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All Talent Development Centre posts for Canadian technology contractors relating to the economy.

IT Industry News for May 2017

Kevin Dee By Kevin Dee,
Chairman of the Board at Eagle

This post first appeared on The Eagle Blog on June 5th, 2017
Tech News HeaderThis is my 30,000 foot look at tech events for May 2017. 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.

A Little History of May in previous years …

Five years ago, in May 2012, Facebook went public and there was a fair amount of M&A activity. The largest deal saw SAP’s $4.3 billion acquisition of Ariba with CGI’s $2.8 billion acquisition of Logica PLC of particular interest to those of us here in Canada! EMC continued its pattern of acquisitions with the $430 million purchase of XtremIO: perennial acquirer Oracle paid $300 million for social media marketing firm Vitrue; in the storage space Seagate paid $186 million for a controlling interest in LaCie; Microsoft invested $300 million in a Barnes & Noble subsidiary; and LinkedIn paid $118 million for Slideshare. There was plenty more activity, but with the amounts not published. Twitter bought RestEngine; IBM bought customer analytics company Tealeaf Technology; VMware bought Wanova; and Cisco bought Truvisco.

Yahoo logoIn May 2013, Yahoo purchased Tumblr for $1.1 billion. The $6.9 billion deal to take BMC Software private did not cause the same kind of splash … the power of the brand? Manitoba Tel decided to shed its Allstream division to a holding company for $520 million; McAfee paid $389 million for Finnish security firm Stonesoft; Dell added to its cloud capabilities with the purchase of Estratius; AVG bought PrivacyChoice; and Ottawa based N-Able Technologies became one more Canadian company to be bought by a larger US company, this time Solarwinds for $120 million.

In May 2014, AT&T paid $50 billion for DirectTV and Apple paid $3 billion for Beats. Google continued to invest in its Android strategy this time with a strategy company, Divide, that will bring help breaking into the enterprise. Other acquisitions saw Seagate pay $450 million for some flash capability from Avago (the LSI divisions); GE bought cyber security firm Wurdtech; EMC bought a flash (see the trend) start-up DSSD; Time Warner bought Youtube video network FullScreen; and SAP bought behavioral target marketing company SeeWhy.

HP logoMay 2015 saw some very large deals on the M&A front, with the biggest seeing Charter Communications spend $55 Billion to buy Time Warner Cable and a further $10.4 Billion to buy Bright House Networks. This creates the second largest cable company in the US, just behind Comcast. The “Billion-dollar club” also saw French Telco Altice pay $9.1 Billion for another US cable company Suddenlink Communications. Keeping with the billion dollar deals involving telcos, Verizon paid $4.4 Billion for AOL to bolster its mobile video capabilities. Another Billion dollar deal saw HP unload 70% of its stake in its China server, storage and technology storage unit to Tsinghua Holdings for $2.3 billion. The final billion-dollar deal saw EMC pay $1.2 billion for cloud service provider Virtustream. Apple was out buying a couple of companies in May, snapping up mapping company Coherent Navigation and augmented reality company Metaio. In other deals Avaya bought cloud technology company Esna; and Cisco bought cloud programming interface company Tropo.

DXC logoMay 2016 saw some M&A activity with the largest deal seeing HPE merge its services arm with CSC in a $8.5 billion deal to create arguably the largest IT services company. In another large deal Vista Equity Partners is paying $1.79 billion for customer service and marketing cloud provider Marketo. There were some other big names out shopping in May too. Oracle paid $532 million for software as a service for the utilities vertical, company Opower; Google picked up interactive training platform Synergyse; Infor bought consulting services company Merit Globe AS; and ARM paid $350 million for imaging and embedded systems company Apical. Microsoft ended an unhappy period by divesting its feature phone business to FIH mobile for $350 million, and GoDaddy picked up cloud based phone company FreedomVoice for $43 million. New Signature picked up another Microsoft solution provider, Dot Net Solutions; and Edmonton based F12.Net bought Calgary-based professional services company XCEL.

Which brings us back to the present …

The apple logo and apple with a bite out of itThe most significant purchase in May 2017 was the $1.86 billion sale of CenturyLink’s data centres and colocation business to a consortium led by BC Partners, Medina Capital Advisors and Longview Asset Management. Cybersecurity startup, Hexadite, was bought by Microsoft for $100 million. Goldman Sachs entered the BI space by purchasing a minority stake in Information Builders of New York City. Apple acquired Beddit, a Finnish sleep sensor product, for an undisclosed amount. Finnish cybersecurity firm, F-Secure acquired British security consultants, Digital Assurance also for an undisclosed amount.     

Surprisingly, increasing smartphone sales around the world are not coming from tech giants like Apple and Samsung. Chinese smartphone makers are on the rise and gaining significant market share at home and in other densely populated countries.

That is it for my synopsis of  technologynews over the last month, compared to the same month in previous years.  I’ll be back in about a month’s time, until then … walk fast and smile!

IT Industry News for February 2017

Kevin Dee By Kevin Dee,
Chairman of the Board at Eagle

This post first appeared on The Eagle Blog on March 8th, 2017

Tech News HeaderThis is my 30,000 foot look at events in the ICT industry for February 2017. 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.

A Little History of previous year’s Februarys …

Five years ago, February 2012 was not a blockbuster month for M&A, but there was some interesting activity.  The biggest deal of the month saw Oracle pay $1.9 billion for talent management company Taleo.  Siemens Canada paid $440 million for networking equipment company Rugged.com.  IBM bought BYOD company Worklight; Dell bought backup and recovery company AppAssure; Apple bought mobile search company Chomp; dell logoand LM Ericsson bought Ottawa based BelAir Networks.   Four years ago in February 2013 Dell went private in a $24.4 billion deal that included a $2 billion investment by Microsoft.  Oracle paid $1.7 billion for networking company Acme Packet Inc.; Rackspace bought big data company ObjectRocket; Telus was busy with two acquisitions, electronic medical records division of the Canadian Medical Association and digital forensics company Digital Wyzdom; HP also sold the Palm operating system to LG for their smart TVs.  February 2014 was busy in M&A. Facebook make a big move with the $16 billion Oracle logo a large software company originally noted for its databaseacquisition of Whatsapp.  Comcast made a $45 billion play for Time Warner Cable and regulatory approval or otherwise is imminent; Oracle paid a reputed $400 million for data management platform company Bluekai; LinkedIn paid $120 million for online job search company Bright; and Klout was bought for about $100 million by Lithium Technologies.  Google made a couple of acquisitions, online fraud company Spider.io and secure logon company Slicklogin.  IBM bought database as a service company Cloudant; and Monster bought a couple of companies, social profile company Talentbin and job aggregation and distribution technology company Gozaic. Finally, Microsoft announced Steve Balmer’s retirement and appointed a new CEO, Satya Nadella.  February 2015 saw some interesting activity.  The $6.3 billion merger of Staples and Office Depot and the $1.6 Billion purchase of Orbitz by Expedia are two examples of sectors experiencing massive consolidation.  There was a big buy in the communications and IT space with Harris paying Microsoft logo$4,75 billion for Excelis to establish a 23,000 person company.  There was a big data center play with UK based Telecity Group paying $2.2 billion for Interxion Holdings.  Microsoft made a couple of acquisitions, paying $200 million for pen-tech maker N-Trig and $100 million for mobile calendar company Sunrise.  Samsung bought a mobile payment company (competing with Apple pay), LoopPay.  Also out buying was Twitter which picked up Niche, a network of social media creators.  There were a number of interesting deals in Asia, including Sapdeal buying luxury fashion estore Exclusively; Foodpanda made six acquisitions of online meal delivery services to establish itself as a powerhouse in that space.  Showing some forethought Australian job board OneShift has bought Adage, which is a job board serving people over 45.  Last year in February 2016 the biggest deal saw HNA Group of China pay $6 billion for Ingram Micro.  Two other billion dollar deals Cisco logoincluded Cisco paying $1.4 billion for IoT company, Jasper Technologies and a consortium of Chinese internet firms making a $1.2 billion bid for Opera. Microsoft was busy with a couple of acquisitions, Xamarin a cross platform mobile application development company, and Swiftkey which produces predictive keyboard technology.  Another busy company was Alibaba Group which was investing in a bunch of companies, including a $100 million investment in Groupon, and smaller investments in microblogging site Weibo; software company Momo; augmented reality startup Magic Leap; Chinese retail chain Suning; and Singapore telco SingPost.  Other companies of note out buying included IBM who bought digital agency Aperto and Blackberry acquired cybersecurity company Encription.

Which brings us back to the present …

The apple logo and apple with a bite out of itFebruary 2017 saw very little M&A action.  Nokia paid $371 million for Finnish telecom software company Comptel, as it reinvents itself, and Apple picked up an AI startup company RealFace.    Another company in the news, but for the wrong reasons was Samsung which is in the middle of a significant bribery scandal.

On the economic front there were a lot of positive indicators out of the US, including adding another 246,000 jobs.  Canada also added 48,000 jobs in January which followed a good December in job creation.  Around the world, the UK is starting to see some labour impacts from the Brexit decision as EU nationals are not applying for jobs they used to do.  Brazil reached a record high in unemployment, in India hiring activity declined and in China there is expected to be a boom in hiring.

Perhaps more interesting this month than the M&A activity, or lack thereof, were some other tidbits of news.

The Irish government have an Action Plan for Jobs that is ahead of plan as of 2016 and is looking to create 200,000 net new jobs by 2020.  Maybe Canada could take a look at an interesting program like this!

An Ipsos survey suggests that Canadians are spending more time on mobile apps than ever, which might explain why everyone you see walking along the street has their face buried in their phone!

Another survey suggests that within the last year 60% of small businesses were the victims of cyberattack!

Finally, another study suggests that global gender diversity is moving, albeit slowly, and at this rate it will take another 20 years to hit parity!

That is it for my monthly look at what was happening in the technology space over the last month, compared to the same month in previous years.  I’ll be back in about a month’s time, until then … walk fast and smile!

US Immigration Policy May Help Canada’s Tech Sector

David O'Brien By David O’Brien,
Vice President, East Region & Government Services at Eagle

Canadian Maple LeafRecent events both South of the border and across Europe have brought immigration to the front pages as a hot button issue. Undoubtedly it has been a very polarizing social and often disturbing humanitarian issue. But what can we make of the economic and business ramifications for Canada in these changing times?

There is most definitely a labour problem in the entire Canadian economy and one that by all measure is about to get worse. The demographic headwind that we face is a potentially lethal combination of boomers retiring over the next 15 years and an overall aging population not supported by growing birth rates. Economic growth in Canada is inextricably linked to both labour growth and productivity, both of which can be addressed through strategic immigration.

This challenging future that could see more people leaving the workforce than entering in Canada and the structural problems that would entail can be alleviated to some degree by immigration. Canada is not alone in this; in fact, most major economies in the world are facing these kinds of issues. For example, Japan’s economy has stalled as the combination of a low birth rate and very low immigration intake resulted in one of the poorest GDP growth rates of the world’s largest economies.

Canada historically has and will likely always be a leader in helping the world’s most downtrodden and desperate refugees and for that most Canadians are proud. Additionally, how do we also compete to attract in our immigration policy the marketable skills, education and experience that will help boost an economy? These so called Economic immigrants have made up a larger proportion of the immigrant intake for the last decade or so in Canada and will likely remain a focus of immigration policy.

US Immigration Policy May Help Canada's Tech SectorToday, though, with changes in the US landscape as a result of the election of Donald Trump has perhaps led to a very real opportunity for Canada, especially in the Tech sector. Many Silicon Valley based Tech companies have been vocal in their very real concern that the change in US Immigration policy will be very detrimental to them and what they already contend has been a tough struggle for top talent. Foreign workers have been a crucial piece of the Silicon Valley tech skills gap puzzle and with the changes in policy, and perhaps even the heated atmosphere in the US as a result, many skilled tech workers will look to Canada as an option. There are mechanisms in place already such as Canada’s Global Skills Strategy that allow companies to quickly acquire the skills they need on an initial short term basis.

It has always been very tough for Canada’s high tech companies to compete with the allure and frankly other worldly perks and compensation of Silicon Valley but these days perhaps they now have a leg up.

Staffing & Recruitment Industry South of the Border

Morley Surcon By Morley Surcon,
Vice-President, Western Canada at Eagle

Staffing Industry Analysts LogoLast week I attended the Staffing Industry Analyst‘s conference that was held in San Diego. In addition to taking a break from the cold Canadian winter, it provided the opportunity to get a sense of the current state of the staffing market in the USA.  This is important as the American market tends to lead the Canadian market in trends and innovation. It provides a glimpse into what may be coming for us in Canada.

Before I share some of my observations, let me explain what the Staffing Industry Analysts organization is and does.  The SIA describes themselves as:

Staffing Industry Analysts (SIA) is the global advisor on staffing and workforce solutions. Our proprietary research covers all categories of employed and non-employed work including temporary staffing, independent contracting and other types of contingent labor. SIA’s independent and objective analysis provides insights into the services and suppliers operating in the workforce solutions ecosystem, including staffing firms, managed service providers, recruitment process outsourcers, payrolling/compliance firms and talent acquisition technology specialists such as vendor management systems, online staffing platforms, crowdsourcing and online work services.

This organization is really connected. Their research is significant and the huge sample-size ensures accuracy.  Eagle is a member and we follow their publications religiously.  Over many years, their outlook has consistently been proven correct.

With this said, I’ll share a sample of interesting things that I learned… some of which may confirm what you already know/believe while some others may surprise you as it did me:

  • There is a world-wide shift in employment from permanent employees to contract/temporary labour.  This is both being driven by the people themselves as their preference and by employers recognizing the value of employing contingent workers.
  • Contingent workers grew from 12% of the working population in 2009 to 22% in 2016 with 44 million American workers now doing contingency work.
  • The adoption of MSP (Master Services Providers) has plateaued in the USA.  Although this offering is still growing globally, it is no longer the case in the US market.
  • Moreover, I was surprised to find that there was a marked move from outsourced, off-shored service solutions, back to in-house-managed solutions; companies are repatriating their business and technical teams to manage their own projects and operations.
  • The staffing industry in the USA is also getting crowded with nontraditional service providers such as online staffing solutions, cloud-based solutions with AI (artificial intelligence) and Robotic solutions coming on strongly.  This is resulting in a more complex and potentially confusing ecosystem.
  • Niche/specialized contingent labour providers are growing their market share at the expense of the generalists.
  • Globalization of staffing companies appears not to be growing as quickly as it had previously.  Through technology, globalization is in the reach of most companies big or small, but “buy-local” political philosophies and increasingly complex legal structure, laws and regulations are curbing the ease of expanding to new markets.

Although this is a very short list of information from the conference, you can find many more reports and statistics at SIA’s website:  http://www2.staffingindustry.com/row/Research/Research-Topics-Reports.

In summary, the staffing industry in the USA is very active and the outlook is quite positive. Technologies are coming out that will change the way recruitment agencies and the hiring companies source candidates and appears to be playing the role of disrupter for MSP’s going forward.  The overarching trend is for companies to bring their own projects back in-house after having tried off-shore or outsourced solutions.

IT Industry News for January 2017

Kevin Dee By Kevin Dee,
Chairman of the Board at Eagle

This post first appeared on The Eagle Blog on February 7th, 2017

Tech News HeaderThis is my 30,000 foot look at events in the ICT industry for January 2017. 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.

A Little History of previous year’s Januarys …

Five years ago, in January 2012 things were very quiet in M&A – former tech giant JDSU was back on the acquisition trail, even if just to pick up a small Vancouver based company, Dyaptive Systems. Symantec paid $115 million for LiveOffice to help with its storage capabilities, Google bought a bunch more IBM patents, and Xerox picked up Laser Networks in the managed printing space. Rim (now Blackberry) also announced a change in leadership. Three years ago, in January 2013 Cisco bought mobile network software company Intucell for $475 million and sold its Linksys division to Belkin. The biggest dollar value deal was AT&T’s purchase of some of Verison Wireless’s airwaves for $1.9 Billion. Other deals saw NCR buy video software ASTM company uGenius Technology; Canon Canada acquired long-time partner and document management company Oce Canada; NetSuite bought retail management systems company Retail Anywhere; and AVI-SPL bought Duocom-Duologik. January 2014 was an interesting month with a few big M&A deals. Google was an especially busy player, selling its Motorola Mobility handset unit to Lenovo for $2.9 billion but paying $3.2 billion for Nest Labs and the company also bought Bitspin. The other big deal saw VMware pay $1.17 billion for mobile device management company AirWatch. Other big names on the acquisition trail included Oracle who bought cloud based service delivery company Corente; Microsoft paid a reputed $100 million for cloud based service company (seems to be a theme) Parature; Ricoh purchased IT service company Mindshift from BestBuy; and Hootsuite bought analytics company Yahoo logouberVu. In January 2015, the biggest deal was Hutchison offering more than $14 billion for O2. Other big dollar news saw Yahoo looking like it might be remaking itself, spinning off its $40 Billion stake in Alibaba to become smaller, leaner and either buy or be bought! The final M&A activity involving a “B” was Telco equipment company Commscope offering $3 billion for TE Connectivities network business. There were also a number of very well-known companies out buying, and in no particular order … Amazon paid something like $300 million (approximate) for chip designer Annapurna Labs; Expedia bought its online travel competitor Travelocity for $200 million; Samsung paid $100 million for Brazil’s largest print company Simpress; Google paid about $100 million for mobile payments company Softcard; Facebook bought Wit.ai a company that has a Siri like Dropbox logosolution that can be embedded in other products; Dropbox bought CloudOn a document editing and productivity tools company; Twitter paid somewhere between $30 million and $40 million for Zipdial, an Indian company that does some funky marketing thing with phone hang ups; and finally Microsoft made two acquisitions, startup text analytics company Equivo and in a departure from its history it bought open software company Revolution Analytics. There were no huge deals in January 2016, but there was plenty of activity with some of the household names out shopping. IBM bought video service provider Ustream; Microsoft bought game form learning tool MinecraftEdu; Apple bought “emotion recognition” company Emotient; and Oracle bought media web tracking firm AddThis. Toshiba bought an ERP solutions company Ignify, and a number of smaller deals included Juniper Networks buying BTISystems Inc.; FireEye bought iSight partners; Acceo Solutions bought Groupe Techna and SmartPrint bought LaserCorp’s Toronto based managed print services business.

Which brings us back to the present…

Cisco logoIn January 2017 the multi-billion-dollar deal of the month was Cisco’s purchase of app performance management company, AppDynamics for $3.7 billion. HP Enterprise purchased data center hardware provider, SimpliVity for $650 million. Microsoft acquired Montreal-based deep learning start-up Maluuba for an undisclosed sum. Google has announced plans to purchase Twitter’s mobile developer platform Fabric. Trello, the startup behind a leading task-management app has been purchased by Atlassian for $425 million. CRM giant, Salesforce bought Unity&Variety to enhance its productivity app service Quip Managed Service Provider of data and database administration, Datavail, acquired Canadian IT channel leader Navantis.

IBM logoSome non-M&A news in January included IBM announcing it broke the US record for number of patents granted in a single year – 8,088 to be exact. Avaya Inc. announced it filed for Chapter 11 bankruptcy protection as a result of accumulating debt from their major acquisitions in the last ten years. According to a report released by Gartner Inc. 2016 saw a decrease in the shipment of PCs, the lowest it has been since 2007.

That’s my look at the tech news for January 2017. Until next month, walk fast and smile!

Discover Vancouver and Its Job Opportunities

Cameron McCallum By Cameron McCallum,
Regional Vice President at Eagle

The Insiders’ Guide to Moving to Vancouver… Plus a Tip to Find Work When You Get Here!

The truth about the Canadian economy is that while some regions may be booming in job opportunities, others continue to struggle. Even in those cities where careers thrive for one trade or skillset, an expert in another field may not be getting the same luck. If you’re considering a change in venue to find a new career opportunity, have you considered moving to Vancouver?

Is Vancouver the Right Place for You?

Downtown Vancouver Sunset
Downtown Vancouver Sunset” by Magnus Larsson is licensed under CC BY-SA 2.0

We all have our perspectives on what a city must be like, even when we’ve never set foot in it. Vancouver is one of those cities that evokes a lot of different feelings amongst Canadians. It gets its fair share of press, both negative and positive, which feeds into the stereotypes we all have. For example:

  • We’ve all heard of the “crazy” Vancouver housing market — it exists, but both the City and Province are taking steps to make renting in Vancouver or purchasing a house or condo more affordable.
  • The rain — there is a lot in the winter, but winter is soooo short!
  • The beauty of the city — oceans, mountains, parks… what’s not to like?

The truth is, if you want to live in a city with access to an endless selection of outdoor activities, a thriving arts and culture scene, more international restaurants featuring ethnic and sea food than you will find anywhere, great post-secondary schools, and an airport that gives you access to the entire Pacific Rim, Vancouver is it!

The Job Market and Opportunities in Vancouver

Vancouver has a thriving economy. Already considered one of the most livable cities in the world, businesses are flocking to the city in record numbers and that is driving a lot of opportunity. Companies like Google, AOL, SAP, Amazon to name a few, have decided that Vancouver is a great place to put down roots. Access to Engineering grads and a lifestyle which attracts potential employees from all over the globe has made the city increasingly attractive. And with this “boom” the spillover effect is that other areas of the economy have to respond to the need for increased services and infrastructure. And that leads to more and greater job opportunities, which is where we are at today.

An Inside Scoop on Project Management Jobs in Vancouver!

Eagle is one of Vancouver’s leading employment agencies and we offer a number of IT job opportunities, both contract and full-time. Today, we’re fortunate to be partnering with BC Clinical and Support Services Society (BCCSS) to assist them in hiring a large number of permanent employees with IT Project Management expertise, including Portfolio Managers, Infrastructure Project Managers and Project Manager Team Leads.

Not only is this one of the largest initiatives that I’ve ever been part of, but it has to be one of the largest in Vancouver’s history! And it is not just the volume of recruits needed. The opportunity to work in the health sector, delivering services to mission critical staff and systems in a challenging and dynamic environment, is a rare opportunity that does not come along often. Fantastic Benefits, Pension and other perks all add to the attractiveness of these roles.

So if you’ve been thinking about moving to Vancouver or always had a question in the back of your mind as to what would it be like to live there. Stop thinking about it and act… now is the time.   Feel free to leave your questions in the comments section below.

Quarterly Job Market Update for Q4 2016

Kevin Dee By Kevin Dee,
Chairman of the Board at Eagle

This post first appeared on The Eagle Blog on January 20th, 2017

Canadian Job MarketGeneral Observations: 

From a jobs perspective 2016 finished much as it started, most markets were okay but not great and the oil and gas space was “hurting”.  The oil patch has been hurt not only by the low price of a barrel, but also by the political uncertainty introduced by both provincial and Federal governments that crushes any investment possibilities from private enterprises.  There has been some positive momentum associated with the upcoming Trump presidency, so we shall see how that plays out in the coming months and years.  The Canadian dollar continues to hover around the 75c US mark which makes it more expensive for imports, and Canada imports more than it exports.

The unemployment rate at the end of the year was 6.9%, a slight improvement over the 7% at the end of September, and even better than the 7.1% of this time last year.  During the previous 12 months Canada added 214,000 jobs although the majority of these were part time jobs.

TSXThe stock market continues to be relatively volatile, but perhaps that is the new norm.  For the purposes of this report I focus on the TSX and it has enjoyed a reasonable period of growth over the last year, ending 2016 at around 15,300 points which was currently at around 15,000 points which was more than 200 points better than it ended last year.

picture of an oil rigAs already mentioned the oil patch continues to take a pounding and we don’t anticipate much positive change before 2018.  With oil settling at around $50 a barrel we are not likely to see the start of any major projects although there is some optimism that most of the “bleeding” is done.  Alberta will not attract much private sector investment in the current political climate, particularly when almost any other jurisdiction outside of Canada is more business friendly.

Canadian dollar the LoonieThe Canadian dollar finished 2016 at around 75c US, as opposed to the 70C US it was a year ago.  A weaker dollar is good for the oil patch because they sell in US dollars and most costs are in Canadian dollars.  It is also helpful to our manufacturing sector, because finished goods exported with a weak dollar mean a better profit margin.  However importing raw materials becomes more expensive and generally Canada imports more than it exports so overall a weak Canadian dollar is not good for Canada.

The banking sector is one of the bigger employers in Canada, and the Canadian banks have fared well this year with their stock prices riding high.  They are also prudent money managers and have been very careful with their hiring.  They take full advantage of technology which can mean a reduction is client facing staff as e-banking continues to grow and  even their technology projects have seen very careful hiring this year,

The telecommunications companies are other big employers in Canada and are also very cost conscious.  While they demand the best talent in order to compete, they too, are also careful about keeping employment costs under control, particularly as they are also acquisitive, which can mean a big focus on integration of acquired companies.  Some of the drivers of demand here include the highly competitive nature of the business, investment in infrastructure, technological innovation and a need to plan for a retiring “Boomer” workforce.

The US economy continues to add jobs, but at a reduced rate of about 150,000 per month.  The demand for skills in the US will lure talent from Canada which is good for the individuals but not so good for Canada in the long term.  What has not happened, and is different from previous economic times, is that Canada’s economy has not improved along with US economy, which is one of the indicators of our “new normal” environment.

ConstructionThe construction industry seems to be forever busy, to which anyone trying to get work done will attest.  Despite the slowdown in the big jobs like the oil sands, there appears to be a constant demand caused by infrastructure upgrades in many of our cities and we have the promise of more such work funded by our growing national debt (was that my out loud voice?).

Parliament building in OttawaThe three levels of government in Canada are big employers.  Municipal, provincial and Federal governments employ a lot of people and with the current Federal government it was expected their ranks would grow.  There has been some growth in the Federal payroll, about 40,000 in 2016 but it was expected to be more.  All of these governments are dealing with the issue of a fast retiring upper echelon.  The pensions are so lucrative that large numbers of civil servants are eligible for, and invariably take, retirement at a very early age.  This will create opportunity for new jobs, but will also result in a significant brain drain from our government.

The Canadian Staffing Index is an indicator of the strength of the largest provider of talent in any economy (the staffing industry) and an excellent barometer of the health of Canada’s economy. The reading at the end of 2016 was 96, as opposed to 98 a year earlier.  While that appears to be a drop, it is in effect negligible because there were less work days in December 2016 than a year earlier.

Eagle LogoHere at Eagle we experienced a 10% drop in demand from our clients in 2016 as opposed to 2015.  We also experienced a 4% increase in people looking for work.  This really tells the tale of the Canadian economy in 2016, there are less jobs and more people looking.   Eagle’s world is primarily in the technology space, and while we expect things to pick up in 2017 we expect to see skills shortages start to add to Canada’s economic problems.

 More Specifically:

cn tower The GTA is Eagle’s busiest region, representing about 60% of our business.  Not surprising given its boast as the 4th largest city in North America, containing more than 50% of Canadian head offices and with a population of approximately six (6) million.  This market has remained one of the busier markets in Canada, yet has not been as buoyant as previous years, with banks, telcos and provincial government all just a little slower with their hiring.   We anticipate things to pick up in 2017 and demand for skilled resources to increase substantially.

Eagle’s Eastern Canada region covers Ottawa, Montreal & the “Maritimes”.  While there is a better mood amongst the Federal civil service under the Trudeau government, I can’t say that I share their optimism given his focus on anything but job creation.  We do expect a decent level of demand in the Federal government in 2017, with necessary projects requiring expertise and the steady flow (certainly more than a drip) of talent retiring.  Quebec is enjoying its lowest unemployment rate in some time, and Montreal remains the hub of that activity.  We anticipate that to continue in 2017.  The Maritime Provinces continue to struggle to create employment and we don’t expect much change there.

The Saddledome in CalgaryWestern Canada is of course comprised of the oil patch in Alberta and the rest.  Some provinces have fared better than others, with certainly Alberta taking the brunt of the hit because of its resource based employment.  BC was actually the fastest growing province in Canada in 2016, and Saskatchewan has fared better than other provinces with a business friendly government.  The outlook for Alberta in 2017 is better, but not exciting.  The other provinces should see a reasonable increase in jobs.

The Hot Client Demand.

At Eagle our focus in on professional staffing and the people in demand from our clients have been fairly consistent for some time.  Program Managers, Project Managers and Business Analysts always seem to be in demand. It might just be our focus, but Change Management and Organizational Excellence resources are in relatively high demand too. Big data, analytics, CRM, web (portal and self-serve) and mobile expertise (especially developers) are specializations that we are seeing more and more. On the Finance and Accounting side, we see a consistent need for Financial Analysts, Accountants with designations and public accounting experience plus Controllers as a fairly consistent talent request. Expertise in the Capital markets, both technical and functional, tends to be a constant ask in the GTA.  Technology experts with functional expertise in Health Care is another skill set that also sees plenty of demand.  This demand fluctuates based on geography and industry sectors, so we advise candidates to watch our website and apply for the roles for which they are best suited.

 Summary:

The last year was a tough one in the Canadian economy and we will continue to face challenges into 2017, with carbon taxes, a struggling oil patch, a resurgent but protectionist US economy under Donald Trump and a Federal government more interested in the environment, foreign aid, being recognised on the world stage and anything other than creating a business friendly atmosphere in Canada.

On the plus side for job seekers, there will be growth opportunities afforded by a growing number of retirees requiring replacement, and some sectors that will grow … some which we believe will be the telecommunications, technology, construction, government and the financial sector.

That was my look at the Canadian job market for the final quarter in 2016 and some of its influences.

IT Industry News for December 2016

Kevin Dee By Kevin Dee,
Chairman of the Board at Eagle

This post first appeared on The Eagle Blog on January 6th, 2017

Tech News HeaderThis is my 30,000 foot look at events in the ICT industry for December 2016. 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.

A Little History of previous year’s Decembers …

Five years ago, in December 2011 Ottawa’s March Networks was snapped up by Infinova Canada for $90 million, and Toronto based Rypple was acquired by Salesforce.com!  The BIG deal was SAP’s $3.4 billion purchase of SuccessFactors, who had also announced they were buying Jobs2Web for $110 milion.  It was IBM that was the most active acquirer of the month, paying $440 million for DemandTec, also picking up Emptoris in the procurement world and Irish company Curam Software in the government sector. Oracle logo a large software company originally noted for its databaseFour years ago, in December 2012 there was a fair amount of M&A activity with Oracle making two acquisitions, marketing automation company Eloqua ($871 million) and Dataraker which provides analytics for utilities companies.  The big deal of the month saw Sprint pay $2.2 Billion to take full control of cellular competitor Clearwire.   Montreal based Cogeco paid $635 million for Peer 1 Networks and NCR paid $635 million for retail software and services company Retalix.  In the BYOD space Citrix bought mobile device management company Zenprise for $355 million.  Finally, Redknee added 1200 employees and 130 new clients through the purchase of Nokia Siemens Business Support Network. December 2013 was a slow month, however Oracle pulled off a $1.5 billion buy of marketing software company Responsys; Akamai paid $370 million for cloud-based IBM logosecurity solutions provider Prolexic; JDS Uniphase paid $200 million for enterprise performance management company Network Instruments; IBM bought a “big data” file compression company Aspera and Hitachi expended its solutions capability with the purchase of Calgary based Ideaca.  In other company news Target, although not an IT company, had a major security breach involving details of 40 million debit and credit cards.  December 2014 was not such a slow news month, with the political and technical ramifications of “the Sony hack” causing uproar, some very positive economic indicators out of the US and some big names making acquisitions, albeit not huge deals.  Microsoft made two Microsoft logoacquisitions, the $200 million purchase of mobile email app startup Acompli and mobile development company HockeyApp (which has nothing to do with hockey).  SAP bought travel and expense management company Concur; Intel bought a Montreal based identity management company PasswordBox; Oracle bought digital marketing company Datalogix; Teradata bought data archiving company Rainstor; and MongoDB bought high-scale storage engine company WiredTiger. December 2015 was not a busy M&A month but there was some interesting activity.  The big deal saw Canadian telco Shaw make a big play into the cellular space with its proposed acquisition of Wind for $1.6 billion.  Meanwhile Rogers was also out shopping and growing its Maritimes presence through the acquisition of Internetworking Atlantic Inc.  Other deals in December were not large but did feature some of the big players.  Oracle bought Stackhouse a cloud company with a specialization in “containers”; IBM boosted its video in the cloud capabilities with the purchase of Clearleap; and Microsoft picked up a mobile communications company, Talko.  Other deals saw Ingram Micro buy the Odin Service Automation business from Parallels and in the storage world Carbonite bought Evault from Seagate.

Which brings us back to the present …

December 2016 saw Adecco sell its majority stake in Beeline VMS to GTRC, a private equity firm, for $100 million in cash plus a $30 million note; CRN solution provider SS&C purchased asset service firm Conifer for $88.5 million; solution provider QRX Technology Group acquired IT equipment provider Kerr Norton at the beginning of the month; networking solution provider, Juniper Networks acquired cloud operations management provider AppFormix; Uber bought start-up Geometric Intelligence Inc.; and Shopify acquired Tiny Hearts, a Toronto-based mobile product development studio.

In other news, Yahoo disclosed that one billion accounts were hacked in 2013 making it Yahoo logothe largest data breach recorded in history. To safeguard against hacking attempts on your devices, Check Point Software advises users to make sure they download the latest versions of software as they have discovered new malware that targets devices running outdated software. Cyber attacks and security breaches are also a major concern for IT and business professionals where, according to Symantec, 30% of business surveyed have experienced a hack over the last two years.   GoPro also announced layoffs of up to 15% of its workforce and Amazon delivered its first package by drone!

That’s my look at the tech news for December 2016.  Until next month, walk fast and smile!

IT Industry News for November 2016

Kevin Dee By Kevin Dee,
Chairman of the Board at Eagle

This post first appeared on The Eagle Blog on December 7th, 2016

A Little History of previous year’s Novembers

Tech News HeaderThis is my 30,000 foot look at events in the ICT industry for November 2016. 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.

Five years ago, in November 2011, Mosaid was sold to Sterling Partners for $590 million, ending a WiLan hostile takeover attempt. Japanese company Rakuten paid $315 million for e-book company Kobo; Huawei technologies bought Symantec out of a storage and security joint venture to the tune of $530 million; Yahoo paid $270 million for online advertising company Interclick; and Best Buy paid $167 million for internet technology company Mindshift. In November 2012, Cisco made two significant “buys”: cloud infrastructure company Meraki ($1.2B) and cloud datacentre and software company Cloupia ($125M); Dell bought software tools company Gale Technologies; NCR bought retail software company Retalix ($650M); Cray bought software company Appro ($25M); Sprint Nextel bought a chunk of US Cellular ($480M); and Toronto-based NexJ bought Broadstreet for $8.2 million.  Three years ago, in November 2013, Opentext paid $1.1 billion for cloud-based integration services company GXS Group and another Canadian deal saw Mitel buy Aastra for close to $400 million. Other deals included eBay’s $800 million purchase of global payments company Braintree; Apple’s $370 million purchase of 3D sensor company PrimeSense; and Akamai’s purchase of Velocius Networks. November 2014 was an exceptionally quiet month on the M&A front with the largest deal being the merger of two semiconductor companies, Cypress Semiconductor and Spansion, to form a $4 billion company; private equity company Carlyle Group paid $700 million for investment bank technology company Dealogic and Yahoo shelled out $640 million for video advertising company BrightRoll. Last year, November 2015 saw a number of smaller M&A deals, but not much in the way of mega-deals. The only billion-dollar deal saw Expedia pay $3.9 billion for HomeAway as a vehicle to better compete with Airbnb. Zayo Holding Group became the first foreign company to own a Canadian telco after paying $465 million for Allstream. Other, smaller deals saw Apple buy Faceshift, a motion capture company whose technology was used in the latest Star Wars movie; and Lightspeed POS bought SEOshop, increasing its size as a competitor to Shopify. Other deals saw Ingram Micro grow its Brazilian presence with the purchase of ACAO; PCM bought Edmonton-based services firm Acrodex; data centre company CentriLogic bought infrastructure company Advanced Knowledge Networks; solution provider Scalar Systems bought another Toronto company, professional services firm Eosensa; and Washington-based New Signature bought Toronto-based Microsoft Partner, Imason.

Which brings us back to the present

November 2016 saw some M&A activity, although it was not too busy. The big deal of the month saw Broadcom acquire Brocade Communication Systems in an all-cash transaction of $5.9 billion; Adobe purchased multi-channel programmatic video platform TubeMogul for $540 million; IT services and outsourcing provider Wipro Limited will acquire IT cloud consulting firm Appirio for $500 million; Oracle Corp. has announced its plans to acquire DNS solution provider, Dyn Inc.; SoftwareOne acquired and integrated House of Lync; and Avnet completed an acquisition of Hackster.  In other news, hackers caused some problems for Casino Rama Resort, claiming to have both employee and client information going back a number of years; also AdultFriendFinder exposed 340 million users’ information. A Harvey Nash Technology Survey suggests 94% of technology professionals across the world believe a significant part of their job will be automated within ten years, rendering their current skills redundant.

The economic indicators in the US were generally favourable and jobs numbers were quite positive. Canada’s economy continues the same tepid trend we have seen for quite some time. Sometimes up a little, sometimes down a little, with unemployment hovering around the 7% mark.

That’s what I saw affecting the tech industry for November 2016.  Until next month Walk Fast and Smile!

Liar, Liar…

Morley Surcon By Morley Surcon,
Vice-President, Western Canada at Eagle

Liar Liar

Shocking news — people lie!

There are many, many sources on the web showing how prodigiously people fib on their resumes and social profiles.  One such article suggests that over half of resumes and job applications contain falsehoods.  Misrepresentations can range from job titles and dates of employment to out-right lying about where one has worked and the education that they have… and everything in between.

In a slower economy, where there are more applicants than jobs, staffing agencies have witnessed a greater “stretching of the truth” by some independent contractors.  For example, something that our company has been calling “resume blurring” becomes much more common.  This is less of an outright lie, but more of a stretching of the truth.  Resume blurring comes into play when people re-write their resumes to broaden the types of roles for which they might be a fit.  For example, an IT contractor who has been a Project Manager might now have a resume that appears that they’ve got a lot more Business Analysis experience than they really do, or vice versa.  As the two roles work so closely hand-in-hand, it is often difficult for clients and employers to weed out the candidates that kind of know the job versus the ones that have actually been doing the job and are experts at it.

Other times the deceptions are even more blatant.  We have seen instances where contractors actually “buy” resumes and other people take phone interviews for them to win them the job.  We’ve even had someone complete a skype interview for another person!  (That’s a harder one to pull off)  Regardless of what the falsifications are, it comes down to the fact that there needs to be a much deeper level of due diligence completed by recruiters.  Honest contractors deserve a fair shake and the only way this is going to happen is through deeper background and reference vetting.

Again, when the economy offers fewer jobs than there are qualified applicants, companies often feel that they don’t need the services of employment agencies as they can gather more than enough resumes on their own.  But given the propensity of some people to embellish or outright lie on resumes/applications, this is the time when they really need a good staffing agency partner the most.  At Eagle, over our 20 years in business, we have come to know a large percentage of the independent contractors in the market. We’ve tracked their careers and we have relationships with many that span years.  We know these technology professionals, we know what they do and have done, we know that they are the “real deal” and we share this information with our clients.  And for contractors that are new to us, we complete a series of interviews, background vetting and reference checks before sharing their information with our clients; in this way, we get to know them and ensure they are what they claim to be.

For the reasons listed in the paragraph above, honest and professional contractors should make it a point to build strong relationships with their recruiter partners as we can be the voice of reason helping you to compete with the desperate people (or outright charlatans) in the market.

Have you witnessed any new or innovative ways that some people try to fool their way into jobs?  I encourage you to share your stories below!