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Thursday, August 24, 2006

How to survive the Offshoring Wave - Bring your swim trunks

Being an independent contractor, most layoff have never affected me personally. But having seen many of these layoffs and offshoring excerises, I can definitely speak to the good, the bad, and the ugly of these events. I've been asked for advice by employees over a range of topics. Here are my favorites.


Why oh god why are they doing this to me(us)???

It's the nature of the beast and it can't be avoided. Offshoring makes too much fiscal sense to companies. Granted the 50-75 percent savings that is touted really is 10-25 percent after the exercise is completed. That still is a savings, so deal with it. Companies have no loyalty to the personnel anymore.

How do I survive this?

Review who you are in the corporate world. Are you a resource that does repetitive tasks or are your duties more high touch/change focused?

If you are a person that does repetitive tasks, be prepared to be tapped on the shoulder at some point. If your work can be documented from end to end then it's an easy candidate for the punt around the world.

There was once a belief that call centers and IT development were the prime candidates for offshoring. That's not true anymore. AP and AR accounting, billing, and certain IT infrastructure jobs are now being offshored.

So, if you fit into those categories, what can you do? Here are some choices
  1. Get out of your current job ASAP! Just make sure what you pick as a lateral move isn't also a target.
  2. Elevate yourself from a lemming to a value add. Remember the repetitive part of the job goes offshore, but the knowledge and the customer touch points stay local. Look to position yourself as a "must have" due to your customer relationship skills, your innate knowledge of the environment, and your leadership. I know I can write this easily, but it's not an easy thing to do. Most people have a hard time changing gears and re-inventing themselves as something they haven't been throughout their tenure in the position.
  3. Accept that you are a potential target and start preparing your marketing kit to the outside world of your company. This is a mental change that most people also struggle with. We were brought up to believe to be loyal to your company and the company will be loyal to you. Trust me there is no such thing! This doesn't mean that you are becoming a slacker within your job, but it does mean that you are being pragmatic about your time with your current position. So what is your marketing kit? Easy, your resume' and some cover letters. You can post your resume online in most of the major sites anonomouysly. That way you can get some feelers in the market by the interest your resume' generates.
  4. Build your network of potential job givers. Start polling your past coworkers that you keep in touch with. Not a friendly sort? No problem, use the job boards for recruiters. When you post your resume' to the major sites, many recruiters have the ability to peruse the latest and greatest and they will contact the ones that interest them (Hopefully yours). Keep in contact with those recruiters by sending them updates on your current status regularly. Recruiters see hundreds of resumes and candidates so eventually you will get lost in the shuffle if you don't be proactive with communication. I keep about ten recruiters that I know informed on a quarterly basis if I'm looking, if i'm happy, if i'm unemployed, etc. My longest gap in employment was 3 months in 2001 -2002 after 9/11. That was probably the worst market I've experienced for people in my field. 3 months in that market was almost miraculous. I knew people that were out of work for 2 years.
  5. Use social networking sites for professionals. I use LinkedIn (www.linkedin.com) for building my contacts and investigating companies that I might be working for. It's a useful site, and it's meant for professionals, not teenagers(read: www.myspace.com)

How do you deal with the stress of being a contractor?

I've done it for a long time. I've long ago resided myself to the fact that companies are not loyal to their employees. I've positioned myself as a resource that provides results, so getting a job is never a problem for me. People are still shocked when I say that I can get a job almost anywhere.

Now granted in the last two years I've had two children. (Yes my wife and I practice the rythym method - badly) I've actually reconsidered my workstyle. It's natural. Maybe there is such a thing as security. But then again, I see another offshoring or a layoff to cut costs and I realize that it is never to be.

So, how do I deal? Simple, I keep myself in the know of the job market, the economy, the skillsets in demand, and my current situation. I know not so simple but most people can do this.

Know the job market. Subscribe to mails from the major job board sites for positions that you would be doing. Look at the postings and see how the market is faring. If you spot a slow time, look to bunker down at your current position to ride out the storm.

Know the economy. Same as above, knowing the economy is vitally important to knowing your particular job markets. Sense a slowdown? Bunker down, position yourself as an above average contractor that needs to be kept.

Know the skillsets that are in demand. Touting your skills in the Wang word processor will get a chuckle but won't get you an interview. Cull the stuff that's not relevant anymore off your resume'. Constantly look to improve yourself by being involved or learning the latest and greatest or my fave, the bleeding edge. Spend money, or offer up your services at a reduced rate if the engagement involves new leading edge skills that you can develop.

Know your current situation. Be proactive with your boss, take the questions to them. I practice a very pragmatic approach with people that I report to. I ask them frankly if my contract will be renewed usually a month before it's due, assuring them if it isn't, I won't be taking it personally and providing my best work right up until the end date. Sometimes budgets and company direction have other plans that don't include you and you can't take it personally.

This is the important part. Assure them you are a professional and not a pissed off child because you're not being kept. Don't burn a bridge, because the world is a small place. The benefit to actually working harder towards your end date is many things, including referrals, a potential spot in another part of the company, extensions to your current assignment, etc. Be an adult and you shall be rewarded.

Consider your resume' like a plant. Trim off those dead things, and keep it trim and healthy. I actually didn't follow my own rules in the last year and now I'm paying for it by doing a complete resume' makeover. Most people rarely if ever concentrate on the resume' until they've been sacked. If you're working on it at least once a month, you're better prepared to post it when requested.

In summary, it's been my experience that these layoffs, although painful are relatively good for many of the parties involved. I'll explain that in a later post.

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