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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
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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
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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:
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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.
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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
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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
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2009 ConsultNet Technology Stafng Outlook
49%
46%
46%
44% 10%
18%
15%57%
36%
28%
43% 8%
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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.
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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
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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
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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
ConsultNet Recommendations:
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/
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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
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2009 ConsultNet Technology Stafng Outlook
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.
ConsultNet Recommendations:
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/
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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.
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2009 ConsultNet Technology Stafng Outlook
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.
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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.
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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
2009 ConsultNet Technology Stafng Outlook
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.
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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.
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9%
6%
8%
5%
41%
37%58%
52%
53%
40%
38%
53%
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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.
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32% 4%64%
67%
25%
29%
59%16%
61%
13%20%
10%
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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.
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27%
45%
32%
25%
41%
41%
45%
29%
28%
27%
30%
30%
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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.