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Tough times in the US

The star-spangled banner seems to have lost some of its sparkle for South African IT professionals during the past 18 months.
By Laurika Bretherton, ITWeb Chicago-based correspondent
Johannesburg, 09 May 2003

ITWeb spoke to 6 South African IT professionals who moved to the US, asking them pointed questions about their success in the pursuit of the great American dream. Their responses were both candid and varied: job uncertainty, salary cuts and cultural differences were some of the issues weighing on their minds.

No job security

"Job security is an antiquated term," says Richard Banfield, who left his software-developing company to start a coaching and consulting firm. He is now a Boston-based executive coach working with entrepreneurs and senior executives.

He says the US IT market is competitive and saturated with products and services, so companies that differentiate themselves are focused on customer service.

"There`s been many IT casualties with only a few strong players remaining in each vertical section. There is little room for error and the customer base is concerned with spending, so budgets are tight. Project management skills and systems knowledge are what IT people need in the US to stay on top of things," observes Banfield.

His tip to South Africans thinking of moving is "to know why you`re doing it". "If it`s for the money, then it is just as likely you will earn a good salary in SA. The best opportunities in the US are for entrepreneurs who intend starting a new business."

Money is not enough

JP Barnard, a developer for a Boston technical computing software company, says there are a lot more opportunities in the States. "The marketplace, as opposed to life in general, is less constricted in the US. Here effort is applauded, while back in SA, failure is condemned up to the third generation."

Like Banfield, Barnard says money is not a good enough reason to move to the US. "The required adoption and logistical problems regarding family and friends back home is not worth the extra income. In real terms one is not better off, given the price of comparable housing and congestion in the New England region around Boston and New York.

"These guys do not know what life is anymore. They don`t know how to braai and friendship is a superficial concept in this region of the US. You can make lots of money, but living is something quite different," observes Barnard.

"In terms of non-material quality of life, Stellenbosch and Cape Town win hands down. Boston may have more upmarket arts and culture but the place is congested, the houses look like wooden cabins, and there are no mountains within two hours of driving. Life is over-regulated; there are too many mean-looking police around," he adds pointing out that project management, C++ and Java programming are good skills to have.

Upturn ahead?

Life in general, is less constricted in the US. Here effort is applauded, while back in SA, failure is condemned up to the third generation.

JP Barnard, developer, Boston

Chicago-based senior consultant Koos Vermeulen says although the economic slump of the last two years put a damper on opportunities, conditions are still better than when compared to life in SA.

"The kind of work you do does not reflect your status. If you like to do development, for example, you can do it until you retire and don`t feel any pressure to move into a management position just because of your age."

He adds that during the past 18 months many companies have reduced spending, retrenched workers and cut salaries. "A lot of companies also have a hiring freeze in place. Very few bring in offshore consultants. They first look at local talent before bringing in people on H1B visas."

The consulting firm that Vermeulen works for instituted a 10% salary cut across the board. The training budget was also slashed. "Only recently did they start to offer decent training again."

As to job security, Vermeulen says: "I did not feel secure at all. As long as I was billing out at a client it was fine, but as soon as I rolled off a project, I was very concerned. Years of experience or skills set don`t really matter."

He now works on a long-term project that provides better job security and plans to stay in the US for the near future. His advice to South Africans is:

"Make sure you have the right qualifications, skill sets and experience. Go for the big companies, because they are willing to sponsor the H1B visa and green card process. A lot of companies are anticipating an upturn in the market and are starting to recruit people. If you do find an opportunity with a company over here, start with the green card process as soon as possible."

Vermeulen lists the following skills as good to have: "Microsoft development such as Visual Basic and SQL Server, Microsoft .Net, networking and software quality management."

Better opportunities

Herman Nell also lives in the Boston area and believes the current US market is massively oversupplied. "Most of the skilled IT people who lose their jobs could take anywhere from six to 18 months to get another job. The change in the US IT market placed the focus back on cost saving activities and small projects that require limited capital investment."

According to Nell, programming skills are only in demand in order to maintain applications and not to develop new ones.

"Consulting rates," he adds, "have declined by 30% to 40%."

Nell`s previous company cut 30% of its IT staff. Although Nell believes he is in a privileged position, he comments: "As is the case with most jobs in the US, security is at best of times questionable. During difficult economic times no one in the US could feel totally at ease with their job security."

Nell says he will stay in the US because he is doing well and does not believe that similar opportunities would present themselves to him in SA at this stage of his career. He believes that South African IT people who want to move to the US would do well to wait until the market turns unless they have unique skills.

He suggests that those looking for placement in the US need the following skills: "First is the ability to adapt to and manage changes in the job environment. Secondly, you need to be able to identify with the goals, priorities and activities of the business. Thirdly, good project management skills are essential since the majority of tasks in IT are executed within project mode.

"Finally, keeping up with the latest programming languages and applications is very important. Do not cling to old technologies, irrespective of how good you are at them. Unless you`re planning on retiring in the next 24 months, your current skills will most likely not be adequate."

Return on investment

<B>Know why you`re doing it</B>

* Make sure you have the right qualifications, skill set and experience.
* Make sure the company you work for is stable.
* Go for the big companies that are willing to sponsor the H1B visa and green cad process.
* Learn to adapt and mange changes in the job environment.
* Be able to identify with the goals, priorities and activities of the business.
* Keep up to date with the latest programming languages and applications.
* Brush up your project management skills - they are essential.
* Do not cling to old technologies, irrespective of how good you are at them.
* Make sure you have "a lot of money" when you are re-locating.
* Find out if you will be compensated if you lose your job and have to go back.
* Know why you are doing it - if it`s for the money, then it is just as likely you will earn a good salary in SA.

Another Chicagoan, Alex Dinu, says the US market is far more competitive and professional. He adds that since the bubble bust, return on investment (ROI) has become more of a concern.

"Everyone in the IT market has been brought down to earth. This makes the market less appealing and restricts invention since funding is virtually non-existent. Anything you do must prove to make or save the company money, otherwise they will let you go."

His advice is to bring a lot of money when re-locating to the US. "Make sure the company you work for is stable. Find out how they will compensate you if you lose your job and have to go back. Also find out about the green card process in detail."

Dinu plans on staying in the US. "My daughter was born here and I am more comfortable with the education standards, crime rates, social issues and opportunities over here."

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