1. ITAA 2003 Workforce Study May 5, 2003 IT Workforce Convocation Arlington, VA

2. 2003 IT Workforce Study ITAA is the leading IT Industry trade group – over 400 corporate members ITAA’s workforce studies have been the industry benchmark since 1997 Our workforce and education efforts lead the industry

3. 2003 IT Workforce Study Market Decisions Corporation of Portland, Oregon conducted the research The survey is based on telephone interviews with 400 hiring managers, selected at random and representing both IT and non-IT companies Results have sampling variability of +/- 4.5 % at the 95 % confidence level This survey update was conducted March 27-April 15, 2003

4. 2003 IT Workforce Study 2003 Study Sponsors Cisco Systems Dice, Inc. ITT Technical Institute Microsoft Oracle SRA International

5. 2003 IT Workforce Study Key Findings: -Demand for IT workers is at four- year low -Size of the workforce unchanged -Offshore work is on the rise -Planning indicates more positions going offshore

6. 2003 IT Workforce Study Predicted need for new workers is 493,000 in 2003 Down from over 1.1 million in Q1 2002, and industry high of 1.6 million in 2000 IT and Non-IT companies showing comparable reductions

7. 2003 IT Workforce Study

9. Size of the IT Workforce is stabilizing Hirings and terminations slowing Terminations for IT companies have slowed more than for non-IT, and hiring in IT companies is flat

10. 2003 IT Workforce Study

13. Offshore outsourcing on the rise: 12% of IT companies and 3% of non-IT companies already have overseas operations 22% of large IT companies are already overseas 15% of IT firms say they will, or are undecided about, moving jobs overseas in the next twelve months, While 6% of non-IT firms say the same

14. 2003 IT Workforce Study

15. Conclusions: –Economic recovery is jobless –Unemployment hit 6% last week –Over 8% unemployment in Silicon Valley –Cost pressures send more work overseas –Global uncertainty impacts hiring plans –All adds to caution and reduced optimism