One of my clients remarked this week, “Is it pushing the barrow to say Happy New Year in February, or should I ask what you’re doing for Easter?” Well whichever greeting you choose you can be sure that the year has begun in earnest now that Christmas and school holidays have all but been erased from memory. And don’t get me started on the summer that never was!

So what will 2012 bring to the Technology recruitment market in Australia and how will businesses respond to the press’ latest catch phrase of a ‘two-speed economy’? The range of answers to this question varies hugely depending on your own personal levels of optimism, those of your collective Industry specialisation and further of your own business and its relative market status.

In this edition of the Ambition Technology Market Trends Report:

• Latest recruitment news
• Adding a video to your job application
• Redundancies and whether Technology workers should worry?
• Tablet uptake poised to dominate
• LAFHA and the on-hire community
• Industry Sector Update: Applications, Business Engagement, Infrastructure & Executive

As usual we are always keen to hear from you, please leave your comments, questions or suggestions in the comment section below.

Over the past twelve months, our Business Engagement team have noticed a clear distinction in relation to demand for resources within different industry sectors. Whilst the strains on the European Financial Market continue to deepen, the larger banking organisations especially those with a significant international presence are sitting tight, reticent to commit to large projects in 2012 until the true impact of the current financial storm are realised. On the other hand, there are a number of local financial services companies especially those in the insurance, mortgages and commercial finance industries, who are optimistic and are pushing ahead with core system replacement projects and ecommerce transformations to catch up with their peers in the banking industry. For many the opportunity cost of not having strong online presence and the lack of investment in newer technology platforms far outweighs the initial outlay for modernisation projects which will ultimately result in increased efficiency and greater opportunity for revenue generation.

Our Commerce and Industry clients in contrast have seen clear spikes in recruitment over the past twelve months with further large scale projects scheduled for next year. The trends in this sector are still very much in the pattern of acquisition and consolidation as some of Australia’s largest players come together with the likes of the acquisition of Franklins by MetCash and a number of conglomerates looking to consolidate their IT environments. Mining, Engineering and Energy companies are still hiring at a senior level, alongside construction and property companies. All indicators are that it will be a big year within the Telco space for large scale transformational projects across customer service and life-cycle management with analytics. Again in this sector trends are around mergers such as VHA and 3 Mobile which is driving consolidation of their platforms, upgrades and migration projects, alongside the ongoing NBN programme of work which continues to suck up resources. Project sizes within this space are ranging from $20M to $400M and anticipate to get underway in Q1 2012.

What Next?

The predicted trend in Q1 for programme / project management and business analysis resources is likely to mirror the disparity within the industry sectors we are currently noticing. Demand for senior level candidates across the project/program/change management, service delivery management and business analysis functions within non-banking sectors is likely to be strong for most of next year. We do not expect much movement in salaries or contractor rates but companies will look to non-cash benefits to attract people using the appeal of large scale technology investment, flexible working conditions and job security especially for most senior candidates.

Your Comments

Do you agree with my comments or want to offer a different perspective to salaries and/or trends in IT Business Engagement? If so please feel free to add your comments here or email me directly at martha.churchill@ambition.com.au

The application development & support market has remained in a positive position throughout this year with only the upcoming holiday period stalling the slow but steady momentum. We have seen demand in the usual areas predominantly led by .Net & Java but we are seeing most demand and probably the shortest supply in tier one ERP skills (mainly SAP & Oracle), Microsoft SharePoint, Front End Web and Mobile Development. With that in mind the demand for contractors skilled in Agile development methodology continues to rise, as companies move away from large scale in house software development programs in favour of quicker rapid deployment of products and services. When companies do commit to large scale software programs they are looking to utilise a combination of in house resources, contractors, local specialist service providers as well as global outsourcers. This creates greater spread of risk on key deliverables, flexibility with resources but major challenges in vendor management, accountability, communication and ultimately decision making.

Companies are increasingly looking at consolidated ERP systems with Oracle and SAP taking a majority market share but we have also seen a number of companies committing more capital expenditure to JDE, PeopleSoft and Seibel upgrades as in most cases they offer a much more cost effective solution rather than the larger investment needed to implement Oracle or SAP. You will see from our salary review that SAP Basis & Oracle Database Administrators have experienced the largest rate & salary increases due to high demand and increasingly low supply. We have also seen a similar trend in demand for HR/Payroll consulting skills across most of the major ERP products. Due to the shortage of available skills in this area we have seen companies bringing resources from overseas to meet demand on critical projects. As with any technology skills shortage there has been a large push from candidates looking to enter the contracting market in order to take advantage of higher daily rates, this in turn has led to a large number of permanent positions being left open for 6-12 months.

What Next?

For 2012 I expect to see consistent demand for enterprise software developers, mobile/web developers and in particular ERP specialists. Most of the major investment will come from the Banking & Finance, Insurance, Superannuation and Media industries as they look to modernise their service offerings and ability to interact with their increasingly technology demanding customers. I expect the size of internal software development and application support teams to stagnate or potentially diminish as companies continue to take advantage of developments in Cloud Computing (SAAS/PAAS), OpenSource/SOA and the economies of scale on offer from global software services companies especially those with offshore development centres. As with any trend towards outsourcing/offshoring we will see ICT providers moving quickly to snap up any available resources in order to build their resource capability but often to re-deploy these people back into sites where they have valuable IP and customer relationships.

 But don’t take my word for it, check out http://www.gartner.com/it/page.jsp?id=1535314 for the experts opinion.

Ambition 2012 Application Salary Guide

Do you agree with my comments or want to offer a different perspective to salaries and/or trends in software development? If so please feel free to add your comments here or email me directly at rory.herity@ambition.com.au

With 2011 drawing to a close it’s now a great time to reflect on those early year predictions to see just how right or wrong we got it. There is often a sense of market strength or weakness that permeates business confidence way before the figures and analysis come about to prove or disprove.

The Reserve Bank of Australia (RBA) earlier this month cited wages as one reason why it cut interest rates by a quarter point to 4.25%, the first easing in over two years. This was supported by comments on the marked slowdown of employment growth where market caution has seen the jobless rate climb up to 5.2%, from a low of 4.9% back in April.

Already the predictions for 2012 are coming thick and fast with the usual swing of opinion; from optimistic growth on the back of sustained demand from China for our resources, to pessimistic claims of decreased consumer spending, a failing housing market and ongoing effects of the European economic financial crisis.

Predictions aside you only have to ask the man on the street and they will support the ongoing caution and trepidation that has peppered this year’s economic performance. People are concerned, and perhaps more importantly for the first time people are now concerned about global economic data measures rather than those that relate solely to their own backyard.

So what should we expect in these uncertain times and can we take steps to prepare ourselves for the ongoing bumpy road we’ve come to expect of the last few years?

In this edition of the Ambition Technology Market Trends report:
• Recruitment/HR Issues – Hyper-connectivity & Recruitment
• Staying sane (and employed) through the Holiday Season
• Social Media: The ‘Tipping Point’ in the Recruitment Industry
• Recruitment Mobility
• Technology News
• Industry Sectors – Infrastructure, Applications, Business Engagement & Executive

As usual we are always keen to hear from you, please leave your comments, questions or suggestions in the comment section below.

  

The year is now in full swing and despite the worldwide market volatility of recent months; it’s still a pretty positive environment in which to operate a business here in Australia. This week saw the release of a number of pieces of positive data on the Australian economy.

Gross domestic product (GDP) rose by 1.2% in the three months to the end of June from the previous quarter, the ABS said. That compares with a contraction of 0.9% in the first three months of the year and an equivalent growth of 1.4% for the same period last year.

The Australian Bureau of Statistics said firms were planning to further invest A$149bn in the financial year to the end of June 2012, indicating that they expect the economy to grow.

Unemployment did increase in August from 5.1% to 5.3% according to the ABS which was contrary to expectations and is perhaps a reflection of some recent redundancy talk by the likes of BlueScope Steel, Qantas Airways and WestPac Banking Corporation.

Perhaps I’ll end this introduction with an Aaron Levenstein quote; “Statistics are like a bikini. What they reveal is suggestive, but what they conceal is vital.”

In this edition of the Ambition Technology Market Trends report:

• Recruitment 3.0: A new era on the horizon.
• Executive Remuneration in the Year ahead.
• Insource, outsource or partnership with specialist recruitment providers.
• Data integrity, background checking and sham qualifications.

As usual we are always keen to hear from you, please leave your comments, questions or suggestions in the comment section below.

Australia has one of the strongest economies in the world and with that comes some of the highest salaries in the world, particularly in the technology field.

Having recently arrived from the UK, what I have realised is that IT professionals are getting paid substantially more here for the same job.  Graduates are commanding salaries which even Senior IT professionals would struggle to get in some parts of Europe.  I appreciate there is a slightly higher cost of living here, but the difference outweighs that by far.

Taking that into account, I have been surprised at how demanding and inflexible some IT professionals are in terms of their salary requirements.

I can totally understand that we all want to get a pay rise and that we have mortgages and families to consider.  However, I have known some IT experts to refuse to move unless they get a $30K pay rise – irrespective of the job and career prospects on offer.  Others I know that have been out of work for months with and have turned down offers in fantastic companies and great working environments – because it means taking $5K less than they were on previously. When you are earning upwards of $140K and around $40K more than you would in any other country, I can’t quite believe $5K here or there would be a showstopper.

And what about getting up every day to go to work in a place that you love?  You can’t put a price on that.  Gaining that top-end package quickly loses its appeal when you dread going to work or when you have no job satisfaction.

In my opinion, sometimes you have to take a sideways step or even a salary cut in order to move forward in the career you really want.  Some companies may offer a slightly lower salary than market rate but they will provide exceptional training that you will not find anywhere else.

If you want to be trained in the latest technologies or work for your dream company then I urge you to consider being flexible on salary.  Think short term sacrifice for long term gain. And don’t forget, sometimes it’s the little things that can make all the difference –things like working close to home,  flexible hours,  work life balance, the chance to work with latest technologies, fast track to management , a fun and friendly working environment… money is an important factor, but it shouldn’t be the only factor.

With a 10% predicted increase from 2010 on IT spend globally there are a number of trends we are noticing specifically within the banking and financial services sectors.

Regulatory change, with tighter requirements for the likes of APRA is driving much of the current recruitment requirements around increasing the reporting capabilities for many of these organisations.

There is also an increasing number of large scale modernisation and transformation programs of work across large and small clients driven by the fact that most organisations haven’t made a significant investment on technology spend for the past 10 years. Mobile banking functionality is also a hot topic currently especially with the likes of Bankwest implementing a new website utilising an online shopping tool which provides a shopping basket type of functionality.

Cost reduction is still the big challenge for CIO’s and this in itself is driving the demand for consolidation and unification of global and regional technical operating platforms.

The first quarter of 2011 closed for many Australian Technology businesses with a solid, if not superb start to the year. The economy continues to build with positive momentum evidenced by a number of positive economic drivers.
On the flip side the first quarter of 2011 has seen a number of challenging events occur both locally and on a global scale. Despite the global markets starting to recover, the recent natural disaster in Japan will have a noticeable effect on Japanese production in the short term and this may have minor effects on other Asian markets. Closer to home both the New Zealand earthquakes and the Queensland floods have had dramatic effects on many individuals, and as always with natural disasters the flow on of increased costs associated with the clean-up and recovery will continue for some time.

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2011 is the Chinese year of the Rabbit; “a placid year much welcomed and needed after the ferocious year of the Tiger.  Forecasters talk of good taste and refinement which will shine on everything whilst people will acknowledge that persuasion is better than force.  It is a time to watch that we do not become too indulgent but at the same time take advantage of the fact that money can be made without too much labour. Our life style will be languid and leisurely as we allow ourselves the luxuries we have always craved for. A temperate year with unhurried pace, for once it may seem possible for us to be carefree and happy without too many annoyances”.

Now I’m not one to read too much in to horoscopes but with wishful optimism I’d like to think that if even half of this comes true 2011 should be an excellent year.

The technology recruitment market started without much delay in the very first week of January as pent up demand from the end of 2010 rolled over the holiday season and quickly surfaced in the form of increased job advertisements across the sector.

This year here at Ambition we’re committed to talking less about skill shortages and more about skill re-alignment.  It’s clear there is an imbalance between the supply and demand of certain niche skill sets but what’s equally clear is the need to address creative albeit often simple solutions to train, mobilise and deploy people in to those areas of strong demand.

In this edition of the Ambition Technology Market Trends report: 

• Effective goal setting for you and your team – maximise engagement and retention.
• Competition, internal and external – how to keep it fun and healthy.
• Bonus time – ensuring everyone gets what you deserve.

As usual we are always keen to hear from you, please leave your comments, questions or suggestions in the comment section below.

Or view the embedded version below.

For the best viewing experience click ‘Fullscreen’ below to view the report in full screen.

Ambition Technology Market Trends Q1 2011

In the office my colleagues call me the Christmas Grinch, Bah Humbug and The Scrooge so to make sure I live up to my reputation I will not mention a thing about that C word!

The Year 2010 in Review

January 2010 – This was a crazy period of time for me, recruiting in the infrastructure space during January was like opening the flood gates. Budget had finally been allocated for extra head count after the GFC and managers didn’t hold back. They wanted to make sure they gave some relief to their teams before upper management changed their minds. This is traditionally the quietest month of recruitment in the year but definitely not for me in 2010. This was a good sign of things to come for 2010.

February > May 2010 – Things incrementally picked up from here as more and more uncertainty was waivered and good financial results gave companies across various sectors more budget for both permanent and contract positions. Although there were additional requirements and companies were performing well there was still the hangover of the recent GFC on everyone’s minds and threats of a double dip recession kept salaries and over hiring down. Overall, steady increases in hiring and vacancies for Infrastructure professionals continued throughout the first two quarters of 2010.

June > August 2010 – The Infrastructure recruitment market plateau happened during these months but projects started to kickoff and the business information team were very busy throughout these months employing PM’s, Business Analysts and various project leads / designers. This would impact the infrastructure market later on down the track in 2010 and 2011. Throughout the year to date companies had been cautious not over doing salary increases and were being very selective with who they brought on board to their teams. With the steady increases in staff hires throughout the year the first signs of real skilled staff shortages started to peep through the cracks and recruiters were starting to find it harder to deliver on client requirements. Honest and Smart Recruitment Consultants indicated these changes in the job market and set realistic expectations with their clients.

October > December 2010 – Things really ramped up, the GFC was now deep in the back of the minds of everyone, business confidence hit three year peaks, company financial results remained strong and Australia had its largest ever increase of new fulltime roles in a calendar year (across all industries). There was a healthy statistic of 40% more vacancies open in November/December 2010 than 2009. Companies turned to permanent recruitment over contract generally speaking and due to candidate shortages a large percentage of my clients increased salaries to attract the right candidates to their vacant positions. This quarter has been the real start of the candidate short market, salary increases and staff retention incentives. Cloud computing has been the real buzz word in the IT industry throughout the year and this quarter I have been to no less than 5 seminars on it, it definitely has a large push going on right now.

The year 2011 - What to expect for the IT infrastructure job market?

My prediction if no unexpected market disturbances occur is a continued increase of staffing demands across IT Infrastructure resulting in extensive candidate shortages by the end of 2011 and rate increases reminiscing of 2007. Although we are starting to head to candidate shortages and the NBN will contribute to this I don’t believe it will get to the levels of 2007. I believe this will be offset by current trends in the IT Infrastructure market of outsourcing, off shoring and cloud computing. These all seem to be happening at an increasing rate but I still believe organic growth will keep infrastructure specialist needs in Australia incrementally high.

I have heard of a number of infrastructure managers showing real concern of the effect cloud computing could have on their team and individual careers. Personally I don’t think they have too much to worry about as when a new technology is supposed to save man power, requirements generally in the past have actually increased in other areas of IT. All new roles are produced and people slide their careers in those directions. Also companies absorb new technology at differing rates so there will always be a need for an abundance of skilled infrastructure specialists for our generation.

2011 will be a year to cement your career in a role that is future proof and rewarding you financially well for the skills you have developed. Let’s hope I am right and 2011 can be a great win year for most like 2010 was.

These are my individual opinions formed through experiences and conversations throughout 2010. Does anyone have anything to add or challenge?