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Inland Empire CIO Roundtable Inland Empire CIO Roundtable “Career Trends in IT” “Career Trends in IT”

Opening Presentation by:

John Pringle

Sr. VP, Western Region

RCM Technologies (USA), Inc.

The Source of Smart Solutions

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Who is RCM Technologies ?Who is RCM Technologies ?

RCM Technologies (USA), Inc. is a leading provider of RCM Technologies (USA), Inc. is a leading provider of

information technology and engineering solutions to the information technology and engineering solutions to the commercial and government sectors for more than 30 commercial and government sectors for more than 30 years. years.

RCM's diverse service offerings enable its customers to RCM's diverse service offerings enable its customers to adapt and deploy advanced technologies that result in adapt and deploy advanced technologies that result in achieving business success for industry and achieving business success for industry and government.government.

The Source of Smart SolutionsThe Source of Smart Solutions

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Founded in 1971 - a repeated record of growth and profitabilityFounded in 1971 - a repeated record of growth and profitability

2003 Annual Sales Volume: $207,000,0002003 Annual Sales Volume: $207,000,000

Geographic Presence: 37 branches in 12 statesGeographic Presence: 37 branches in 12 states

Smart Shore Facilities: Canada, Poland and India (multiple) Smart Shore Facilities: Canada, Poland and India (multiple)

Number of employees: Billable (IT & Engineering) 1,300 - Full Time Staff - Number of employees: Billable (IT & Engineering) 1,300 - Full Time Staff - 240 240

Government Security Clearance: Top Secret – Orange Branch Government Security Clearance: Top Secret – Orange Branch

Publicly-traded on NASDAQ as RCMTPublicly-traded on NASDAQ as RCMT


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 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

• -2

•

• 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 ProcessRCM’s Recruiting Process

• Workflow Systems• Assign Recruiter(s)• Qualify Resumes

• Source Candidates • Create Candidate Profile

• Check References • Conduct Technical Interview

•Complete Phone Screen• Conduct Initial Interview (face to face)

Submit Candidate• Client• A/E

Engagement Initiation Process

National

Databas

e

& Tools

Repeatable ProcessesUnderstanding the

Total Require

ment Ensuring

Success

Foundation for Success

Employment Trends Post .com Bomb Employment Trends Post .com Bomb

Percentage of IT Operating Budget Percentage of IT Operating Budget Devoted to Internal StaffDevoted 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

•

• Gartner’s annual IT staffing survey

Employment Trends Past Three YearsEmployment 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 Current Employment Trends

2004 will be a Transitional Year2004 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 2004Employment 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 2004Employment 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 What are the skill sets employers are looking for? 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 – CATop 25 Most Active Employers – CANumber of Job Postings – Oct. 2003 Number of Job Postings – Oct. 2003

1. Kaiser Permanente2. Tenet Healthcare3. Raytheon4. Stanford Medical 5. Boeing6. Cingular7. Sprint8. Northrop Grumman9. Scripps10. Sutter Health11. Washington Mutual12. E-Bay13. Deloitte & Touche14. Lockheed Martin 15. US Navy16. Sun Microsystems17. AT&T18. US Air force 19. Target Corporation20. Verizon 21. Intuit Inc.22. Yum! Brands23. Mervyn’s24. Pfizer25. Warner Bros.

209129861982887775753642626617538521503369367358333318297289284272220207205189

Employment Trends 21Employment Trends 21stst Century Century

Hot Careers for the 21Hot Careers for the 21stst Century 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 – Offshore – What should you do about it? 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 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 General Tips for Managing IT Careers 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 Appendix

Vice President of Information Systems 127,670$ - 182,964$ 125,064$ - 180,069$ -1.8%Vice President of Technology 123,617$ - 178,911$ 103,751$ - 174,569$ -2.6%Information Systems (IS) Manager 95,825$ - 136,065$ 81,501$ - 131,723$ -2.5%

APPLICATIONS DEVELOPMENT (a)Title % ChangeManager 89,456$ - 125,064$ 87,719$ - 121,880$ -2.3%Project Manager 83,955$ - 110,589$ 81,639$ - 107,115$ -3.0%Project Leader 71,796$ - 94,667$ 71,217$ - 94,088$ -0.7%Systems Analyst 72,086$ - 101,615$ 70,638$ - 98,141$ -2.8%Programmer/Analyst 59,637$ - 93,219$ 58,769$ - 92,930$ -0.8%Applications Architect 83,376$ - 118,406$ 84,824$ - 120,722$ -1.9%Business Systems Analyst 63,980$ - 92,640$ 63,401$ - 91,772$ -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.

2003 2004

Salaries for IT Professionals - CA

(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 TechnologyNOTE: Salary ranges provided reflect averages for Los Angeles, San Francisco, Sacramento, San Jose and San Diego.

(b) Add 5-7% for IBM DB2 database skills, 8-10% for Oracle database skills and 5-7 % for SQL Server database skills.



CONSULTING & SYSTEMS INTEGRATIONTitle % ChangeDirector 99,009$ - 143,013$ 98,430$ - 141,566$ -0.8%Practice Manager 101,036$ - 130,275$ 100,167$ - 129,696$ -0.5%Project Manager/Senior Consultant 87,140$ - 114,063$ 86,271$ - 113,195$ -0.9%Staff Consultant 63,980$ - 86,561$ 62,532$ - 85,113$ -1.9%Package Implementation Specialist 72,954$ - 105,089$ 72,665$ - 103,352$ -1.1%ERP Integration Manager 88,298$ - 122,169$ 87,719$ - 121,011$ -0.8%

DATA/DATABASE ADMINISTRATION (b)Title % ChangeDatabase Manager 94,956$ - 129,407$ 93,219$ - 126,222$ -2.2%Database Developer 78,455$ - 116,379$ 75,560$ - 113,484$ -3.0%Database Administrator 80,771$ - 117,827$ 77,586$ - 113,195$ -3.9%Database Analyst 68,322$ - 92,640$ 67,454$ - 92,351$ -0.7%Data Architect 87,429$ - 124,485$ 88,877$ - 122,169$ -0.4%Data Modeler 77,007$ - 102,194$ 77,007$ - 102,773$ -0.3%Data Warehouse Manager 92,640$ - 121,011$ 94,377$ - 121,301$ -0.9%Data Warehouse Analyst 81,060$ - 107,115$ 81,639$ - 106,247$ -0.2%Capacity Planner 79,613$ - 109,721$ 77,007$ - 106,826$ -2.9%

QUALITY ASSURANCE (QA) & TESTINGTitle % ChangeQA/Testing Manager 73,244$ - 96,404$ 73,244$ - 98,430$ 1.2%QA Associate/Analyst 57,321$ - 76,428$ 57,032$ - 76,139$ -0.4%Systems Auditor 68,901$ - 88,008$ 70,349$ - 89,456$ 1.8%

2003 2004

2003 2004

2003 2004

(c) 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.

(d) 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.



INTERNET & E-COMMERCE ©Title % ChangeSenior Internet/Intranet Developer 78,165$ - 107,405$ 77,876$ - 111,168$ 1.9%Internet/Intranet Developer 59,348$ - 85,403$ 59,058$ - 83,955$ -1.2%Internet/Intranet Administrator 61,953$ - 87,140$ 57,032$ - 82,508$ -6.4%Electronic Data Interchange (EDI) Specialist 63,111$ - 85,113$ 61,374$ - 85,113$ -1.2%E-Commerce Analyst 67,454$ - 101,615$ 66,006$ - 97,272$ -3.4%E-Mail/Groupware Administrator 54,137$ - 77,586$ 54,716$ - 77,297$ 0.2%

NETWORKING/TELECOMMUNICATIONS (d)Title % ChangeNetwork Architect 81,060$ - 121,880$ 82,508$ - 120,722$ 0.1%Network Manager 74,691$ - 102,483$ 74,112$ - 99,878$ -1.8%Network Engineer 71,217$ - 101,904$ 70,349$ - 100,167$ -1.5%LAN Administrator 52,689$ - 76,139$ 50,663$ - 72,375$ -4.5%LAN/WAN Administrator 55,005$ - 76,718$ 54,137$ - 78,165$ 0.4%Telecommunications Manager 78,455$ - 102,773$ 76,428$ - 99,009$ -3.2%Telecommunications Specialist 57,321$ - 83,087$ 54,426$ - 77,586$ -6.0%

2003 2004

2003 2004

(e) Add 10-15% for Cisco Certified Internetwork Expert certification and 5-7% for UNIX administration skills.(f) 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.



OPERATIONSTitle % ChangeSenior Manager 70,349$ - 95,246$ 69,770$ - 96,114$ 0.2%Manager 59,058$ - 77,586$ 58,190$ - 78,165$ -0.2%Computer Operator 32,714$ - 44,583$ 32,135$ - 45,741$ 0.7%

SECURITY (e)Title % ChangeData Security Analyst 75,849$ - 103,062$ 77,586$ - 105,089$ 2.1%Systems Security Administrator 75,270$ - 106,247$ 76,428$ - 105,957$ 0.5%Network Security Administrator 72,375$ - 102,194$ 72,665$ - 101,904$ 0.0%

SOFTWARE DEVELOPMENT (f)Title % ChangeProduct Manager 90,614$ - 122,748$ 88,587$ - 118,985$ -2.7%Pre- and Post-Sales Consultant 61,953$ - 88,008$ 59,927$ - 86,850$ -2.1%Product Support 52,110$ - 75,560$ 50,084$ - 72,954$ -3.6%Software Engineer 74,402$ - 112,326$ 72,375$ - 109,721$ -2.5%Developer 63,690$ - 101,615$ 62,822$ - 102,773$ -0.2%

2003 2004

2003 2004

2003 2004

(g) 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.



TECHNICAL SERVICES, HELP DESK & TECHNICAL SUPPORT (g)Title % ChangeManager 73,244$ - 104,510$ 69,480$ - 98,430$ -5.5%Desktop Support Analyst 44,041$ - 77,876$ 54,426$ - 75,270$ -5.3%Systems Administrator 56,742$ - 81,350$ 55,295$ - 79,902$ -2.1%Help Desk Tier 1 31,845$ - 45,162$ 30,687$ - 43,136$ -4.1%Help Desk Tier 2 39,083$ - 49,794$ 37,056$ - 48,636$ -3.6%Help Desk Tier 3 49,215$ - 65,427$ 47,768$ - 61,085$ -5.1%Technical Writer 50,373$ - 74,691$ 49,505$ - 74,402$ -0.9%Instructor/Trainer 50,373$ - 76,139$ 50,663$ - 72,086$ -3.0%PC Technician 34,451$ - 50,084$ 33,003$ - 48,057$ -4.1%Mainframe Systems Programmer 61,664$ - 79,613$ 59,058$ - 77,876$ -3.1%Disaster Recovery Specialist 66,585$ - 102,773$ 68,322$ - 103,062$ 1.2%

2003 2004

Documents

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