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Market Review

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

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Market Review

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  1. Market Review A presentation January 2003

  2. IT Industry What is going on in the IT Industry?

  3. 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

  4. Current Market Weaknesses • Consulting • e-Commerce • ERP • CRM • PC hardware and software • Workstations • Fixed network infrastructure • Business communications • Mobile terminals

  5. What is Most Important to any Organisation • Email • Internet - intranets/extranets • System security • Increasing bandwidth • CRM is leaving ERP behind • Improving existing systems/developments

  6. 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)

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

  8. 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

  9. Skills – Supply and Demand Skills in most demand 2002 2001 2000 1. C++ C++ C++ 2. SQL UNIX UNIX 3. UNIX SQL SQL 4. Oracle Java Java 5. VB Oracle VB 6. Java VB Oracle 7. C HTML Windows NT 8. Windows NT Windows NT HTML 9. Office TCP/IP TCP/IP 10. TCP/IP SQL Server C

  10. Skills – Supply and Demand Skills most in supply Skill Salary 1. HTML £28,486 2. Windows NT £30,112 3. Unix £35,548 4. Java £32,244 5. MS Access £29,056 6. Oracle £35,909 7. MS Visual Basic £31,934 8. MS SQL Server £33,234 9. C++ £32,567 10. Javascript £30,676

  11. 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%

  12. Current Advertising Market Average number of pages Computer Weekly • 2002 - 9 • 2001 - 25 • 2000 - 49 • 1999 - 68

  13. Methods Considered Best when Looking for a Job within IT/Computing

  14. Future Advertising Market? • Internet - continues to develop • Companies - brand marketing • More multi-channel packages

  15. 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

  16. Advertised Salaries

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

  18. Career Motivators

  19. Retention Most leavers - push factor - poor management - low morale - one-offs Line managers have most influence on a companies ability to retain, not HR!

  20. 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

  21. 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

  22. Conclusion • There are jobs out there • Differentiate yourself • The IT market is not in depression - The boom is over • Good Luck

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