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

Salaries within the Infrastructure space continue to be stable rather than spectacular. Nervousness surrounding economic conditions in Europe is tempered by China’s continued rise to prominence and our own resources boom, creating somewhat of an impasse in permanent salaries especially. Contract rates are more open to fluctuation and are increasingly influenced by client and industry sector.

In contrast to the Applications market we are seeing an increasingly popular trend of on-shoring/insourcing of local customer facing IT support functions. Subsequently and more-so in a contract context this is somewhat inflating rates at the lower end of the market as companies scramble for the limited number of available talent. It will be no surprise to see that as a consequence of this lower end elevation there may well be some fluctuation in rates in the coming 12 months at the higher echelons.

The expected redefinition of rates is due to the take-off of large scale projects, the most prominent of which being the National Broadband Network, has not so far come to prominence. There was a fear that this would destabilise the permanent and contracting arenas with gross over-payments however at this stage there has been a collective sigh of relief that no further strain is being put on already tight budgetary constraints.

As has been the case for the last number of years, the moves to virtualisation and the cloud will continue apace. Certain trends to watch out for will be wider scale and next steps of virtualisation (of everything – desktop/network/apps/servers/storage) and further diversification into fabric computing, the concept having been muted for a few years now. ITIL and Process Management will continue to evolve and an increasingly hot topic and focus will be the management of the unprecedented growth in data storage.

Employers are increasingly looking for more value from their existing and potential employees – the term coined some years back being “T-shaped staff.” Specialisation will continue to be sought at the highest, niche levels however the preferred modus operandi will be for Infrastructure staff in particular to diversify their skill sets and thus increase their operational value.

What Next?

I expect that salary wise 2012 will be shrouded in an air of uncertain expectation, in so much as a change is expected but nobody is quite sure as yet what form it will take. If global economic conditions worsen then we may see a return to less projects, higher unemployment and lower salary levels however if we are again fortunate as a nation and get shielded from any impending doom then we could well see rates stabilise and potentially increase as investment in the sector grows.

Your Comments

Do you agree with my comments or want to offer a different perspective to salaries and/or trends in IT Infrastructure? If so please feel free to add your comments here or email me directly at neil.linz@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.

  

In the past week alone I’ve been approached online by no less than 30 or so different connections who want to connect to me and my network.

So in the words of Derrick Zoolander, I must be really, really ridiculously popular right?

Well I suspect I’m not as popular as I’d like to think; so why are these professionals reaching out to connect with me and my network?

The answer lies in the as yet, largely un-fathomable Return on Investment (ROI) that everyone believes they can achieve through growing their social and business networks. Surely the more people I know the more likely I am of selling my product, getting that new job or building my client list. But the reality is far from that simple with perhaps only the most astute recognising that the key to working any network, online or off, is to connect with people from whom you can deride a benefit and importantly who may also deride a benefit from you.

‘Influence’ appropriate to your desired outcome in growing a network is the key to a successful network, more so than the number of connections and tenuous friends that you can lay claim to.

As the year comes to a close now is the time to re-assess your goals and objectives for the year ahead; what type of people would be useful for you to know and how can you assist those people? The deluge of social media driven connection opportunities that have grown in the past year alone are staggering and there are no signs of it relenting. At the risk of having to hire an assistant to manage my ‘friends and connections’ I’m going back to the old adage of ‘quality over quantity’. Don’t be offended if I don’t accept your LinkedIn invitation, If I’m doing my job correctly I’m probably saving us both some time if our mutual interests aren’t similar. On the flip side, if you see a connection I don’t see, spell out your intentions clearly and I’m likely to look more favourably on the approach.

 At the end of the day it may not be; ‘what you know, but who you know’ but it’s also now “why you know them’.

John is the Head of Technology New Business Development at Jetstar Airways. He is focused on building Agile IT teams for Delivery, Operations, Support and Partnerships to deliver systems for new opportunities.

He has been in the industry for over 10 years and previously worked as Sensis as the Group IT Manager specialising in online search and directories.

John shares some of his experiences with Agile and discusses what makes it different from other methodologies.

View John Sullivan’s LinkedIn profile.

Perhaps one of the more pertinent reasons recruitment professionals are scorned lies in the nature of the business model under which they operate, Sales. It’s intrinsic in any sales business that the art of influence and persuasion are required in reasonably heavy doses for anyone who wants to be successful and it’s these attributes that are perhaps not best bed-fellows with the concept of trust. When a job seeker is looking to move in to a new position he/she must feel that they are doing the right thing at the right time, and if the process is being managed by a third party then that trust element, separate from any sales bias, is critical to the success of that process.

In today’s global economy job hunting has never been more paradoxical; on the one hand roles are more complex and specific than ever before whilst on the contrary are often sourced through mass managed, automated technological solutions which fail to address these significant intricacies.

The role of professional recruiter one might argue, has never been more needed. But the trust and altruism of finding someone the right job, at the right time and for the right reasons is essential to maintain professional and industry integrity.

My area of specialisation is Business Intelligence and Data Analytics in the Melbourne area. I have around 5 years’ experience working in this space.  I work on anything to do with Data  – this can be anything from building a Data Warehouse to Statistical Modellers who use SAS software to analyse large data sets.  My candidates can come from an IT background, but may also have Maths, Statistics, Physics or Business degrees.

The types of roles I work on are BI Developers, Data Warehouse Consultants, SAS Modellers, MI Analysts,Data Analysts, Marketing Analysts, Campaign Analysts, Credit Risk Modellers.  The types of technologies I look for are things like SAS, SQL, SPSS, Cognos, SQL Server BI – SSIS,SSRS,SSAS, Oracle BI.

I work  across all industries – Banking, Telco, Insurance, Marketing and more as these specialist candidates can work in area department in any industry.

A number of my clients in Banking and Telco are looking for SAS Analysts and I am ALWAYS interested in seeing any candidates with SAS experience who are looking in Melbourne from junior to senior level.  I am currently looking for a Head of Data Analytics who has experience looking after a team of SAS Statistical Modellers.  This role is paying a $250K package and will be based in Melbourne CBD.

Market Trends:

Data Analytics is a very niche and candidate-driven market and there is a growing demand for candidates with SAS/SQL skills who can use data to add value to a business.  I can see continual growth in this space, all major companies are investing in these teams and are even seeking candidates from abroad due to a shortage in the market. On the flip side, the trend does seem to be for people with 2-5 years experience and Senior Manager roles are extremely rare.

Business Intelligence: Although it is still a very niche area, there has been a flood of strong candidates from abroad which has made it much more competitive for candidates when they are applying for jobs.  I have noticed that some BI Consultants have been in the market for a while before finding the right job and have had to travel interstate to find the top end contracts.

What trends are you noticing?

Recruitment Consultants spend a lot of time giving tips and advice to job seekers in an effort to best prepare them for interviews. The goal of course is to allow them to dazzle their interviewer and hopefully demonstrate why they are the best candidate for the job.

But what about the other side of the fence?

I’d like to pose the question, ‘What should a job seeker expect in return?’

This week a job seeker who we are working with was telephone interviewed by an internal recruiter and on consideration was given approximately six to eight minutes before the conversation was concluded. Now before we assume the candidate simply wasn’t suitably qualified for the role, I’d like to focus more on the three simple expectations that a candidate should have the right to, after being chosen to be interviewed.

1. Time,
2. Respect, and
3. Feedback

Time: If a job seeker has taken the time to prepare a resume and apply for a role then surely after being screened and selected to attend an interview the very least they should be given is the time and attention to present and demonstrate their skills, background, personality and value. This of course requires an interviewer who is skilled not only in asking appropriate questions but also in effective listening techniques. A successful interview process has to be a two way conversation that presents information both from the interviewer about the job to the job seeker; and from the job seeker to the interviewer about their skills.

Respect: An interview is an opportunity to showcase not only the job seeker but also the company or organisation that is recruiting. Respect presumes that both party are interested in the other at this stage and therefore irrespective of prejudices or evidence of lack of suitability at this stage, professional behaviour should be maintained at all times. Courtesy and respect cost nothing and have the ability to colour opinions long after the interview has been concluded successfully with a hire or otherwise.

Feedback: The conclusion of any interview should include next steps but the often missed opportunity by both parties is to give and receive appropriate and constructive feedback. A candidate who looks promising should be encouraged and a candidate who does not should be told why not and offered relevant advice on why they do not meet the requirements. This is a great opportunity to conclude the process in the professional manner in which it was undertaken and will again reflect not only the parties involved but also the company or organisation and its brand.

So I go back to our original job seeker and their prematurely short interview. Irrespective of whether they were suitable or not, once the interview began did they receive those elements of a professional interview to which they were entitled?

The following article by Jennifer Forshew, discusses pay rising as demand for skilled staff grows. Read Ambition Technology’s Managing Director, Andy Cross’s comments below.

PROFESSIONALS with skills such as Silverlight, MVC or SharePoint are highly sought after, with experienced developer salaries peaking 10 to 20 per cent above the industry norm.

The latest Ambition Technology Market Trends report for Quarter Three, released today, found more experienced developer salaries had jumped above the average at about $120,000 to $135,000.

SAP continued to perform strongly, with second-quarter software revenue up 35 per cent, the report said.

It found technical or functional ERP consultants with three to five years’ experience could earn up to $140,000 in salary or up to $1200 a day on shorter contracts.

Ambition Technology managing director Andrew Cross said that in the Microsoft space, a more generic skilled individual trading only on their core .NET skills would not be as valued as those with Silverlight, MVC or SharePoint skills.

“SharePoint continues to drive demand across large enterprise users, and finding good SharePoint developers is a challenge,” he said.

“It is a heavily contract-driven segment because these guys know they are in such demand they are able to move from client to client.”

The study found there was continued demand for mobile application developers and those who could code in rapid application development languages such as Ruby on Rails.

It said business analysts were earning between $100,000 and $110,000 a year, while most applicants with five years-plus experience were seeking $120,000 and above.

The report found a shortage of infrastructure project managers at the $650 to $700 a day level and a generic shortage of master data managers across NSW.

Security professionals were in demand from systems, network and data through to chief security officers who could get salaries close to $180,000.

Mr Cross said areas where salaries were competitive and staff in short supply were storage, security and cloud/virtualisation.

Hays IT Australia and New Zealand director Peter Noblet said developer salaries were not climbing across the board, but only in some skills. “Those skill sets are probably in the Microsoft .NET space,” he said.

“More and more we are seeing skills in demand in the sort of associated areas like SharePoint, knowledge management and information management areas.”

Other hotspots were SAP, telecommunications, business analysis and virtualisation.

“Where we are seeing a lot of activity over the past few months is the telecoms space, and one of the key trends is the willingness of organisations to look at either relocating people from overseas or trying to attract ex-pat Australians back to work here.”

Michael Page managing director Simon Meyer said competition had pushed up salaries for key skills.

“We have had high-calibre project managers at final stages within professional services and they have been gazumped by 20 or 30 per cent out of the major financial institutions in Australia that are desperate to acquire that particular resource skill set because they have a mission-critical project that just has to be delivered.”

He said the demand for business-facing technology professionals was particularly high, especially for project managers and business analysts.

Mr Meyer said the flow of opportunities for CIOs and IT directors was also picking up.

A second report, released today by Candle, shows that the number of skilled professionals in the IT sector in the next five years will grow by 3700, however there will be a continued shortfall of 1200.

The Candle Skills Index uses analysis by KPMG Econtech based on Australian Bureau of Statistics and Department of Education, Employment and Workplace Relations data.

The index for computing professionals is in the balanced range at 100.5, and shows a shortage of about 1100 staff.

Candle executive general manager Linda Trevor said a “brain drain” trend was emerging as Australian employers favoured contract rather than permanent hiring or put employment decisions on hold.

The data found the shortfall could be further exacerbated as a result of the global move to shift IT functions overseas, primarily to the Asia-Pacific, and the job opportunities that presented themselves for Australian professionals.

The article can also be viewed here http://www.theaustralian.com.au/australian-it/pay-rising-as-demand-for-skilled-staff-grows/story-e6frgakx-1226147361789