IT Infrastructure - News

The startup rate among unemployed managers and executives fell to 4.3 percent in the second quarter, compared to 7.2 percent in the first quarter. Last year, 6 percent of job seekers abandoned the traditional job market for entrepreneurship in the second quarter, according to the study.  The second quarter figure was the lowest since the fourth quarter of 2000, when only 3.5 percent of job seekers started their own firms.

The CEO of Janco Associates, Victor Janulaitis disagrees.  Mr. Janulaitis said, "We are seeing enterprises of all sizes begin to be more cautious - they are now deferring both hiring and spending."

The IT unemployment rate inched up one-tenth of a percentage point last quarter to 2.3 percent, but still hovers near historic lows. That is in contrast to overall unemployment, which last quarter stood at 4.7 percent, more than double the IT jobless rate. (In June, overall unemployment stood at 5.5 percent for the second consecutive month, after shedding 62,000 jobs that month. Comparable numbers arenÂ’t available for computer-related occupations.)

Why would IT employment remain robust as unemployment rises in most other job categories? IT performs a critical role in business productivity, and the efficiencies it brings are crucial for employers looking to trim costs - including payrolls - as fuel and related expenditures soar and the economy and dollar weakens. In addition, companies today cannot operate without functioning IT systems, so certain business technology skills cannot be eliminated if a company wants to remain competitive.

A year earlier, the IT unemployment rate stood at 2.1 percent, with 3,599,000 workers employed in IT and 77,000 jobless and looking for positions in the field, for an IT workforce size of 3,675,000.

With 4,050,000 managers, professionals and other staffers holding or seeking computer-related positions last quarter, the IT workforce has grown by 10.2 percent over the past four quarters.

Another sign of a strong IT economy: the number of workers employed by IT services firms rose by 56,100 this past year to 1,414,400, a 4.1 percent increase, according to last monthÂ’s BLS establishment survey of some 160,000 businesses and government agencies covering about 400,000 worksites. The active sample includes about one-third of all nonfarm payroll workers.

The increase in IT services employment reflects the continuing need by companies for outsourcers to manage corporate IT infrastructures as well as provide hard-to-find but needed skills to develop and support new applications and systems.

Not every person employed by IT services firms - officially labeled by the government as computer systems design and related services - is an IT pro, but a majority are. A 2006 government report estimates that 53 percent of IT services firms' workers hold IT jobs such as programmers; software engineers; computer, network systems and data communications analysts; or database, network and systems administrators. Another 3 percent are computer and IS managers. The remaining employees—44 percent of payrolls—encompass non-IT managers and administrative and operational support personnel, including those in finance, human resources and sales.

Besides the establishment survey, the government also queries 60,000 households to determine employment and unemployment in the U.S. For our analysis, we use a BLS quarterly report that aggregates the monthly reports and details employment in hundreds of occupation categories. The government tracks seven major computer-related job categories: computer scientists and systems analysts, computer programmers, computer software engineers, computer support specialists, database administrators, network and computer systems administrators and network systems and data communications specialists plus computer and information systems managers.

CIO Insight analyzes these eight occupation categories to determine current IT employment conditions. Because these IT professions comprises less than 3 percent of the overall workforce, and each occupation categoryÂ’s size on its own would be statistically unreliable, CIO Insight aggregates the last four quarters to determine each quarter's workforce, employment and unemployment levels. For example, we added BLS data from the last two quarters of 2007 and the first two quarters of 2008 then divided by four to determine second-quarter 2008 data. Statisticians and economists say aggregating four quarters worth of data makes them more statically reliable than just using one quarter's worth of data.

• Becomes a player in creation of the business plan and strategy processes
• Improving the Infrastructure of IT and focusing on improved service levels
• Adding value to and improving the business operational process
• Providing accurate and timely data which complies with needs of all users – both internal and external
• Driving innovation with both technological and systemic advancements

• Benefits such as 401k's and extensive health and dental insurance which are employer paid
• Work environment that allows for a personal life
• Organizational structure that lets everyone contribute to the success of the enterprise
• Ability to talk with management freely and openly
• Place where everyone has the ability to be seen by management

If we are all working hard on our careers, plus doing our jobs well, is there time for anything else? There is if you work in Utah because of the number of outdoor activities you can participate in without having to fight crowds. To succeed in our careers means not only doing well in our jobs, but making sure that our jobs support the lifestyle that we desire. Unfortunately, when people complain about balance, often the problem isn't too much work, but too little life. Solving this problem can be as simple as scheduling non-work activities or as complex as seeking flexible work arrangements. But what "life" activities should be scheduled?

Two clear facts: No one but you knows what your perfect balance should be, and no one but you can know which activities hold interest.

In the case of Utah in the winter there is skiing, and the rest of the year there is golf, mountain and road biking, fishing, hiking, and boating. 

Before the Interview and while you are employed

• Keep track of your accomplishments and keep your resume up-to-date
• Focus your resume to the job you want to get
• Leave your existing job on a good note
• Keep your professional network alive and working
• Extend your search beyond the Internet
• Extend your search to every possible job not just the perfect job
• Have a generic cover letter ready to go
• Focus on your accomplishments in your resume and cover letter – use positive statements
• Eliminate all typos and grammatical errors
• Include your personal cell phone number as the best place to contact you

• Show up on time for appointments and respond to phone and email messages promptly
• Dress for the job you want
• Remember that first impressions last
• Asking meaningful questions
• Speak positively about former boss employers
• Focus and listen to interviewers
• Researching the position and the potential employer
• Be polite and do not discuss politics or religion
• Salary should be one of the last things discussed
• After the interview send a thank you note
• Follow-up but do not be over-aggressive
• Learn from each interview – What did you do right and what did you wrong?
• Keep track of where you have applied – add to your
• Assume you will not get a response from an interview – continue your search

In large business the positions in high demand are:

• VP - Information Service
• Director Systems & Programming
• Manager Data Warehouse
• Computer Operations - Shift Manager
• Voice Wireless Communications Manager
• Manager Wireless Communications
• Data Center Facility Administrator

In mid-sized business the positions in high demand are:

• VP - Security (CSO)
• Director Systems & Programming
• Director IT Planning
• Computer Operations - Shift Manager
• Computer Operations - Shift Supervisor
• Change Control Analyst

• Focus on results produced not the way or processes that are used
• Manage by not asking questions not directing them in how to do it
• Be open to new ideas and new approaches
• Know what you know and what you do not know
• Listen more than speak
• Provide opportunities to make your staff go beyond existing limits - make them stretch
• Remember that you are the leader and manager and do not abdicate that role
  Hire people smarter and better than yourself
  

• Users Rule - No matter what the IT professionals thinks the users are always right even if they are wrong.  If the user is not does not see the right path, the IT professionals must be able to lead them there with dictating the solution.
• The Business Rules - The mission of the enterprise should be the focus of solutions provided by the IT professional.  IT professionals should know the business and the processes that drive the business.
• Organization and Goals Rule - The culture and power structure of the enterprise need to be understood and managed to by IT professionals. 
• Relationships Rule - IT professionals who are trusted by management and non-IT peers are the ones who are the most successful.

That places expansion of the H-1B visa program on a path which could ultimately lead to its reduction and or defeat.

The CSO title is also used in many enterprises to describe the leader of the "corporate security" function, which includes the physical security and safety of employees, facilities and assets. This individual often holds a title such as Vice President or Director of Corporate Security. Historically, corporate security and information security have been handled by separate departments.

The CSO has the responsibility for global and enterprise-wide information security; he/she is also responsible for the physical security, protection services and privacy of the corporation and its employees.

The elimination of jobs will put more pressure on outsource providers as there will be a surplus of employees who will be out of work.

In the 1970s that occurred in the US and that drove a recession.  The question is will that be good for the US job market or not.  Only time will tell.

According to firms that outsource and/or off-shored IT operations, Janco found that many high-wage, high-skill jobs that were once thought to be immune to outsourcing are now being outsourced.  Over 25 percent of these enterprises reported high-skill IT jobs are being sent overseas to third parties

The settlement stems from the DepartmentÂ’s finding that, between May 9, 2006, and June 4, 2006, iGate placed 30 job announcements for computer programmers that expressly favored H-1B visa holders to the exclusion of U.S. citizens, lawful permanent residents, and other legal U.S. workers. Such preference constituted citizenship status discrimination and is prohibited by the Immigration and Nationality Act.

Acting Assistant Attorney General for Justice DepartmentÂ’s Civil Rights Division said the DOJ is committed to protecting the right of all authorized workers in the United States against citizenship status discrimination.  The DOJ was pleased to reach the settlement with iGate, and looks forward to continuing to work with the business community to educate the public about the protections and obligations under the anti-discrimination provisions of the Immigration and Nationality Act.

The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) in the Civil Rights Division, which conducted the investigation in this matter, continues to monitor iGate to ensure compliance with the settlement agreement. OSC is responsible for enforcing the anti-discrimination provisions of the Immigration and Nationality Act (INA), which protect U.S. citizens and certain work-authorized individualsWorkauthind.htm from employment discrimination based upon citizenship or immigration status. The INA also protects all work-authorized individuals from national origin discrimination, unfair documentary practices relating to the employment eligibility verification process, and from retaliation.

• What are the basics of the annual wage package for CIOs of other companies?
• What is the preferred method for manifesting the compensation package into a time specific contract?
• Which elements of the equity compensation are most favored by CIOs? Why?
• How do CIOs value the different components of the compensation offer? What emphasis is placed on bonuses? Stocks? Wages?
• How does the CIO package set the tone for the other compensation programs offered to other Information Technology management team members?
• What language is important when it comes to the compensation in the employment contract?
• What are the 5-7 most important components of the employment contract to a CIO?
• Which components are the most challenging to negotiate? Why?
• Which components can be bargained away in favor of other, more important contract terms?
• What system is most effective when trying to update a CIO compensation package?
• What is the most common compensation structure for members of the management team? Why?
• What method is used to analyze the compensation structure for each CIO?
• What industry standards are applied to the compensation and employment contracts?
• What calculations and metrics are used to structure the CIO compensation?
• Which structural elements constitute the greatest amount of CIO pay?
• How is performance measurements detailed in the employment contract and compensation agreement?
• Which Information Technology positions are most closely tied to performance measurements? Why?
• How are complicated elements of the compensation plan analyzed and monitored?
• What procedure is used to peg compensation to other organization goals?
• What schedule is outlined for reviewing compensation against performance goals?
• Which incentive based elements of the package are preferred by CIOs?
• Which elements of the employment contract are most important to CIOs? Why?
• What negotiating strategies and techniques are most successful?
• What are the most difficult terms to negotiate? What can the CIO do to prepare for these hot topics?
• What language must the CIO or CIO insist upon when it comes to the employment agreement?
• What are the non-financial aspects of the contract? Why are these important to CIO level management?
• What must CIOs be careful about when it comes to date specific terms of the compensation and employment contract?
• How much time and money should a CIO budget for negotiating?
• What is the impact of poor negotiations on CIO performance?
• When is it best to work through a third party?
• What process is used to facilitate stalled negotiations?
• How are CIO level employment contracts changing? Why?
• What is the impact of these changes directly on the contracts? Which trends do you expect to benefit the CIO?
• What terms or issues can CIOs expect to deal with in the future, in light of recent trends?
• What techniques can management use to get a better compensation package?
• When does it make sense to go to the Board of Directors regarding pay? Why?
• Why is it important for both parties to be satisfied with the contract? How is this accomplished?
• What methods are CIOs using to keep their contracts progressive?
• How do the current tax laws influence changes to CIO employment contracts?
• What impact do corporate rules or policies have on the CIO compensation?
• Who is most actively involved in developing company policies that impact compensation? What is the trend?
• What are the challenges to CIOs who are looking to improve their package?
• What is the current thinking companies regarding deferred compensation? Why?
• How can the Board of Directors guide the employment contract process?
• What is the typical timeline for completing an agreement once the process has started?
• Who is most instrumental in facilitating the negotiations? Why?
• Which deadlines are most important in the employment contract?
• What are the biggest mistakes CIOs make when negotiating employment contracts?
• How consistent are the agreements across members of the management team?
• When is it allowable to operate without an employment contract? What are the risks?

The new CIO was a managing director who led the Morgan Stanley Application Infrastructure group.

According to an internal Morgan Stanley memo, the new CIO will leave Morgan Stanley at the end of the month to pursue opportunities outside the firm.

The memo also indicated that the new CIO is no stranger to Google. While at Morgan Stanley, one of his projects was working on initial public offering of Google in 2004, the memo.

The last CIO at Google, left to become president of the EMI digital unit. Earlier this month, rumors surfaced that Morgan Stanley executive would be the new Google new CIO.

Running the Google computing infrastructure is a daunting challenge on which the companys success hinges. Google not only has thousands of servers housed in at least 36 data centers scattered around the globe, but also a build-it-yourself culture that means the company is responsible for maintaining much of its own technology.

The CIO worked for Morgan Stanley computing operations for nearly 14 years including having worked on first Morgan Stanley Web site, its workstation software, and its intranet.

• 65,000 H-1B visas are issued each year
• 3,117 H-1B visas were issued to Microsoft in 2006 and the average wage for those holders was $100,000 including benefits.
• 19,000 H-1B visas were issued to companies based in India in 2006
• $50,000 was the median compensation paid for H-1B visa holders in 2006

Although IT organizations certainly understand these workforce trends, many are not taking significant measures to mitigate the risks that the loss of intellectual capital seems to portend. Even outside of IT, many companies seem unconcerned by boomer retirements. In a 2006 survey of 488 companies only 42% of the respondents said that the aging workforce was a significant issue, and 29% said it had little or no significance.

And in a nationwide study of 550 human resources managers conducted by Monster.com last summer (view PDF), only 12% of the respondents said they consider knowledge retention a high priority within their companies, even though one-third said they expect at least 20% of their workforce to retire in the next decade.

The inescapable conclusion seems to be that many businesses are perfectly content to see their boomers walk out the door. And because so few organizations have taken the retirement issue seriously, companies that want to transfer knowledge from older to younger workers have few models to follow. As a result, those that are attempting to get ahead of the retirement wave are finding themselves pretty much on their own.