Thursday, July 27, 2006

CIO Executive Council 2006 Survey "Where the IT Cuts Are"

Here's that article that I was referring to in my last post. Galen Gruman wrote a good article for CIO about strategically cutting IT budgets. You can read the article yourself and draw your own conclusions. What I found most interesting were some of the CIO Executive Council survey results. In short CIO's surveyed said they were cutting 35% of their freelance budget next fiscal year.

I would think that could also be interpreted as they need to get a better ROI on their freelance contractor services. As being in the ERP game for many years I believe it's a lot easier to look at the type of freelance services my company is hiring and from whom they are being hired.

Many Tier 1 interrogators (IBM, Accenture, DT, KPMG, etc.....) have gone into the staffing freelance contractor business unknowingly to the company that hired them. Before long the Tier 1's strategic services solution quickly turns into presentation of resumes to fill niche roles that weren't planned for in their original assessment.

Here's the kicker..... these resources are marked up 2.5 times their salary. So where is all that value going. So again I ask the question; are the CIO's looking for a better ROI of their freelance contractors or a flat 35% of the aggregate IT spend? The answer was always clear to me.....
Thoughts?

Wednesday, July 26, 2006

Pay rates for IT contractors have increased to meet the surge in demand, research has revealed.

Demand for Contract resources is also up in the UK......

Couldn't agree more with Ann Swain, chief executive of Atsco, said, "Contract IT personnel, such as Java programmers, have long been a feature of IT departments but until very recently the IT director would have been a full-time employee. That is now changing. "IT departments are always under pressure to contain budget growth and they are starting to be much more aggressive about controlling the costs of their most senior staff."

We have seen this in the US for some time now.... Heard some interesting tidbits of info that I'm going to try and track down to post from a recent survey. Stateside CIO's are being forced to reduce their IT budgets, what budget line do you think it's going to be cut from? Stay tuned.....

Thursday, July 13, 2006

Oracle AIM methods updated

Interesting article from Richard Byrom, really demonstrates that not much is changing from the methods and practices used to deploy Oracle. Once again why do companies continue to pay the large fee's for approaches that are not new?

Implementing or upgrading your ERP solution yourself.

Remember the movie the "Jaws" when Roy Scheider's character first saw the shark... His response was 'I think you're gonna need a bigger boat". Well that's exactly how many Project Mgrs feel when they engage a Tier 1 integrator for the Oracle Implementation. In implementing many Oracle and other ERP applications I have come to the conclusion that there really is no easy answer, and no quick fix to seamlessly implement Oracle. It's not a case of choosing an integrator to do it all but balancing your internal staff to implement YOUR Oracle solution.

The reality is that they have the knowledge and expertise in house to support the ERP initiatives.

Check out www.selfsourcing.com. There we discuss some datapoints on what is actually happening for Oracle and other ERP implementations. You'll also find some interesting methods and approaches for doing it yourself.