This is my 30,000 foot look at events in the ICT industry for November 2010. What you see here is a précis of the monthly report I produce, which will be available in more detail at the News section of the Eagle website, where you will also find back issues.

I think its interesting to look back and see what was news in previous years, and how it might affect news today. Perhaps one of the most noticeable things I see is that some of the most successful and largest companies have a track record of growth through acquisition, and with practice they get very good at it!

Three years ago in November 2007 the big news was IBM’s $5 Billion purchase of Cognos.   There was a fair bit of M&A activity, with AOL being very active, Telus buying Emergis, Randstad buying Vedior to create the second largest staffing company in the world and DELL making a couple of acquisitions.  Two years ago in November 2008 the big news was the economic maelstrom that took the world by storm.  There was some M&A activity with AT&T paying $944 Million for Centenial Communications and Fujitsu paid $575 Million to buy out Siemens from a joint venture but the biggest “noise” was about layoffs and the general impact of the recession.  Last year in November 2009 there was still a “hangover” from the recession, but the general mood was more optimistic.  There were still layoff announcements, Adobe (680), Microsoft (800), and Rogers (900) all announced layoffs and Right Management told us that as many as 80% of employees may look to change job as the economy recovers! Employment figures were not good but GDP projections for the US and Europe were positive.  The big news in M&A saw HP buying 3-Com for $2.7 Billion and Nortel continued to sell off its assets, this time its Metro Ethernet Networks business to Cienna for $769 Million.  Google also made a couple of acquisitions, including paying $750 million for AdMob. 

That brings us to November Twenty-Ten and while there is still considerable financial pain around the world in places like Ireland and Greece, the recovery continues and some countries are doing particularly well.  There was plenty of good news this month, in and amongst all that “global chatter”.  In Canada we added jobs and the unemployment rate improved a little to 7.9%, as opposed to a blended EU unemployment rate of 10.1% and a US unemployment rate of 9.6%.   The US also gained jobs and there were several positive reports about prospects for growth and continued recovery … including a global snapshot looking at jobs for professionals and managers; a Canadian IT hiring trends study from IBM and Sapphire; and a positive outlook from the Global Purchasing Managers Outlook.

In other news the Chinese were in the press for a couple for reasons … they now have  the world’s fastest supercomputer, plus they hijacked the internet for 18 minutes, causing great consternation in US security circles!  Facebook continues its march of dominance and apparently accounts for a quarter of all page views and 10% of all internet visits (Hi Mom!)! 

Some companies in the news include Verizon that agreed to pay back $52.8 million to subscribers who had been overcharged … plus a $25 million payment to the US Treasury.  Dell moved off the blackberry in what could be an uncomfortable time for RIM, especially when coupled with the growth in Android phones … taking market share from all other suppliers.  Yet the biggest news was likely the $1.3 Billion judgement against SAP for piracy of Oracle software … through its subsidiary TomorrowNow.

On the M&A front it seemed to me to be a quiet month looking back BUT actually there were some BIG deals.  That perennial acquirer EMC paid $2.25 billion for Isilion;  Attachmate (I thought that was a tool company) bought Novell for $2.2 Billion;  Oracle paid $1 Billion for Art Technology Group; and apparently Japanese company NTT paid $1 Billion for Keane.  In the “below $1 Billion camp”, Amazon paid $500 million for Quidsi; ABRY Partners paid $84 million for Comforce; Juniper Networks bought Trapeze Networks for $152 million and there were a few smaller deals too. 

Overall November seems to have been quite an interesting month … and with all the positive reports that keep coming I don’t understand why the negative “stuff” is so prevalent.  Keep positive, walk fast and smile!  That’s what caught my eye over the last month, the full edition will be available soon on the Eagle website. Hope this was useful and I’ll be back with the December 2010 industry news in just about a month’s time.

Kevin Dee is CEO of Eagle (a Professional Staffing Company)
Let Eagle find your next Finance and Accounting Professional anywhere in Canada?

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I should preface this post by admitting that I am not a lawyer or accountant and therefore can offer no legal advice on this subject.  The following is merely my opinion based on  more than 14 years owning and operating my own staffing company, and having served for 9 years on the staffing industry association board (including a year as President).

A current topic of conversation in the world of independent contractors (ICs) is a potential “focus” by (Canada Revenue Agency (CRA) on determining the true independence of people operating as “independent contractors”.   A couple of bad things that can happen to an IC are (a) they are deemed to be an employee; or (b) they are deemed to be on a personal services contract.

Neither is good because it is likely that, in either case, any and all tax deductions will be denied (back for several years) and if deemed an employee there will be messy fines for non-deduction of normal employee deductions etc.  Not good for the independent contractor.  Not good for the staffing industry.  Not good for the staffing industry’s clients … and by definition, not good for the Canadian economy.

The purpose of this blog is to talk about the kind of things that ICs can do to prevent this situation … I can blog another time about why they (and their status) is important to Canada’s economy.

Things to be cognizant of when operating as an IC.

1. You need to think and operate like a business owner … NOT an employee.
2. You should read up on the rules that CRA use to determine independence (pay particular attention to “control”)
3. Incorporate as a company!
4. You should do anything you can to differentiate yourself from the employees that you will invariably working alongside.  You should NOT look, act or “feel” like an employee.  Some thoughts on that:
   • Pay for any training you take … it doesn’t need to be a lot of money, but pay something.
   • If you go to an employee social event paid by the employer, pay something towards your attendance … it could be a donation of a door prize?
   • Try to dress just a little smarter than the average … not out of place, just always professional.  Dress shirt instead of golf shirt; tie versus no-tie etc.
   • Don’t keep regular “employee hours” … get there a little earlier (even 15 minutes) and leave just a little later.
   • Do NOT get involved in office politics.
   • Have an accountant that understands the IC world.  Note that they all know it to some extent, but someone who really understands it is invaluable.  This person needs to ensure you are staying onside with the tax rules.
   • Have a lawyer that also understands it … can ensure you are set up correctly.
   • Work with (register with) several agencies … you do not want an exclusive arrangement with any one agency.
   • Have your own tools … most likely you won’t be bale to use your own computer on the job for many business reasons … security, access to systems etc.  However you can use your own tools to manage your business, your own pda to manage your schedule etc.
   • Be a good corporate citizen … give back to the community.   (It makes you look and act like a business).
   • There are no rules with CRA about how long you can work at any one client.  However … the longer you are on a contract the more you start to look like an employee, and the harder you will need to work to look like a business.
   • If you can demonstrate obvious risk of income it helps … fixed price, deliverables based contracts are one good way.  You do have risk of payment because if the client doesn’t like your work in any given pay period they can choose not to pay you.  As a business that is a good thing, you need to deliver good work and you will be paid.
   • If you can take on other clients with your business it helps … even charitable work that is unpaid.  You can do work. Provide an invoice and credit the work … might even be tax deductible.

This is not exhaustive but gives you a picture.  You do NOT want to look like an employee.

Kevin Dee is CEO of Eagle (a Professional Staffing Company)
Eagle finds GREAT Technology Resources for our clients across Canada!

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We have been through one of the toughest recessions in living memory and generally speaking Canadians have fared way better than most other countries.  One of the ways that we do this is to cut back on non-essential spending … we watch the expenses and work hard to keep the dollars coming in.  Sometimes one of those expenses that we cut back on is charitable giving, and that is tough on the charities.  I am involved with a number of charities … and right now the United Way is in the middle of its annual campaign and it is tough going. 

We NEED some help.

I get involved and am willing to help out where I can, a little while ago I blogged about my efforts to help out on the cancer front.  I asked the question Are You Willing to Give Blood? for charity … and I was talking about the fact I have volunteered to jump in a boxing ring and go three rounds for charity next March in the Fight for the Cure.  I will be looking for volunteers to buy tickets and cheer me (or my opponent) on nearer to that date!

Just a couple of days ago I suggested that If You Have Been Lucky in Your Life then Help Someone Else Out … I also talked about the surprising number of people that need our help!

The United Way helps out so many agencies each year that its influence in our communities is huge.  If  the United Way fall short in donations this year then it is the poorest members of our society that will be hurt.  So here are some ideas for helping out …

1.  Increase your gift this year, just a little bit … 5% or 10%.  That would make a huge difference.

2.  If everyone gave a dollar a day to the United Way it would be huge.  Can you afford a dollar a day?  A $365 donation that is tax deductible.

3.  Many people have their favorite charity, heart, cancer, humane society etc.  Thank you for helping out … because that gives back to our society in exactly the same way as those who support the United way.  My question to you is could you dig just a little deeper?  Could you find it in your heart to give an extra few dollars to support the needy in your community?  Don’t give your dollars to the guy on the street so they can feed a habit … give it to the agencies that provide them with the necessities of life!

When I first got involved with United Way I was astonished by how many people are touched by this agency.   YOU WILL know someone who is helped or has been helped by a United Way agency … whether it has to do with poverty, addiction, mental health issues, seniors, troubled youth etc. this organization is helping to make YOUR community a better place.

Enough sermonising … please help!  Give a few EXTRA dollars to the United Way and help make our community a better place.

Kevin Dee is CEO of Eagle (a Professional Staffing Company)
Have you tried Eagle’s (very cost effective)VirtualRecruiter service?

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Life is BUSY!

We all tend to work hard … the pace of life is crazy, and there are more and more demands on our time.

So … how do you recharge the batteries? 

This weekend we went to New York for a mini-break.  We took in two shows (Memphis & Million Dollar Quartet), we walked a TON, we shopped, we ate and did a bus tour.  We didn’t sleep in late, and we even skipped our regular exercise routines … but it was a break from our usual routine.

Would that have been a good break for everyone?  Absolutely not … which is the point!

We are all different, we have different priorities, different pressures, different schedules and different ways of feeling good about ourselves.  What works for me might be absolutely terrible for the person next to me.

Life is like that … and work/life balance is also like that.

I used to work for Bob (Bob’s rules) and he was probably one of the most hard working people I have met.  Yet he loved what he did, he felt he had great work/life balance for him … but recognised that it wouldn’t work for everyone.

So, I guess the answer to work-life balance is the same as to “how do you recharge your batteries?” … it depends?  You need to know yourself, and to figure it out for yourself … but also know that what works at this stage in your life will very likely change in the next!

A tour guide on a bus used the following phrase, “Just because I look like I’m having fun, doesn’t mean I’m not working hard”.  In her world she wanted the tourists to still give her a good tip … because she was working hard.

In my world just because I’m working hard it doesn’t mean I’m not having fun!  If you can reach that place then you will never again worry about work-life balance … just getting enough time to recharge the batteries!

Kevin Dee is CEO of Eagle (a Professional Staffing Company)
Eagle finds GREAT Technology Resources for our clients across Canada!

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General Observations:

In October Canada had a net gain of 3,000 jobs based on 47,000 new full time jobs and the loss of 44,200 part time jobs.  The unemployment rate improved slightly to 7.9% from the 8.0% reading in September. 

The Canadian dollar has flirted with parity to the US dollar over the last month or so and at time of writing was at 98c US.  The markets continue to show some volatility but having said that there has been no precipitous drop or huge gain over the last month.  The general trend remains positive and the TSX was basically the same as last month with a reading of 12,657, after a 500 point gain the previous month.

October for Eagle was a VERY busy month and we are definitely seeing increasing demand almost across the board.  The GTA (Greater Toronto Area) continues to lead the way, but not far behind is the Alberta market with Calgary getting very hot and Edmonton heating up too.  Montreal and Vancouver continue to show signs of life but the National Capital region is just not a hotbed of opportunity at the moment.

More Specifically:

The GTA (Greater Toronto Area) has been Eagle’s busiest market for most of this calendar year.  It was the first market into the recession, probably because of the financial sector, and for that same reason was the first market out of the recession.  Demand does not seem to be abating and we are experiencing as busy a period as we have encountered in many months … yippee!  Our observation would suggest this boom is affecting the large system integrators too, who are winning their share of business too in addition to the staffing players.  This makes Toronto a great place if you are looking for a job and happen to have the in-demand skills … the biggest demand being functional experience in the financial or telecommunications sector.  Technically the demand seems to be across the board, developers to project managers and network analysts to business analysts.  This spike in demand again means our clients MUST act fast to get the best people, who generally all have multiple opportunities.

In Western Canada, the demand for people in Calgary continues to boom and the Edmonton market has also heated up.  In Calgary, employers have found that they need to make hiring decisions quickly in order to get the best talent because people are getting multiple offers, and decisive hiring wins the day.  Business analysts with pertinent industry experience are still an in-demand resource, but companies are ramping up across the board looking for everything from developers to project managers.  We are also seeing a growing number of demands for accounting resources from junior positions through VP roles.   Edmonton has seen a spike in demand for full time resources, the integrators seem to be getting busy here and there is a general buzz in the market.  While Vancouver has gotten a little busier there are still good candidates “out there” looking for their next job.

Eagle’s Eastern Canada region remains a little slower than the rest of the country although Montreal is the bright light here with an increasing demand, most particularly in the full time space.  This demand, like Toronto, is coming mostly from the banking and telecommunications industries. The National Capital Region seems to remain slow, with no big initiatives starting and most of the opportunities being hotly contested at very low rates.  There is also a continued pall from the CRA’s focus on the “independence” of incorporated contractors, government reviews on the use of temporary help and a procurement process that appears to be having serious challenges.

The following are some facts/indicators we are watching as of time of writing:

> The price of oil is back down just a little at $80.78, but with HST those in Ontario are paying more to fill their tanks.
> We continue to hear about volatile markets, international concerns about debt and inflation/deflation but the bottom line here is the TSX is about where it was last month, a healthy 12,657.
> The Canadian dollar has flirted with US dollar parity several times recently, but at time of writing it sits at 98cents US.
> Prime remains at 3% after three recent increases, and is not expected to rise again soon!
> Canada added 3,000 jobs net based on 47,000 new full time jobs and the loss of 44,200 part time jobs, and for the second month running there was a slight improvement in the unemployment rate to 7.9% from 8.0%. 
> Eagle continues to see a pickup in activity in most sectors, banks, energy companies, and telcos in particular.  Clients are recognising the need to develop recruitment and retention strategies, in addition to having smooth efficient hiring practices.
> The Canadian Federal government seems to have slowed spending and reduced its employment ranks.  Suppliers in this market are all hurting a little.  The focus on independent contractors and the staffing industry is particularly painful.

 Summary:

The story has been the same for some time now … the recovery is slow but steady, however it IS a recovery.  The Staffing Index is only 6 points off its benchmark 100 points which was set pre-recession, and across the staffing industry I am hearing that almost everyone is busy.  Companies are still very conscious of containing costs however, so we still hear that outplacement companies are busy … which means that there are still some good people “out there”, for now!

For some months it has been the financial sector and telecommunications sector that have been hottest, with insurance, retail and government all “picking up”.  The GTA remains the hottest job market in Canada, followed relatively closely by the “getting hotter” Calgary.  After them we are seeing lots of activity in Edmonton and Montreal, some increased business in Vancouver but still a little slow in Ottawa. 

The financial markets have been relatively steady if viewed month by month, rather than hour by hour which is what seems to get the press “excited”.  World “crises” such as economic problems in Ireland, Greece et al will get brought under control.  The perceived economic imbalances created by an artificially low Chinese currency for example will get resolved and our global economy will get back to the reality that “we are so interdependent in this 21^st century, that we just have to make it work”.

That is my monthly look at the Canadian job market and some of its influences.

Kevin Dee is CEO of Eagle (a Professional Staffing Company)
Let Eagle find your next Finance and Accounting Professional anywhere in Canada?
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I am a very lucky person. 

I live in Ottawa, the capital of Canada.  Its a beautiful city with high employment, lots of green space, museums and galleries, beautiful neighbourhoods and low crime rates.  We are very close to ski hills (5 smaller ones within an hour of the city and Mont Tremblant just 2 hours away).  You can get to the US border in less than an hour and visit upper New York state, you can be in cottage country in minutes, you can party in Montreal in about 2 hours. 

I am truly a very lucky person.

There is another side to this beautiful city that I live in.   Nineteen percent (19%) of children under the age of 6 live in poverty.  One in four families with single moms lives below the poverty line.  Somewhere close to 8,000 people need to use the shelters and about 9,000 teens are using drugs.  Twelve percent of our community live below the poverty line.

I am a lucky person.  I don’t have any of those problems … personally. 

BUT, those are my neighbours.  They are the people I pass on the street, they might be related to people I know.  They are part of the community in which I live … that same community that has given me an opportunity to live a full and rewarding life to date.  So … it is my responsibility to help those people, and all the others in our community who need a hand.

This time of year is when the United Way runs its big campaign, and it is one of the charities that I personally believe is making a huge difference in my community.  I give money to the United Way, I give my time to the United Way and I am doing what I can to encourage everyone to get involved with helping our communities … and the United Way is just one of the great ways to do that.

I wrote a blog entry not too long ago about why we should all give back … check it out if you want a reminder.

I wrote another entry a month or so later about How Much to Give … which is worth a read if you are struggling with that thought. 

Be a part of fixing those parts of our communities that are broken … the world will be a better place for it.

I am a lucky person … and I’m doing my bit to help others be lucky too.

Kevin Dee is CEO of Eagle (a Professional Staffing Company)
Eagle finds GREAT Technology Resources for our clients across Canada!
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Every now and then I write about different traditions, celebrations or interesting cultural events … as my way of sharing information.  The better educated we are then the more tolerant we become … and given that we live and operate in an increasingly global community its important to understand our neighbours.

Eid Al-Adha is one of two Islamic feasts celebrated each year. The word Eid translates to “feast.” Eid Al-Adha traditionally lasts for three days and in 2010 falls on or around (according to the lunar calendar) Nov 17th. 

One important aspect of Eid Al-Adha is that it commemorates Abraham’s (Ibrahim) readiness to obey Allah and sacrifice his son, Ishmael.  At the last minute of this sacrifice, Allah spares Abraham and allows him to sacrifice a goat instead.

Eid Al-Adha celebrates the faith and obedience of Abraham, and the mercy that Allah can show. Animal sacrifice is an important part of the feast. The sacrifice of generally sheep or goats is shared with family, friends and the needy. 

The second important aspect of Eid Al-Adha is that it is the end of the Hajj or pilgrimage to Mecca for the year. Those who have made the Hajj celebrate Eid Al-Adha with particular joy. 

Eid Al-Adha also is an important time for family and friends. People dress in their best clothing and share meals. They visit family members and friends. All are expected to attend the mosque for special prayers, and sometimes a brief talk from the Imam.

Kevin Dee is CEO of Eagle (a Professional Staffing Company)
Have you tried Eagle’s (very cost effective) VirtualRecruiter service?

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I was part of an event this morning organised by one of our industry associations of which I am a board member … NACCB (Canada).  We had three very senior government technology executives talk about their challenges and how they might relate to our industry.

I was struck by a number of things …

1.  This was a sold out event, and the feedback from everyone i spoke to was that it was excellent information and a great way to learn about three different government departments in one place.  So … why don’t we do this more?

2.  The public sector guys spoke about all of the same “stuff” we talk about in the private sector … productivity, return on investment, value etc.  So … we are more alike than most think. 

3.  These senior people get bombarded with requests for meetings to the point where they need ways to handle it (one has a specific number of meetings a week rule).   They gave good advice … call the relevant person in my organization, not me “I am not involved at the level of detail that makes any sense!”  So  … despite the old sales methodologies teaching us to start at the top and work your way down, the word from “the horses mouth” is deal with the appropriate person!

4.  There are perceptions that civil servants don’t work hard and have a stress free life.  All three of these executives had private sector experience and, today as senior civil servants all are under tremendous pressure to deliver, from their client base, from the politicians who drive departmental direction and with scrutiny coming at them from every corner (Auditor General, Program reviews, the press etc).  It is a great reminder that in order to serve our clients well we need to understand their pain … today some of us in the room learned a little about their pain.

5.  Generally I was reminded that communication is a GREAT thing.  The more we talk, the more we understand and so often the more we find that we agree about!

It was a good event, the speakers were great and it was time well spent for everyone.

Special thanks to Mostafa Zommo from HRSDC, Peter Bruce from Agricuture & Agri-Food Canada and Fil Gagliardi from Fisheries and Oceans.

Kevin Dee is CEO of Eagle (a Professional Staffing Company)
Let Eagle find your next Finance and Accounting Professional anywhere in Canada?

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People experience health issues due to cigarette addiction … but they don’t give up.

People have health issues because of excess weight or lack of fitness … but they don’t fix it.

People live their lives in careers they hate … but they just count off the days to retirement.

People live their lives wondering what it would be like to go to a hot destination … but never venture far from home.

It is one of the defining differences between man and the animals that we have free will, the ability to make choices and to define our own destiny … and yet too often we don’t.

So … I blog about goals, I blog about attitude, I blog about success because I am someone who not only believes I can do things, I actually get off my backside and make it happen.

That is ALL it takes … the WILL to do it.

Are you going to “Do It” … whatever it is that is important to you?  The chances are that you won’t, but I would LOVE you to prove me wrong!

Kevin Dee is CEO of Eagle (a Professional Staffing Company)
Eagle finds GREAT Technology Resources for our clients across Canada!

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I used to work for Andersen Consulting, now known as Accenture.  One of the things I most admired about “the firm” was the fact that the company never stood still, it was always looking to reinvent itself.  In addition to admiring that quality it was also something that drove many employees nuts!

Fast forward to today and as a business owner I value that lesson in business, as much as any I have ever had!

Even when things are going really well we need to be looking forward, anticipating the coming changes that will affect us and developing the strategies that will make us a successful company “in the tough times”.

Eagle started life as a pure IT Staffing company and enjoyed good success from day one.  I can vividly remember sitting with a friend of mine who had also worked at Andersen Consulting and him asking me, “Is Eagle successful because it is really good at everything it should be, or are you successful because the market is hot”?

Ouch!  I was a little flippant with my answer, but Bob was a guy who was not going to let me off that easily!  I replayed that conversation again and again.  He was right!  I was very happy that things were going well but the success was masking underlying issues, and fixing those during the good times was the right thing to do!

The last blog entry I wrote was called Push Yourself … and it opened with the following statement.  Sometimes we need to be reminded of lessons that we learned some time ago … and forgot.

Well the same thing applies to managers and business owners.  Are you complacent?  Do you push to be better?  Do you think that just because things are going well today you can “take a breather”?   If you answered yes, then you are living dangerously.  This is a very competitive world and victory goes to he/she that earns it!

Kevin Dee is CEO of Eagle (a Professional Staffing Company)
Let Eagle find your next Finance and Accounting Professional anywhere in Canada?

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