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Talent Squeeze To Tax Solution Providers

Robert Faletra sees "a perfect storm" coming in terms of solution provider talent shortages:

"Is there any doubt that we are heading toward a period of wage inflation?... the cost of oil is driving up the cost of living in every area... There is flat out going to be pressure on every employer to raise wages above the core inflation rate or risk losing employees to a higher bidder."

At InformationWeek, Marianne Kolbasuk McGee already identified the option to telecommute as a powerful employment/retention perk.

"As for the recent report by tech career site company, Dice, that found nearly 40% of tech workers would accept a pay cut of up to 10% to telecommute full-time,"

Posted by Joe Caponi at 02:30 PM, July 14, 2008
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Outworking A Recession

With economic predictions growing increasingly dire, smart companies and smart individuals are hard at work on potential fixes. We've already looked at some ideas--bMighty's Fred Paul looks at a US News and World reprort feature and pulls out some ideas for different types of workers and companies.

"If you're new to the company: Come in early. Stay late. Don't take long breaks. Be the workhorse, the person who doesn't complain, the employee who gets loads of work done and doesn't have conflicts with other employees.

If you're an institution at the company: Fight the notion that you're not pulling your weight. Take advantage of the relationships you've created inside the company."

Hard work may not always save you, but it's good training for the next opportunity...

Posted by Joe Caponi at 11:07 AM, February 27, 2008
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The Talent Behind The Talent Shortage

In response to Is It A Talent Shortage Or A Salary Shortage? Walterbyrd posts a terrific response on the tough time technologists endure in the job market:

"To a job seeker, it seems that: if employers can afford to be this fussy, there must not be all that great a shortage. To the employers, it seems that, if they can not find somebody with extensive, and recent, experience in all the products that the employer lists (and nothing else) then there is a shortage of IT pros."

Certainly, many employeers see IT services as an expense to be minimized -- it's something many channel companies count on. But they're not stupid (not all of 'em, anyway). Demonstrating intelligence, drive and flexibility will pay off in the long run.

Some approaches to IT job hunting:

• Consider solution providers! They 'get' IT and are more likely to understand how skills transfer.
• Consider smaller companies - they can't afford the compartmentalization that bogs down big companies. On bMighty, Naomi Grossman reports that it seems that many -- or at least more -- smaller businesses are finally listening to their IT guys who have been telling that they have ways to [innovate].
• Be a business specialist. IT is a tool to solve business problems. Knowing a vertical (healthcare, or government, or finance) helps move your interviews to a whole different level.
• Social networking. It's never been a better time to utillize web tools to network and make a strong impression online.
• As Samuel L. Jackson advises in "Pulp Fiction", "Personality goes a long way." Make sure you're coming across the way you want to. Videotape yourself answering interview questions. Would you hire you?

What's working in today's IT job market? How do you keep your skills current when you've got a full time job, or when your full time job is looking for one? Let me know.

Posted by Joe Caponi at 11:24 AM, January 29, 2008
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Is It A Talent Shortage Or A Salary Shortage?

Information Week debates the question of whether there's a IT talent shortage in the US. In this corner, Dr. Jerry Luftman says, "Yes":

"Skilled IT professionals are scarce already, and the short supply is stressing organizational growth plans. Add to this the impending baby boomer retirement bubble, and the situation worsens. As 70 million baby boomers exit the workforce in the next 15 years, only 40 million people will enter the workforce."

While in this corner, Dr. Ron Hira says, "No":

"The most relevant market indicators--wages and employee risk--clearly show there's no broad-based scarcity of U.S. IT workers. In their zeal to enlist government help to expand the supply of tech workers through foreign guest worker programs, employers are misrepresenting IT labor market conditions"

Along those lines, Information Week also reports that "only 5% of CIOs said their companies have offshored technology jobs", which would seem to indicate that most companies can get their projects done locally. Many of the folks on Information Week's forums think it's more a case of employers unwilling to pay the going rate for local workers.

Posted by Joe Caponi at 11:11 AM, January 25, 2008
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Jobs: Confidence Down, Demand Remains

Though IT workers expressed their lowest job confidence, in recent years, CIO's still say talent's tough to find:

"'Yes, there are some jobs that are being offshored, but the preponderance aren't,' [Bob Keefe, new president of the Society for Information Management] says. Similarly, in manufacturing -- an industry where the offshoring of jobs has probably been most prevalent -- there are shortages of some very key talent, such as engineers. 'Even if an engineer can fog up a mirror, we’ll hire him,' Keefe quips about how tough that talent market has become."

So where's the disconnect--whose expectations are too high?

Posted by Joe Caponi at 12:25 PM, January 10, 2008
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The Hunt For Good Gen Y Workers

With one in five solution providers (according to our State of the Market research) looking for "millenial" or "Gen Y" workers, it helps to know what they're looking for in boss. Over on bMighty, Fred Paul sees an opportunity for smaller firms looking to beef up their talent pool:

"Handled correctly, what 87% of hiring managers and HR professionals dismissed as "a sense of entitlement" could open the door to snatching top young talent away from large enterprises -- perhaps for little more than the cost of a fancy smartphone."

And that 20% figure balloons to over 50% for large sized solution providers. So the big fish are on the lookout--what do you do to compete?

Posted by Joe Caponi at 10:56 AM, December 28, 2007
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An Unbrella Group To Promote Certifications

Promising news on the certification front--a broad array of the top IT vendors, along with testing and industry groups, have formed the Technology Certification Council:

"The new Information Technology Certification Council would work toward growing professional certifications and ensuring a qualified workforce to meet global technology needs...

The group also plans to improve exam security, training to testing ratios, and perceptions about the value of IT certification and its return on investment."

Posted by Joe Caponi at 10:21 AM, November 29, 2007
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Has Outsourcing Peaked?

On bMighty, Paul Korzeniowski reports that global outsourcing has been in a slowdown all year. The reasons? Cheap foreign labor isn't really so cheap, in part because salaries overseas have gone up while the dollar has gone down, but also:

"Outsourcing suppliers have struggled to deliver on many of their promises. While many claimed to be able to dynamically adjust to a company's changing business requirements, some have not been able to deliver on that promise. To make their own business viable, outsourcing suppliers need to take a cookie cutter approach to delivering their services, with little or no tailoring to clients' needs."

I like the conclusion:

"Outsourcing was once portrayed as a panacea to IT challenges. The fact that many such claims have proven hollow means IT employees can walk over and shake the CEO's hand rather than head for cover when he approaches them."


Posted by Joe Caponi at 10:58 AM, November 20, 2007
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IT Unemployment At 2%, Say Feds

Offshoring continues, and low-end programmer jobs are in decline, but overall, the IT job situation remains strong, according to the Bureau of Labor Statistics. Information Week reports:

"IT unemployment was 2%, according to an average of the past four quarters of BLS data... That unemployment rate is down from 2.2% in 2006 and as high as 5.6% in the third quarter of 2003.

The biggest job growth categories continue to be software engineers, computer scientists and systems analysts, and IS managers."

Posted by Joe Caponi at 11:53 AM, October 18, 2007
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The Power of SAP, And More On Employment

Some recent updates from the high-tech hiring scene:

Half Of Tech Employers Looking To Fill Jobs By End Of 2007:

"According to a new survey... Twenty-eight percent of IT employers said they plan to increase hiring in the second half of the year, and 40% say they're planning to hire about the same number of employees in the second half as they did in the first six months of the year."

Want To Keep Your Job Safe? Beef Up Your Soft Skills:

"Project planning, functional-area process knowledge, and company-specific knowledge were the top three skill sets [CIOs] identified last year as mostly likely to be kept in-house at their companies for the next few years."

Most Tech Executives Are Unhappy With Their Jobs

"Nearly 60% of IT executives say they're not satisfied or somewhat unsatisfied by their jobs, according to a survey of 2,149 executives by ExecuNet, an executive career networking firm.

My somewhat cynical take: it's not supposed to be fun. That's why they pay you. Speaking of which...

Tech Wages On The Rise:

"While recent surveys showed tech professionals less confident about jobs, Yoh [a U.S. job placement firm] was seeing a "good, steady pace for hiring professionals with high-level skills and deep-rooted industry experience," Jim Lanzalotto, VP of strategy and marketing for the firm, said in a statement. 'We should keep an eye out for more competitive wages to come during the remainder of 2007, and into 2008 as the marketplace continues to heat up.'"

For more on the Yoh report, see their blog: The Recruiter:

"SAP Technical Consultants and Hardware Designers continue to be among the jobs in greatest demand. They also reported the highest hourly wages at $85.53 and $65.63, respectively."

I gotta learn some SAP...

Posted by Joe Caponi at 11:01 AM, July 26, 2007
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Is LinkedIn Out?

My LinkedIn account is finally rocking. After a few years of slowly adding 'connections' from various colleagues here and there, I suddenly have 55, and I can feel the power. Need an "In" in New Zealand? No problem. With NASA? Done. My 55 connections (people I actually know) lead directly to over 4,000 more. So what could be wrong? According to some, LinkedIn is 'over.'

Continue reading "Is LinkedIn Out?"

Posted by Joe Caponi at 11:17 AM, July 17, 2007
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Staffing and HR Report

I'd wager there are few issues that solution providers would rather deal with less than recruitment, retention and human resource ones, though few will be more critical to keeping your business on track. VARBusiness' new Human Resources Special Report can help. With features on hiring the right people, avoiding HR disasters, the role of new HR software solutions, and more, it'll help take the sting out of the 'people side' of the business.

Posted by Joe Caponi at 01:36 PM, May 23, 2007
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Life At Microsoft

Barbara Darrow weighs in on a former insider's report on the rough culture at Microsoft:

"Many Microsoft partners and even insiders concede that the arrogance—-and the BillG wannabe population explosion in the rank-and-file got out of control. This hurt the company itself and annoyed/outraged its "ecosystem" partners. Almost every partner has his or her own outrageous Microsoft product or project manager story with wince-inducing detail."

Does tight competition from the likes of Google make this better or worse?

Posted by Joe Caponi at 12:51 PM, May 8, 2007
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Web Training For Retail Staff?

I received this question from a ChannelWeb member, and I don't have a good answer, so I'm putting it out to everyone...

"Do you have any idea where I can access online, reasonably priced training for retail sales people? I have a retail store that sells the usual variety of computers, laptops, printers accessories, routers cables etc. We have a high turnover of our staff on the retail side and I am finding that I am taking a lot of my time away from enterprise network support and design to train retail staff on the basic of computers so they can sell. For example – what exactly is USB, what is the difference in the processors, what is the difference between SATA and IDE etc."

Any suggestions, please post in our discussion forum, or email me at editor@channelweb.com. Thanks!

Posted by Joe Caponi at 02:19 PM, April 10, 2007
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Saving The Interruped Worker

Context switching--moving effectively from one task to another--is a challenge in computer programming. It's a bigger challenge for humans trying to get work accomplished. Sunday's New York Times reports on recent research on the productivity-sapping effects of interruptions:

"'Multitasking is going to slow you down, increasing the chances of mistakes,' said David E. Meyer, a cognitive scientist and director of the Brain, Cognition and Action Laboratory at the University of Michigan. 'Disruptions and interruptions are a bad deal from the standpoint of our ability to process information.'"

Humans inherently can't move smoothly among tasks:

"In a recent study, a group of Microsoft workers took, on average, 15 minutes to return to serious mental tasks, like writing reports or computer code, after responding to incoming e-mail or instant message."

Fifteen minutes. Every time. I've held off on using IM, and try to quit e-mail when I can. I use a Mac widget called 3-2-1 Countdown to set time limits--10 minutes, 20 minutes--when I'll do nothing but X. It's still a constant battle. How do you cope, and how do you keep your organization on track? (Hat Tip: 43 Folders)

Posted by Joe Caponi at 11:32 AM, March 27, 2007
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When I Grow Up

It was all the rage at our XChange Solution Provider show this month, and it's been the biggest hit on ChannelWeb video ever since: When I Grow Up--a look at some kids who really get the channel.

Laughs aside, Larry Hooper sees some bigger implications for solution provider and channel hiring:

"Because for all the talk I hear of solution providers having trouble hiring people, I hear very little about what is being done to develop young talent and steer it into channel-related careers.

And it has been said before but it is worth repeating: Nobody grows up dreaming to be a VAR or a channel chief."

Indeed. I often tell our colleagues over at EETimes how I envy their built-in audience. Their readers are people whose high school guidance counselors suggested they become electronic engineers; they studied electronic engineering in college; got their degrees in electronic engineering; found jobs in electronic engineering. What web site do you think they might visit?

It's not as easy for VARs, solution providers, integrators, consultants... whatever. But at least there's ChannelWeb.

Posted by Joe Caponi at 05:26 PM, March 26, 2007
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Staffing Problems? Look In The Mirror

At Information Week, Rob Preston doesn't want to hear IT employers carp about visa limits or an aging workforce or problems with the educational system. While those issues are real, he says most high tech companies in the US have done a terrible job attracting, training and motivating the employees they've already got:

Continue reading "Staffing Problems? Look In The Mirror"

Posted by Joe Caponi at 01:10 PM, March 12, 2007
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Embracing Transformation

You've just got to do it, Robert DeMarzo explains:

"Start thinking seriously about business transformations and decide two things: What do you stand for as a leader? And what breakthrough do you need to accomplish this year?"

The Channel Man may have been channeling a bit of the Bard: "We know what we are, but know not what we may be."

Posted by Joe Caponi at 05:31 PM, January 5, 2007
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Tech Pros Still Merry

Good news from the Hudson staffing survey:

"Demand for tech talent is predicted to become increasingly intense in 2007. That's especially true for key skill groups, including experienced professionals of project management, change management and business analysis, according to IT staffing firm officials...
Driving the job confidence among participants of the Hudson November survey were record-low expected layoffs and improved outlook regarding personal finances."

Posted by Joe Caponi at 10:37 AM, December 7, 2006
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Hiring Troubles In India

Heather Clancy looks at a report that now Indian tech firms are having trouble hiring, despite the high numbers of engineering graduates available.

"The (Indian) National Association of Software and Service Companies... found that only one in four engineering graduates were "employable." The study pointed to deficiencies in technical skills, English language skills and presentation skills as issues."

She says American companies need to step up their efforts help local young people learn the necessary skills for IT jobs.

Posted by Joe Caponi at 04:47 PM, October 18, 2006
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Tech Paychecks Rise, Slowly

Consistent with low unemployment across the economy, tech pros have seen their wages 'inch up,' according to a report from the Yoh staffing firm. Across America (just like Australia!), tech professionals with specialized enterprise application skills were the big winners.

"Yoh has seen the same type of solid growth this year that it tracked for wages in 2004 and 2005, when pay began to climb "out of the trough" in 2002 and 2003, Lanzalotto says.

Several categories of in-demand talent saw wages rise 5% or more during the third quarter. "Today's rock stars include ERP, especially SAP and Oracle guys," Lanzalotto says. "You can't find enough of them.""

Posted by Joe Caponi at 11:59 AM, October 12, 2006
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October Careers and Employment Linkfest

So far, so good. Despite the cooling economy, today's new jobless claims report shows that the employment picture overall remains healthy. With the big September unemployment report due out tomorrow, it's a good time to look at some of the latest links on the high tech employment scene:

Continue reading "October Careers and Employment Linkfest"

Posted by Joe Caponi at 10:57 AM, October 5, 2006
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CRN Special Report: Training and Certification

CRN takes their annual look at training and certification and find some room for optimism:

"The ongoing tension evident in recent years between vendors and channel partners over the proliferation of training and certification programs, rising costs and constantly changing requirements appears to be waning."

The report finds the most valuable certification programs in software, networking, systems and storage according to solution providers.

Posted by Joe Caponi at 04:30 PM, August 28, 2006
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Readers Weigh In On H1-B

Some responses to Monday's post on H1-B visas and the Channel. On the boards, a reader notes:

"Not everyone uses these visas to drive down local salaries. Our company has a wholly-owned subsidiary in Eastern Europe. When we bring staff to the U.S. from that subsidiary, they go on an extended leave of absence there and get full market salary here. The visa isn't a cost-saving tool for us, it is a way to shift experienced staff around when needed."

Another emails:
"I'm not sure Shahid really knows what he is talking about. I too work with an H1-B. Before you can be employed you have to have a Labor Cert. Which means you are qualified to do the job. The employer has to demonstrate they are paying the going rate. This is policed by the INS in a way that you have to provide pay slips. I can only suggest that Shahid is a little out of touch with what is currently going on."

Is the alternative to increasing H1-B visa limits the complete offshoring of technical jobs? What are you seeing in your organizations?

Posted by Joe Caponi at 11:22 AM, August 18, 2006
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Women Of The Channel

The latest VARBusiness special report recognizes 50 top women working in the Channel today, along with tips for anyone looking to stand out in business, and an opportunity to join VAR's Women of the Channel community:

"The channel--and the IT industry at large--is evolving, and women are becoming a force to be reckoned with across the board. While vendors have been quicker to take on women executives, solution providers are following suit (forgive the pun). In fact, more than 25 VARs on this year's VARBusiness 500 are headed by women"

Posted by Joe Caponi at 10:20 AM, August 16, 2006
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H1-B Visas And The Channel

CRN's John Roberts has reader responses to proposals to raise the H1-B quota sharply over the next decade. (H1-B visas permit skilled foreign workers to enter the United States to work for three to six years. Currently, 65,000 H1-B visas are granted each year, and the supply is quickly exhausted.)

"While some solution providers have said they would welcome the quota increase, others in the channel have diametrically opposed views.

The major objections to raising the annual quota center on two points. The first is that the increase would adversely affect U.S.-based technology job seekers, whether experienced or new to the market. The second is the possible negative impact on both the growth of the U.S. economy and the domestic pool of technology talent."

This June report from EETimes.com backs up the contention that H1-B visas are driving down engineer's salaries in the U.S.:

""I work with those H-1Bs, and as far as I know they are getting half of what we get," said Shahid Sheikh, a senior software developer with TAC Worldwide in Jacksonville, Fla. "I get a normal salary. I get $80,000 a year. They get a maximum $40,000 a year." Sheikh, who worked under an H-1B visa when he emigrated from Bangladesh 12 years ago, said the program is "filled with fraud and cheating." He was naturalized about two years ago."

Posted by Joe Caponi at 10:18 AM, August 14, 2006
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Tech Workers Upbeat

A new report shows tech workers happier and more secure than they've been all year, and happier than workers in other industries:

""It's hot out there right now for tech pros," says Kevin Knaul, a Hudson VP. Fueling the confidence of tech pros is heavy demand by employers. "There is definitely more demand than supply right now," he says. "It's a struggle to keep up."

Especially hot are those with skills in Web services, .Net, Java and ERP. "All the major ERP vendors are updating their products this year," driving the need for those pros, says Knaul."

Posted by Joe Caponi at 11:18 AM, August 3, 2006
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The Dahlgren Quesion

Two of the biggest channel companies; one executive; and a non-compete agreement. Larry Walsh is watching the case of Bruce Dahlgren, due in court tomorrow.

"Dahlgren and HP were smart, though. Even before Lexmark, a Kentucky-based company, could react, they filed a lawsuit in the employee-friendly California courts, which typically don't recognize the legitimacy of noncompete agreements. Lexmark did file its own complaint in the Bluegrass courts, and the two courts agreed to impose an injunction on Dahlgren, which prevents him from working in North America until the case is disposed."

Posted by Joe Caponi at 02:27 PM, July 5, 2006
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CRN Salary Survey

CRN's much anticipated annual Compensation and Salary Survey is live now (and a week early!) In it, you'll find:

What business specialty is growing fastest in compensation; what technology certifications are most lucrative; and what geographical regions are the greenest.

And of course, the annual Salary Calculator lets you run your own numbers and see just how good, (or not) you have it.

Posted by Joe Caponi at 10:25 AM, June 19, 2006
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Tech Workers Eye Greener Grass

Half of tech professionals expect to be looking for new jobs in the next year, according to this report from staffing firm Spherion. Spherion VP Brenden Courtney is quoted:

""Tech workers tend to make job changes more frequently than other workers...They tend to be more mercenary, looking for more money, better work-life balance, working with new technologies."

Or they don't like their bosses.

Posted by Joe Caponi at 10:28 AM, June 2, 2006
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Introducing TechCareers (and a careers linkfest!)

There's always been a piece missing from ChannelWeb. The web's premiere solution provider community has always needed a robust job board for companies looking for experienced channel professionals, and for quality people in the IT job market. We're finally there.

Continue reading "Introducing TechCareers (and a careers linkfest!)"

Posted by Joe Caponi at 11:19 AM, May 11, 2006
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By Joe Caponi
Managing Editor, Operations, ChannelWeb

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Recent Entries

Talent Squeeze To Tax Solution Providers
Outworking A Recession
The Talent Behind The Talent Shortage
Is It A Talent Shortage Or A Salary Shortage?
Jobs: Confidence Down, Demand Remains
The Hunt For Good Gen Y Workers
An Unbrella Group To Promote Certifications
Has Outsourcing Peaked?
IT Unemployment At 2%, Say Feds
The Power of SAP, And More On Employment


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