Market Review
A presentation
January 2003
IT Industry
What is going on in the IT Industry?
Projected Market Strengths
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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
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Consulting
e-Commerce
ERP
CRM
PC hardware and software
Workstations
Fixed network infrastructure
Business communications
Mobile terminals
What is Most Important to
any Organisation
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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 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)
Focus on Recruitment
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Current market
Skills
Advertising
Salaries
Costs
Career motivators
Retention
Current Market
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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
Skills – Supply and Demand
Skills in most demand
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10.
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C++
SQL
UNIX
Oracle
VB
Java
C
Windows NT
Office
TCP/IP
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C++
UNIX
SQL
Java
Oracle
VB
HTML
Windows NT
TCP/IP
SQL Server
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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
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2002 - 9
2001 - 25
2000 - 49
1999 - 68
Methods Considered Best when Looking
for a Job within IT/Computing
21%
Recruitment consultant/agency
Specialist IT web site
20%
Word of mouth/through
friends/colleagues
15%
Computer/IT publications
14%
13%
Local/regional newspapers
National newspapers
Contacting potential employer direct
5%
4%
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
Q1 2002 Q1 2001 % Change
Systems 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%
Recruitment Costs
• Buyers market
• Renegotiation of fees/contractor rates and margins
• Shift of contract headcount to permanent - reduce
costs
• Advertising costs levelled
Career Motivators
Personal ambition/achievement
Financial/money
Enjoyment/satisfaction
Progression of tech
Gaining IT knowledge
Commitment to company
Challenge
Interest
Customer focus
Team building
Opportunity
0%
21%
7%
27%
26%
17%
9%
11%
14%
7%
8%
7%
< 20 Yrs
3%
5%
2%
6%
1%
6%
5%
2%
4%
3%
10%
32%
21+ Yrs
20%
30%
40%
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
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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