009

http://www.computereconomics.com/temp/ISS2008Ch1ExecSum072508.pd

-5-

Although they may be labeled dierently, several technologies

virtualization, Internet apps, social networking and unied

communicationsappear on both lists, which is a strong indication

that IT proessionals with experience in these elds will be in high

demand.

To shed additional light on what skills and services will weigh heavily

on the minds on IT execs in the coming year, Computer Economics

also surveyed respondents about how their priorities were changing

this year. The top ve objectives are shown below7:

1. Improve IT service level perormance2. Improve disaster recovery capabilities

3. Increase IT security

4. Reduce the cost o ongoing IT maintenance & support

5. Improve the skills o IT sta


8/17


These priorities also ring true or the executives surveyed by CIO Insight. According to their study, the ollowing

are the Top CIO Priorities or 20098

1. Improve business processes

2. Deliver better customer service3. Cutting costs

4. Generating more business rom new and current customers

5. Innovative new products/services


Stay SharpTheres a common misperception that only the newest, hottest technology skill sets are in demand, but com-

panies still need people who are knowledgeable about the technology that serves as a oundation or the latest

and greatest developments, Shaer notes. IT pros need to make sure their existing skills stay sharp, but keep

abreast o the progress being made in their particular eld.

Prove Your Value2009 is a great year to break out rom the pack and prove your value to your boss and your organization. One way

to do this is to take on new, challenging projects. This will not only broaden your skill sets, but give you access

to high-level meetings, customers, trainings and resources that you wouldnt access in more mundane assign-

ments. Although taking on tougher assignments is a risk, this strategy can give IT pros the recognition they need

to secure a position during tough times.

8http://www.cioinsight.com/c/a/IT-Management/Top-CIO-Priorities-or-2009/

-6-


9/17

A Supplemental Workorce Keeps Projects Moving During an Economic Slowdown

IT executives may eel their departments are especially vulnerable in this time o shrinking corporate budgets.

Rather than worry, IT execs can take advantage o some o the opportunities this recession presents. For exam-

ple, with hiring at a standstill in many organizations, companies that do have open positions or IT proessionals

are in a better position now, than in years past, to nd a qualied candidate.

In previous years, organizations struggled to nd IT talent as technology proessionals were in short supply.

However, with the possibility o an increasing talent pool due to budget constraints, 2009 may be the ideal time to

nd the technology talent that might otherwise be in short supply.

The stang challenges presented by todays economic situation can also be a conduit to explore a supplemen-

tal and fexible workorce solution. Supplemental workorces consist o temporary and highly-skilled workers,

particularly consultants specializing in a specic eld, to help reduce the strain placed on ull-time sta.

As evidenced by the ollowing graphic, although business executives are unwilling to add ull-time IT sta, they

are willing to outsource as a strategy to meet demands during fuctuating IT cycles9.

Every company has aspects o their business that fuctuate with highs and lows. Its during these highs whena supplemental workorce is the answer, notes Shaer. For example, when a new product is developed, there

are dierent stages o development, and each stage requires a dierent expertise. Once the product is com-

pleted, there is no longer a use or many o these people, so they get laid o. There is a high cost or this employ-

ment strategy as the employer pays or the recruitment, benets and severance o the employee. They are still

using a fexible workorce, just at a higher cost.

9IT Spending, Stang & Technology Trends: 2008/2009

http://www.computereconomics.com/temp/ISS2008Ch1ExecSum072508.pd

-7-



10/17


IDC Analysts have similarly concluded that the outlook or outsourcing in 2009 in extremely positive.

Although things look gloomy or the larger global economy, the outsourcing market represents a dichotomy: on

the downside, organizations cost-cutting outsourcing strategies may negatively impact market growth, but atthe same time, the upside is that outsourcing will be adopted by more organizations to help them work through

nancial and competitive challenges, said Allie Young, vice president and distinguished analyst at Gartner. The

well-educated buyer and provider will have the advantage. The potential or outsourcing to address immediate

cost pressures as well as long-term recovery goals will be unprecedented. However, only organizations that

are diligent about understanding and avoiding the pitalls o cost-ocused outsourcing and that apply business-

outcome-ocused outsourcing will be successul.


Use a Supplemental WorkforceNow is the time to secure a stang strategy to stay ahead o the competition and ensure your organization is

ready when economic conditions improve. The best way to do this is through using a supplemental and fexible

workorce.

One o the toughest stang challenges is nding the right person or a specic job. Thats when outsourcing IT

stang can solve a variety o problems, Shaer said. First, stang organizations have an expansive network

o IT pros and can nd a match to a specic need. Second, the time that would have been invested into nding

the right person can now be spent on more critical matters.

10 http://www.gartner.com/it/page.jsp?id=856713&ormat=print11 http://www.bls.gov/spotlight/2008/older_workers/

-8-

Dont Overlook the Retired Workforce

One o todays most sought-ater technologytalent pools is the aging workorce. The Bu-

reau o Labor Statistics recently reported that

over the last 30 years employment o workers

65 and older has increased by 101%.

The aging workorce are ideal candidates

or consulting work because they have

decades o experience and knowledge that

many organizations are eager to tap into,

said Shaer. Additionally, consultants can

choose their own hours and the projects theywork on, giving these retirees the fexibility

they desire.


11/17


Shaer notes that certain areas o expertise are especially well-suited or consulting work, Technology is an

area where we are seeing a huge gap in the need or qualied IT talent versus available proessionals. People

with specialized IT skills are in demand and can do very well in consulting work. Retired technologists are being

sought ater because there simply arent enough qualied people to meet the demand.

The BLS has also reported that Baby Boomers are delaying retirement or re-entering the workorce at an

unprecedented rate o 80%. In addition, with benets shiting rom guaranteed pensions to 401Ks, workers are

anxiously trying to recover rom the economic downturn.

ConsultNet has seen a steady increase in the number o older consultants seeking work. Smart companies are

eager to oer positions to the 65 plus workorce because these are the people that have honed their manage-

ment and people skills, Shaer said.

-9-


12/17


Communication is Key

2009 is not a time or nail biting, but proving ones value to an organizations success. Although it may eel saerto stay out o the limelight in todays shity economic climate, its not a smart career move. Now is the time to

communicate knowledge and demonstrate value to help ensure a successul career path.

ConsultNets Recommendations:

Open CommunicationDuring this uncertain time, employees are obviously nervous about the uture o their jobs. Now is the time to

be as open as possible with regards to the health o the company, expectations or layos and perhaps most

importantly, how each department and employee can help. Many people today eel helpless with their ability to

infuence their own uture. By clearly communicating the companys challenges, opportunities & how they can

help the company stay healthy is not only empowering, but provides a peace-o-mind knowing where they stand.

When employees dont know whats going on, they assume the worst. Executives need to maintain constant

communication with employees and engage with the dierent teams within the company. This will help quell

rumors and keep sta calm and productive, notes Shaer.

Go to Bat (for yourself & your department)Many organizations today are evaluating what departments and individuals are adding value to the company.

Now, more than ever, is the time to clearly report on the value you personally & your department bring to the

company. Focus on highlighting quantitative ways in which you are saving the company money, and are improv-

ing productivity. The goal is to prove that you are an invaluable contributor to the companys short- and long-term success.

-10-


13/17

Caliornia Oce Colorado Oce Texas Oce Utah Oce National Oce

Phone: 949.242.3522 Phone: 303.759.4440 Phone: 214.461.1720 Phone: 801.208.3700 Phone: 888.215.9675

www.consultnet.com


IT managers earing budget or sta cuts need to make a case or IT being the companys backbone during

tough times, said Shaer. Executives also need to stress that IT has to maintain ahead o the curve so when

the recession is over, the company is innovative and ahead o the game.

ListenListening to employees and colleagues will help you determine where to invest your eorts to deliver the highest

value. Asking questions and allowing colleagues time to talk is also a sign o fexibility and willingness to learn.

Overall, remember it is vital to be open. Tell employees where you stand with protability, stang and what

needs to happen to ensure the company is healthy, said Shaer. Spell out specic milestones in terms o

product releases, xes, customer service, sales, etc. to empower employees with the means to control their own

uture & provide some peace o mind knowing exactly what to expect.

-11-


14/17


ADDENDUM 1: ORANGE COUNTY, CALIFORNIA IT & ENGINEERING FORECAST

In ConsultNets analysis o the surveys collected rom Orange County, Cali. IT and Engineering Hiring

Managers, a moderate improvement in budget expectations, and a slow, but positive improvement in headcount

expectations was ound.

Under Budget, hiring managers experienced a 58 percent budget decrease during the past six months, but only53 percent expect a budget decrease over the next six months a ve percent improvement. We also see a our

percent improvement o budget expectations o no change. Finally one percent more o those surveyed expect

their budget to increase over the next six months, compared to the previous period.

Under Headcount, expectations nearly matched the perormance o the past six months, with only a two percentpoint movement in any direction. Overall, nine percent o IT and Engineering Hiring Managers expect to increase

headcount, 38 percent expect no change in headcount, and nally 53 percent expect a headcount decrease over

the next six months.

-12-

9%

6%

8%

5%

41%

37%58%

52%

53%

40%

38%

53%


15/17


ADDENDUM 2: DENVER, COLORADO IT & ENGINEERING FORECAST

For the Denver-area survey, ConsultNet sees signicant improvements in both budget and headcount (+9% and

+15% respectively) expectations among IT and Engineering Hiring Managers. Additionally, the percent o thosesurveyed who expect more budget and headcount decreases dropped 12 percent and 13 percent respectively.

Under Budget, the expectations shited dramatically to a more positive outlook. Increased budget expectationsgrew nine percent, rom an actual our percent rom the previous six months to 13 percent looking ahead.

Additionally, the expectations or continued decreased budget dropped 12 percent, rom 32 percent to 20

percent, again indicating stabilization or budget growth or the remainder o 2009.

Under Headcount, 25 percent o survey respondents expect their headcount to increase over the next six months growing rom 15 percent over actual headcount during the past six months. Additionally only 16 percent

believe headcount will be cut during the next six months, as compared to 29 percent o actual headcount

decreases over the past six months an improvement o 13 percent in expectations.

-13-

32% 4%64%

67%

25%

29%

59%16%

61%

13%20%

10%


16/17


ADDENDUM 3: DALLAS-AREA, TEXAS JOB MARKET OUTLOOK

For the Dallas-area, Texas survey, ConsultNet did not see signicant shits in either budget or headcount con-dence or the remainder o 2009. While both decreases in budget and headcount remained the same when

comparing the past six months to the next six months, a slight shit towards greater stabilization with no change

in either was ound.

Under Budget, ConsultNet ound a slight improvement in no budget change expected o three percent. Thechange or expected budget increase actually dropped slightly at ve percent or the remainder o 2009. The

budget decrease held steady at 28 percent when comparing the past six months to the next.

Under Headcount, there was a our percent increase in expectations o no headcount change moving into thenal six months o the year. Keeping with the same trend as the budget expectations or the Dallas-area, survey

respondents indicated a slight drop o expected headcount increase o our percent.

It is worth noting that survey participants or this market included a higher number o government-related tech-

nical hiring managers when compared to the other ConsultNet market surveys, which may have skewed the

results slightly.

-14-

27%

45%

32%

25%

41%

41%

45%

29%

28%

27%

30%

30%


17/17


ADDENDUM 4: UTAH IT & ENGINEERING FORECAST

10%

55%15%

37%

34%

53%

8%

30%

44%

56%10%

48%

For the Salt Lake City, Utah survey, ConsultNet sees signicant and marked condence in both budget andheadcount areas or surveyed hiring managers going into the nal six months o 2009. The most dramatic

improvements include a 26 percent movement up in expected headcount increases, as well as a 20 percent

increase in expected budget increases over the next six months.

Under Budget, ConsultNet is seeing a signicant improvement across the board in terms o expectations. Forexample, those surveyed who expected a budget decrease dropped 38 percent, while there was a 20 percent

improvement in terms o expected budget increase or the next six months.

Under Headcount, 34 percent o survey respondents expect headcount to increase over the next six months, ascompared to only eight percent or the past six months a dierence o 26 percent. Additionally, only ten per-

cent expect budget decreases, a drop o 34 percent when compared to actual cuts during the past six months.Finally, there was an eight percent jump in expectations o no change in headcount, landing at 56 percent o

respondents who expect stability over the next six months.

2009 technology staffing outlook

Documents