During these gloomy economic times not a day passes by without another analysis and prognosis of how the current slowdown is going to affect the permanent and contractual (global) SAP job market. Make no mistake: It is important that industry experts try to make sense out of the current market situation. Let me look at this from a freelancer’s point-of-view. From where I stand, a lot of opinions and outlooks are made from restricted angles. Let me clarify this: when I say “restricted” I mean a limitation in terms of location and SAP sector. As a result, some advice might be perfectly reasonable in one location or sector, but not in another.
SAP Freelancing markets differ from country to country
For example, the legal and cultural environment that a contract ABAP generalist or Netweaver Architect finds himself in Germany, the Netherlands or United Kingdom can differ quite significantly. Labour market regulations, contractual specifics and a general approach/tradition in the use of contract workers, to name but a few, all have an impact on the individual market situation in each country. For decades the UK has already enjoyed a more flexible labour market, where use of contractors is far more commonplace and accepted as in Germany, for example, although things are improving in SAP homeland. In the US the picture might be similar or different altogether. In addition, government rescue plans in individual countries might support or restrict the future of small and medium sized enterprises (SMEs), a group to which freelancers belong.
Why am I saying all this? Well, I am trying to point out how complex the market can be. Whilst the current explanations and outlooks are all justified and important, I feel that the number of “unknown’s” in all of this are still very high. Obviously this also depends if questions are being asked (ie are companies interested in specific areas such as the “SAP contract market within EMEA” ?). I also want to set the scene for my own antithesis, namely that I think that not all SAP consultants (both permanent and contract) should go and find a niche to specialize in – at least not yet. This is in contrast to a lot of current suggestions and advice.
Why should an experienced SAP development consultant go for niche at this moment in time?
If you’re already a specialist in one particular area of SAP, say IS Utilities Configuration and Development, then you’re in pretty good shape during these current hard times. But industry solutions and niches always have the danger of becoming overcrowded or (more likely) saturated. So if you’re contemplating a move into a niche then be aware that aquiring the skills can take some time. By the time you’re in the game the depression might be over, most implementation projects are over, are bedding in (with only outsourced support work left) and you could have lost out by not being flexible enough to get out off your niche again. Niche might also mean that you have to do a lot of travelling to find those niche companies.
Don’t put all your eggs in one basket!
On the other hand, remaining a generalist in these times could mean that you’ll be able to work on different levels (analysis, development, training, mentor, team lead, project management, etc). There’s IT departments out there who have snippets and short-term work available during hard times that could keep you afloat until the time things are picking up again. This might also mean that you do not have to travel as far as a specialist, whose work might be scattered all over Europe or the US, for example. I am basically saying you’re not putting all your eggs in one basket.
Jon Reed
December 10, 2008 at 6:14amHey Michael.
I read your post with a lot of interest, not the least of which is that I have been planning a blog entry on a similar topic for some time. I don’t think I’ll get to mine for at least another week or two, but I’ll let you know when it’s up.
I think you raise some really important points. I tend to agree in the sense that having an unmarketable niche in SAP can backfire. It is probably better to be a generalist than have a niche you can’t market easily. I know your post was focused more towards developers so I’ll try to keep mine on the same level. The danger with being too much of a generalist as an SAP programmer is that generalized programming work is more likely to be outsourced.
I think in some ways the “niche versus generalist” debate can be a false argument, in the sense that I think you can cultivate both. I recommend having a core base of well rounded SAP skills in a particular area, with a couple of specializations that logically extend from that core. This is an important point because some folks chase niche skills that don’t relate to their core strengths. And when you’re new to SAP, you shouldn’t just chase a niche, you want to be building a foundation of skills also.
So, in many cases, I think there can be both a core and an emerging skill. An example might be an ABAP-BW programmer who decides to add MDM programming to their core. MDM is a good logical extension of BW skills, but since the MDM product still has a smaller level of market acceptance, it doesn’t make sense to put all eggs in the MDM niche unless you are a true expert. So, combining the core ABAP-BW with MDM could make sense. Another direction for the ABAP-BW person could be towards Business Objects functionality, though that would mean learning more Java-related tools – though this can be a good thing as well!
At the same time, chasing some hot industry niche, for example, while forgetting to master object-oriented programming “foundational” skills like ABAP Objects – this would not make sense. I will say that for the most part, the most effective SAP resumes have some degree of repetition in them – people who have done the same thing over and over again. The repetition builds expertise. Remaining too broad or too general doesn’t give you that focus.
Here’s an example of a technical profile that can be very effective: someone who started as an ABAP ALE-EDI-IDOC specialist (remember that stuff? :)), then moved into best-of-breed EAI technologies like Tibco and WebMethods, and then into XI programming. This is a profile I’ve seen a few times that works very well. It’s just one example, but what I like about it is: the person in question has some cutting edge skills, but over time, they have been true to their skills foundation and so they have a deep base of core expertise to draw on.
There isn’t one right answer to your piece, just thought I would share a few thoughts.
– Jon –
Maria
November 24, 2009 at 9:20pmMichael: Excellent blog.
Jon: Excellent post.
Very interesting comments. I wish I had a mentor like Michael. Now the crisis is gone (at least here) but both comments remain valid.
regards from Italy, Maria