Cramsession gets thousands of visitors that are considering
career changes within the IT certification world. Many of the first questions
asked have to do with the cost of new courses or the degree of difficulty of
the exam but one of the most consideration that is often overlooked is the economics
of the matter.
IT Professionals live and work in an
economic environment. There is no escaping the fact that we are all being
influenced by unforeseen economic forces. Sometimes these forces can have a profound
impact on our lives. It makes sense then to consider some of the economic
principles that might end up tossing you around when considering a major career
move.
The economic rewards that an IT
professional will enjoy is governed by a few basic economic principles. The most
important of them all is the effects of supply and demand.
Any commodity, whether it be a product or
a service, has a price (your salary) that is governed by the demand for that
product or service and the supply of the same. Generally speaking you would like
to be in a job where there is a high demand and low supply. Obviously, this situation doesn't exist in many areas of IT today but that doesn't mean you can't make money. It's also true that in a truly competitive market, there will never be a long term
situation where supply is limited. Eventually, in a competitive environment, the
number of people entering the professional approaches the number required and
salary levels drop. We've all seen this happen first hand over the past 2 years. But again, this doesn't mean you can't make money or at least improve your chances of making money.
The most important consideration
when choosing career moves is how to get yourself into a position where you are
one of a select few and there is limited opportunity for others to get
in. In economic terms, this refers to a 'barrier to
entry'.
There are many ways that this can be
accomplished. Certifications, while less so, still provide a barrier to entry to varying degrees. The
tougher it is to get the certification, the higher the barrier to entry and the
better the economic rewards. Consider working towards certifications like the
Cisco CCIE certification. There are so few CCIE professionals and it is so tough
to get into this club, a CCIE can pretty well dictate their employment
terms.
The second most important economic
principle an IT Professional should be aware of has to do with the upper limits
to earning power. Put quite simply - if you are working for an hourly wage, then
there is an upper limit to the money you can earn. No matter how hard you work,
there is still a limit to your earning power.
Contrast this to a software vendor. Once
their program is ready for the market, selling thousands is not much different
than selling hundreds. The upper limit for money earned is in the clouds.
Applying this to the IT Professional, get
yourself in a position where you are raising the upper limits to your
income:
If you are working for a wage, work on contract
instead.
If you are selling your labor, try to
leverage this by getting multiple sources of revenue for the same labor. For
example, if you have a contract to install Linux on 100 different machines, do
it by getting paid per machine. Then set up one machine (your hours of labor)
and then use a utility like Norton's Ghost to replicate this to all the other
machines. The more machines you do this to the bigger your rewards.
If you are selling your knowledge, sell to many
for a small amount each as compared to selling to one for a lot. For example, if
you are an Exchange expert, write a book where you could earn $5 per copy as
compared to doing one large install contract that pays a flat fee.
The third most important
economic principle an IT Professional should be aware of has to do with what you
sell to earn your income. If you sell your labor you will never be as far ahead
in the long run as selling some 'thing'. In economic terms it is referred to as
'renting your capital'.
As an IT Professional you are in a unique
position to see the need for a new gizmo, a unique service or better
implementation. If you can provide an answer for this need, then your economic
returns can be much greater in the long run than selling your labor. Look for
the opportunities. Create the new web site. Figure out a unique
business-to-business selling tool. Develop that software program or patent a
process. The initial returns might be dismal, but the long term picture is much
brighter.
Consider these important economic
principles when you are in the middle of career decisions. Take 15 minutes to
jot down on a paper how your career choice would be influenced by the economic
considerations. It could just be one of the most valuable 15 minutes of your
working career.
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