IT resourcing after the recession: update your choices

Six months ago, I published my blog IT resourcing during the recession: call for tough choices. Since we seem to slowly climb out of the recession, I want to review if anything has changed regarding the HR observations I made. Using the same bullets, these are the adjustments we need from here.

1. What can you afford
   Based upon analyst reports it seems that the majority of IT-budgets will either remain the same or will grow with a few percent. This means there is room to hire in most shops. In various talks I had with executives they will hire but keep some reserve in their budgets.
2. Look at your employee/contractor ratio
   It seems that quite a lot of managers have taken up my advice to stick to that “one very experienced external resource with specialized skills”. The problem is that these resources now are at the end of their assignment, have often lowered their rates upon your request and now wonder what to do next. My advice: find them a new project and book them for a longer period to show your appreciation.
3. Your IT-portfolios outlook for the next 2 years
   From what I hear not much has changed yet since project portfolio were re-defined last year. Until your internal customers start planning massive new projects, resource requirements should not be an issue.
4. What is the prediction for your local IT labor market
   Predictions about scarce ICT resource are widely seen throughout Europe now. Companies who were able to keep their resources on board will be thankful. Those who have to re-hire should expect prices to rise quickly.
5. Ask your people what they want
   Did you ask for ideas from your people? It seems at least a new/revived consultancy market is emerging based on employee empowerment and group dynamics. Now business spring is emerging, re-evaluating with your teams seems eminent.
6. Outsourcing on project basis
   Outsourcing will always be a route to consider, especially since the quality of performance by local players seems to grow steadily. New initiatives around outsourcing supporting/horizontal business processes, will give extra opportunities to deploy your own resources differently.
7. Can you make clean choices on whom to keep
   A by-product of the recession is that companies, trade unions and magistrates are more open to other solutions than “last in first out” principles. This will change back quickly to the old behavior. If you haven't completed the rightsizing of your teams, now is the time to complete the steps to get rid of the non-performers.

In summary: creeping out of the recession most HR-considerations remain the same. Completing the planned changes and sticking to the strategy you designed is now important and some next steps seem logical. Do you agree or are still other radical changes required? Please let me know.

hans.van.nes@results2match.com

PS: We wish you a healthy and successful 2010!