It's a new year and a new look for our quarterly newsletter - HOT TRENDS has now become NEWS & VIEWS. We think the new name is a better reflection of what each issue will offer you - news of what's going on in the technology talent market, and our views on how it impacts you.

One of the current topics among IT executives is personal growth and career planning. Because our Dynamic Leadership Solution^™ program is dedicated to this, I was recently invited to give an interactive presentation at the March SIMNY luncheon on "Creating a New Career Game Plan for the IT Executive".

The audience worked through a series of written exercises to assess their current situation, and refocus their efforts and those of their teams to both minimize the amount of time spent working on unfulfilling tasks, and to maximize the time spent working within their unique abilities. We discussed how the delegation of responsibility can enhance the careers of not only the team leaders, but also of the team members who can leverage success with their new responsibilities into career growth and increased recognition and compensation.

During the Q & A part of my presentation there was lively discussion around the difficulties and rewards of gaining buy-in from your management and your team in making the changes necessary to achieve your goals. I got a tremendous amount of feedback on how frustrated many of you are with the constraints you have been working under and the stress it has caused. That is why I absolutely advocate that in order to take back control of your personal and professional lives you must have your own customized game plan.

The premise behind a game plan is: you have to articulate it - to visualize it - to define and overcome the obstacles to your success - to make it a reality. All of the executives that we work with that have developed and adhered to a career game plan are more successful, more relaxed, and have happier personal lives. To paraphrase the team at Ford - to ensure your success make sure that "YOU are Job One".

The return to a healthy economy can be a mixed blessing for corporate America. The good news is as the economy gains momentum, the demand for goods and services increases; the bad news is with a stronger economy there are more career options opening up for the key people that made your company successful and they are now showing an increased interest in jumping ship.

Since the hiring frenzy of the dotcom era died down, the lack of outside opportunity kept many executives virtually tied to their current employers, and kept compensation (not to mention those same executives) depressed. Job stability and the prospect of a steady paycheck were the level of executive incentives being offered, while bonuses and equity were kept to minimums. The balance of power was definitely tilted in favor of corporate management.

But times are changing - in the talent market of today we are experiencing the beginnings of a shift in this balance, and smart management is taking note of the warning signs, and taking action to make the option of staying more attractive than the option of leaving for greener pastures.

Corporate America is starting to emulate the Major Leagues - with their own concerns about the draft effect they are identifying their key players and evaluating what steps they need to take to keep their star players happy and loyal. Incentive packages are being sweetened, and golden handcuffs are being polished up once again. Career paths are becoming more attractive with IT executives being offered the opportunity to move into leadership roles within lines of business and not just being siloed. Companies in the market to attract new talent are reevaluating their hard line stance on compensation. Both the interview process and the annual review process has returned to being more of a courtship - with both sides realizing that there has to be a mutual sense of attraction and loyalty.

Talented executives are starting to flex their muscles again, and accept those phone calls promising new opportunities - if only to comparison shop between their current situation and the potential out in the market. They are also much less inclined than they were in the past to accept counteroffers - harboring the belief (and the resentment) that the offer should have been made first instead of in reaction to another employer trying to hire them away. So to prevent this scenario from occurring, prudent corporate management, working in partnership with their Human Resources leadership, is being much more proactive on setting strategies for keeping their core team intact, and are taking steps to make their company culture and working environment as attractive as possible. Retention has once again become an important concern.

The economy is coming back and so is freedom of choice -if you want your key executives to stay with you, make sure that becomes the most attractive choice.

Will the continued decline in the value of the U.S. dollar have any effect on the continued growth of outshoring or nearshoring? Many advocates proclaim that in the long-run there may very well be some adverse effects but currently the competition is so intense that providers, especially from India, will hold prices for the near term and not try to go back to their customers and negotiate new contracts. In the long term U.S. companies can expect to see prices rise as these providers try to cope with currency pressures and rising wages.

The service providers from India may not hold out indefinitely. Users of these offshore providers, whose contracts are usually negotiated in U.S. dollars, may see prices increase along with contracts that share the risk of currency changes. Contracts will possibly be structured that lock in labor rates for a defined period of time or lock in lower labor rates with periodic adjustments made for inflation or currency changes. Many companies aren't concerned with the currency issue since the spread in labor rates is so great. An example of this can be seen in the price of an I/T programmer. In the U.S. the programmer would receives approximately $100.00 per hour while that same job in India would pay approximately $15.00 per hour. Prior to 2001 when these contracts were negotiated this was the typical picture but today you have to take another look. As labor rates for programmers in the U.S. have dropped to $35.00 to $50.00 per hour these rates in India have increased to $25.00 per hour. Although rates will continue to increase in India, U.S. companies will still appreciate considerable savings for the next three to four years.

In my opinion, even with the shrinking savings, the attractiveness of offshoring continues to grow. Companies will begin to explore other regions of the world to outsource and reap the savings as they do in India. India was the shining light that initially captured all of the commodities in the I/T service areas namely call center support, help desk, application development and data center support. India was a safe haven with an abundance of well educated English speaking people with full support from their government for these initiatives. Now that companies are over the learning curve and offshore vendors are maturing, more applications can be outsourced and companies will explore other regions of the world (China and The Philippines) to capitalize on the savings. With the average I/T person costing $160,000 per year on Wall Street you could hire four people in southern China.

The currency issue will continue to be watched very closely and gain more attention. The dollar is down 13% since early 2002 when weighed against all currencies. This change varies by country: Weighed against the Indian rupee, the dollar is down 7.5% since 2002, but against the Canadian dollar, it has dropped an amazing 18%.

Q-	I am currently the CTO of an insurance services company, and was wondering if CEOs and their senior management teams have any new expectations regarding their technology executives, compared to a year or two ago?
A-	Yes, there are new expectations that senior business management teams have of their technology executives. The major emphasis is on the ability of CIOs, CTOs and their direct reports to understand and articulate the business needs of their clients to their technology teams in order to formulate and deliver technology solutions that will add value to the business. Additionally, technology executives at all levels, are expected to contribute ideas and approaches that will favorably impact the way business is done, through innovative ways of applying technology to the business. In other words, technology executives with a future need to add entrepreneur, focused articulator, successful persuader, and business subject matter expert to their list of skills and passions.
Q-	I am the CEO of a medium-sized pharmaceutical firm in need of a new CIO to replace our incumbent CIO, who has not delivered on his promises to the business user's satisfaction. For continuity purposes, this search must be conducted on a Confidential basis, which is why I'm considering an executive search firm. But, with all the I.T. talent available in this current marketplace, shouldn't I be entitled to a substantial discount on the fee, just like any other oversupplied commodity scenario?
A-	This would make sense if we were dealing with a commodity, but the reality is that finding the right CIO that fits your corporate culture in addition to meeting all the technical and managerial requirements of the position, is not a process that lends itself to commoditization, nor is the product a commodity, i.e., the right CIO. Just as you more than likely would get the best possible advise and counsel if you had a serious legal problem, or would only want the best surgeon available if you or a loved one had a serious malady, in the same vein having the right leader for the technology that drives your business is a critically important decision for you and your organization; one that shouldn't be minimized by compromising the cost of doing business.
Q-	I am the divisional CIO of a leading financial services firm based in San Francisco. I'm originally from Long Island and would be interested in positions in New York. Have you seen any lift in technology opportunities since the sharp downsizing and cutbacks of the past several years?
A-	Yes, I'm pleased to report that technology positions in New York City have shown a significant move in the right direction in the past six months, with more to follow, particularly in the financial services sector. After a drought in senior technology positions for over two years, we have taken on a number of New York City searches in the fourth quarter, with others to follow as 2004 unfolds.

This is truly a time to celebrate new opportunities for growth and change in our lives. Spring is a time of new beginnings bringing new energy with it. It is also the season of reflection and change. It is the time of the year to make decisions, map out plans and start new projects.

This is the time to learn from nature. Cut out the dead branches or negative thoughts that keep us from fulfilling and enjoying life. The desire to sweep away the cobwebs and open the windows is intoxicating. The cool, clear air of spring helps us all to breathe in anew and blow out the old.