Speculation with the crisis in the IT sector

Is IT the crisis in speculation? We present an interesting discussion from social networks.

Vladimir wrote:

As I expected with the situation, there is currently speculation in different ways by companies (I refer to the IT sector here).

The former, apparently with poor management, has since started layoffs and/or pay cuts. (I have already discussed the topic of strong and weak management).

The second, the management of the “tricky two-legged brawl” to profit from the moment, declared difficult times, thus reducing wages.

In the third, their management seems to think strategically, ie. not only did they not release or reduce wages, but they even increased the demand for people. The idea is obviously to attract freedmen.

All this is triggered by the word “crisis” without really being felt in the sector. It’s not a restaurant business after all.

There is nothing to pay attention to these thirds, they are obviously capable enough.

But the former and the latter, apparently blinded by profit and overconfidence, need prompting.
I will advise them to look at whether there is an accidental increase in job search ads, as well as last month’s telework ads.
Just for information, telework ads previously were 7-8 listings per month. Now, look at the wheel yourself. Per day!
Keep thinking that your specialists are stupid and will forgive such performances. It will be interesting.

Answer by George:

You may forget the “budget” factor and its related factors – revenue, cash flow, etc.
How better to reduce the company’s revenue and lack of subcutaneous fat “strategically”. Do not cut anyone, and go bankrupt after 4 months, with the corresponding consequences – bankruptcy, non-payment of the latest salaries, non-payment of drawn loans, etc.?

Liam wrote:

As an employee, it is very telling to me that the company has no reserves and that it spends month by month. If such people release me and then seek me, I would never come back. Except maybe with a prepayment of one or two years.

George replied:

just because of the budget the situation is weird! Budgets are not month by month, but per project. A serious project is several months.
As I mentioned, it’s all about management – If they cut your pay, does it mean that you can only pay your utility bills partially? No! You will optimize costs. This obviously makes you a better manager than those who, before experiencing a real problem, are not trying to optimize but are quick to cut.

Christopher joined the conversation:

There are also 4 types of management – they have no company, they wait for a salary all their life, they have no employees, but they are full of knowledge how to run a business, how to hire / fire people, they know everything about the world of finance, politics and economy. The main fields of expression for these managers are social networks, forums and article comments. However, all of the first 3 management groups are extremely grateful that this 4th management group exists.

Vladimir replied:

This type of management scares anyone who wants things to go dark. Just like the 4th power – the media that prevents power from derailing.
In principle, this 4th type of management speaks based on its experience (on its own back) with both cadre and non-cadre management. Powerful and not able. Knowledgeable and ignorant management. Even so. wooden philosophers. The struggle for managers is great.
But all of them are less dangerous than a lubricant employee. Which any goodwill received by management, as a result of favors, is used to build the delusion of being part of management. He gets to say that he even speaks on behalf of management.
And a good manager knows how to keep that type of employee away, because his innate sense of favor can always switch to something more profitable.
But there is an even more serious case – good managerial self-esteem as a result of an education from an economics university (which apparently does not know how to go bankrupt by good management), but then is forced to go through a circle for Software engineers just to break into the guild of specialists. There, the split is already coming to another level. And it is avoided not only by specialists, but even by incompetent managers.

Christopher replied:

So many words in an attempt to original sound, based on information from a profile in which there is nothing true, you would have asked, I would have saved you these strains 🙂 You take criticism too personally. Judging by the post and your comments below, the discussion is superfluous. You will find many like-minded people here, just as out of space in business matter as you are, and there is nothing strange about that. The bad thing, though, is that thanks to social networks, incompetent opinions are spread very quickly and very noisily.
However, I will try to explain it briefly to you – I know that all programmers feel you are part of the IT sector, and rightly so. But this is in terms of where you are employed, where you generate work. From a business point of view, there is no IT sector in Europe (with some very few exceptions). Technology companies serve the real business sector with services or products, and yes, that real sector may or may not be affected. Then your work, be it “high-tech”, empties out of content as quickly as the financial resources of the company you work for are emptied. This company can operate in favor of many different real business sectors and it makes no sense to use the IT sector under a common denominator.

And any general management thinking just goes to show how poorly aware you are of the real business situation at the moment.
I could bet that 99% of the “ITs” you don’t know, and you never knew, even if the companies you work for are profitable, whether they spend two against the money spent on you, or lose so much. And guys how many of you even knew that organizations like BVOP started campaigns for free project management certification for COVID-19 affected countries?
The fact that you have come under the spotlight in recent years and you are now surprised that it is possible to lose your high-tech job is surprising, I know. And it’s normal. I’ve met many good programmers, unfortunately very few of them have emotional intelligence even close to the national average, which is very low.
Stay tuned! More code and less reflection on politics, economics, property prices and measures to deal with global crises.

Martin joined the conversation:

Judging by what you have written, you obviously have a very superficial knowledge of the sector, development is only about 20% of it. Although it is at the surface. Trained people in this sector have always been on their toes because it took years of investment to train a specialist. With the advent of technology in various “non-technology” industries, demand is increasing and this is a global trend that has continued since the industry’s inception. The current situation only increases the demand for services provided and created by the so-called IT sector. Just one example, many companies have come to realize that home office and remodeling jobs are effective and low-cost and are starting to make them standard. It is no coincidence that employees in this sector have always enjoyed the benefits of any legislation in the world during relocation.

Vladimir replied:

I’m glad you appreciate my experience with original sound. As for “… information from a profile in which nothing is true …”, unfortunately, I’m an ordinary person and I don’t have the ability to guess. Even here, the masses are not used to lying about their profiles.
Otherwise, I understood very well what you said. You underestimate me a little. For me, logical thinking is professional distortion.
And your way of speaking about the sector shows how much you want to be a part of it, but obviously nobody accepts you. That’s why you pretend to be staring at him. (I’m good at psychology and philosophy)
For you, I will specifically say it in plain text –
Budgets in the IT sector are projects. They last for months or years. There is tremendous flexibility, such as working from home; there will be no project delay. To declare a crisis situation before the crisis is actually felt is pure speculation.
Especially when it comes to when. Even before all other industries that have suffered significantly directly, declare a crisis and cut workers or reduce wages.
On the other hand, telework ads have jumped in numbers by huge numbers.
It looks like we’re going to have a crisis ourselves.

I evaluated the experience correctly, the result will still leave it invaluable to just see and be affected by it.
I did not assume that my profile would be a topic of discussion, as the content of what was said was important.
My way of speaking about the sector is because I know him, first-hand, and many others. No, I don’t want to be a part of it and I never wanted to.
Budgets in the IT sector are projects.” – Again, you come from your own limited point of view and generalize, making your opinion relevant. Yes, in the companies where you worked, you may have worked mainly on major projects for which budgets were provided, of course. But this is not the situation in the entire IT sector.
You obviously don’t understand what I’m saying – there are many IT companies serving many different businesses that have a radically different business model, exposed to different business and project risk, acting differently to deal with it. And no, you are not the one who can put everyone under the common denominator and scold the management, such greedy is punished by the market. See Risk Management in Project Management practices.
Releasing people to IT positions is something normal in tough times, accept it, I know it’s new to you, it’s reality.

Vladimir replied:

Not only do you know nothing about the IT sector! But I’m beginning to doubt your management knowledge as well. Apparently, you have graduated from a university with a core training profile – Economics, which, however, failed economically, is clearly influential.
You can always be one of the first or second managers.

George joined the conversation:

Personally, I rarely read posts here beyond the main purpose of the site, but I read with pleasure those of Vladimir. Although quite sharp at times, a person says things as they are. It is strange that the management has no pretensions to what is written, but certain ladybugs who, in their desire to qualitatively groom the buttocks of the companies in which they work, jump with stupid arguments. Well, he’s an employee, of course, from an employee’s point of view he’ll look from where else? Guys, the only way to be confident about your future is to have a professional self-esteem. Jumping to anyone who allows themselves criticism of their employers, without looking at how real and valid it may be, just to let the eyebrows at your company see how loyal you are, only shows how unhappy you are. Usually, people like you are the first to bang.

Damian wrote:

To a large extent, the situation depends on the business model. Outsourcing may affect more than product companies. Innovation, including management, can be very important now.

Jack joined the conversation:

The whole job sounds like a joke to the five cannibals who started working for an IT company. Eat Influencers, Coaches, Project Managers, Bloggers, Designers, Headhunters, Consultants, Scrum Masters, Monetization Managers, … and no one understood.

Daniel joined the conversation:

I wonder how much the local market will be affected. And secondarily, the cadre people sooner or later become aware and, or physically move to live and work elsewhere, or work remotely, but not for Europeans.

Although I fully agree with Vladimir’s comment, I really am not convinced that the impact on the European IT market will be large.

This IT market is mostly driven by powerful technologists who have not yet realized the real pay they deserve. They can be easily manipulated by our typical sorcerers.

Vladimir replied:

Whoever had to do with the US banks that went bankrupt broke it. But in our small country, we didn’t even have one branch of the mentioned banks. We were really isolated from this problem. Mainly because our financial operations are microscopic. But that did not prevent us from going through the crisis more severely than in the US because of speculation about the situation.

Daniel replied:

I spoke hastily to some extent and I apologize.

I agree that my country does not have a very large IT sector and that most businesses just have IT units (which are ruthlessly cost-cutting, and this is not just in Europe, either). And I agree that if an IT professional is cut short by the support of restaurant software, this is felt in our industry too.

Yet, fortunately, our country is not the whole world. And I continue to say that I do not think that we will experience great turmoil here, especially in IT. Not because there will be no layoffs – there are. And because local businesses are generally bargaining until the last penny for everything IT and beyond the crisis.

Miriam joined the conversation:

You can never teach him something until he himself realizes and understands it!
A very nice proverb is “Violence does not work!”, Which applies to all things in life.
My situation is that I continue to work (at least for now) with the same salary, with no redundancies in the company where I work and no pay cuts, or at least I do not know about such information.
I explain to a lot of friends and acquaintances from the IT industry, as you, that companies have no logic not to be of the type 3 that you explain.
The client paid for the software by entering into a contract and, if he accidentally decided to make it interesting, that is, to justify the virus and not want to pay, he could be immediately ordered.
Friends and acquaintances in the same field are trying to convince me of the following:
Company X creates software to tell the real estate industry, such as Address. Since it is currently assumed that demand for property will fall, not price (because many people think and confuse that this will happen, ie the price will fall), the company believes that this is a reason for termination the software contract between them with the excuse “They have nothing to eat and people to buy me housing”.

Accordingly, software company X is launching a release of people, pay cuts and the like. And that is very wrong!
This is an investment for the future!

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