Date: Sat, 13 Sep 2003 08:55:01 -0400
From: "Wayne Hicks \(BDPA\)"
Subject: "Technology Sector Sheds 282,000 jobs in 2002"

BDPA Members & Supporters,
Here is an interesting commentary on the current IT job situation. This
type of information is shared regularly in our Outsourcing Special Interest
Group (O-SIG). Feel free to join. Just click here -->

http://groups.yahoo.com/group/bdpa-outsourcing-SIG

peace...
Wayne Hicks, President-Elect
National BDPA * www.bdpa.org
phone: (877) 255-2684
email: whicks@bdpa.org


-----Original Message-----
By Matthew Moran
The I.T. Career Builder's Toolkit

"Technology Sector Sheds 282,000 jobs in 2002"

You may have seen this article. When it appeared on MSNBC-TV and
other sites I heard a collective shiver from the IT community. Those
desiring to break into IT saw this as the kiss of death. Those
already in it wondered if their job was next.

On discussion forums a myriad of panic-stricken folks bemoaned the
end of the tech sector.

They blamed Al Qaeda, Iraq, President Bush, India, newbies, and
incompetent management. Many indicated that they were going back into
accounting, retail, manufacturing, and even petty theft.

It's not that I don't sympathize. It isn't that I don't understand
the struggle. However, let's make sure we keep some perspective. Just
a bit; too much perspective is as crippling as too little.

282,000 does not equal net 282,000
I know, you think reverting back to that whole "new math" debacle of
the 80s. Au contraire.

First, you have to understand that although 282,000 jobs were "lost",
the work required was not. Many companies drop head count and then
outsource. It creates fluid cash flow and does an amazing thing to
their books.

Full-time employees are a fixed cost, week after week. Contractors
and outsourcing engagements are variable costs – here today, gone
tomorrow. I know of four programmers who were let go this past year,
they are part of that 282,000. However, unreported and more difficult
to track is that each of them was offered a full- or part-time
contract at a higher hourly rate.

Now, that still doesn't renounce the fact we're in a negative
economic cycle. I just want to point out why the "funny" math is
important. Given the opportunity each of those four programmers
mentioned above would rather have the "security" of their old
position: We will overlook the interesting definition of "security"
their situation creates.

Secondarily, the times, they are a changin'. This, by the way, is
always the case. Yes, the times are changing. Companies are
outsourcing – and not just to India – more than ever. We are entering
a time of extreme fluidity in the IT sector. What does that mean?

Companies are interested in hiring talent, not people. Yes, I know
the talent comes in the form of people, but hear me out. They will
hire staff technologists for day to day maintenance and help desk but
many new projects will go to project teams hired for the skill and
then disbanded when not needed. Companies have figure out that paying
for performance is better than paying for training and unproven
commodities.

So what does that mean?

Simply this: If you wish to take part in what author Bruce Tulgan
refers to as "The Talent Wars", you had better get some talent. I
know, you're stuck in the "need experience to get experience"
dilemma. Here is my advice:

First, learn transcendent skills, those that are not tied to a given
technology. Communication: Written and verbal, and conceptual
business knowledge are good places to start.

Second, understand that new technology is rarely new. Take conceptual
knowledge from one technology to the other so you are not relearning
everything from scratch. In short, all operating systems are the
same, all hardware platforms are the same. I know there are purists
who will take exception to that, but those who adopt this way of
thinking create many more options and opportunities for themselves.

– Matthew Moran is an author and technology consultant based in
Scottsdale, Ariz. His unique focus and approach to consulting –
Concept Over Process – has helped him develop business solutions for
a variety of industries and companies. He has developed, "The IT
Career Builder's Seminar," and its companion book, "The IT Career
Builder's Toolkit: The Insider's Guide to Building Your Technology
Career in Any Economy."