Industries and Careers for Engineers

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2008 EDITION

INSIDERGUID

Industriesand Careers

for Engineers


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Industries and Careers for Engineers

WETFEET, INC.

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Website: www.wetfeet.com

INDUSTRIES AND CAREERS FOR ENGINEERS

2008 Edition

ISBN: 978-1-58207-765-9

PHOTOCOPYING IS PROHIBITED

Copyright 2008 WetFeet, Inc. All rights reserved. This publication is protected by the copyright

laws of the United States of America. No copying in any form is permitted. It may not be reproduced,

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this WetFeet Insider Guide make no warranty, express or implied, about the accuracy or reliability

of the information found herein. To the degree you use this guide or other materials referenced

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All illustrations by mckibillo


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CHAPTER

1 INTRODUCTION

2 At a Glance

3 Overview

4 Employment

Outlook

7 INDUSTRIES

8 Aerospace and

Defense

11 Biotech and

Pharmaceuticals

16 Computer Hardware

19 Computer Software

22 Consulting

26 Energy and Utilities

30 Investment Banking

33 Nonprofits and

Government

37 Telecommunications

43 CAREERS

44 Information

Technology

46 Manufacturing

and Production

49 Medicine and

Health

52 Operations

54 Programming

57 ProjectManagement

59 Supply Chain

Management

61 Web Development

321

nts


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1Introduction

At a Glance .............................

2

Overview ................................3

Employment Outlook ................4


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AT A GLANCEEngineers enjoy abundant employmentopportunities. o help you weigh the myriad options,

this WetFeet Insider Guide offers a broad range of

information about relevant industries and careers. Te

material falls into three chapters.

• Chapter 1 provides an overview of engineering,including popular specialties and the employment

outlook for engineers.

• Chapter 2 profiles industries that hire engineering

graduates in specialties ranging from aerospace

to telecommunications. Each profile lists major

industry players.

• Chapter 3 discusses major career areas for

engineers, including information technology and

manufacturing.

HOW WE ARRIVED HEREIn this book, career has a specific definition: It refersto any functional occupation that spans unrelated

industries , including biotech, consulting, andnonprofits. As our insiders will attest, engineering

careers are generally consistent across industries,

allowing employees to cross over from one vertical

sector to another.

So as you study our examples and apply them to

your job search, ask yourself: Is the kind of work I

hope to find specific to a few industries, or does it

apply to many different ones?

HOW TO USE THIS BOOKo get the most from this book, find the job seeker

descriptions below that best match your feelings and

follow the recommendations in that section.

Clueless?

If you’re confused, don’t panic! Simply read all theprofiles and identify those that best suit your interests,

strengths, education, and experience. Avoid focusing

too narrowly on a single career or industry. But by

the same token, don’t hesitate to whittle down your

choices.

Indecision can paralyze you, so we recommend

selecting two or three potential paths to keep the

momentum going. But remember, nothing’s etched

in stone. Feel free to change paths if the one you’re on

isn’t working.

Getting There

If you generally know the kind of work you’re after

and have the appropriate educational background

and/or experience, your task is easier. You probably fit

one of these two descriptions:

I have an industry in mind, but I’m not sure of

what career role to pursue.If this sounds like you, review the industry profiles

matching your interests, then read the chapter on

careers. As you study the material, think about which

roles are consistent with your strengths, education, and

experience. You may need to do additional research

to learn about the positions that interest you—for

example, by reading WetFeet’s real people profiles

online (www.wetfeet.com).Once you’ve identified several potential positions

to target, use the relevant list of major industry players

to get you thinking about the companies you want to

consider.

I’m drawn to a specific career, but I’m unclear as

to which industries I should target.

If this describes you, look for the appropriate careerprofile in Chapter 3, then read the industry profiles in

Chapter 2. arget several industries.

Continue your research online. Start with Wetfeet.

com’s career and industry profiles, which provide

even more information about dozens of careers and

industries. You’ll find the real people profiles especially

illuminating. Be sure to check the additional resources

at the end of each profile.Don’t despair if your target career doesn’t appear

in the careers chapter. Tat just means you’ll be


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considering a smaller set of potential industries. Our

industry profiles will help guide you to those sectors.

Although thorough, the profiles aren’t exhaustive.

If your target career isn’t in an industry profile,

judge whether it’s likely to be a prevalent role in that

industry. If you’re unsure, check the careers section of

the largest industry players’ websites to see whether

those organizations offer positions comparable to what

you’re seeking.Good luck!

OVERVIEW

As the U.S. Bureau of Labor Statistics puts it,

“Engineers apply the theories and principles of scienceand mathematics to research and develop economi-

cal solutions to technical problems.” Most specialize

in areas such as civil and mechanical engineering. You

might think of these specialties as families, since many

of them break down into subspecialties. Choosing one

specialty doesn’t preclude you from working in another

field; crossing over is common.

Professional societies recognize more than 25engineering specialties. New ones continue to develop

with advances in science and technology.

Te following specialties should give you an idea of

specific job opportunities.

AEROSPACE ENGINEERING Aerospace engineers develop components for aircraft

and spacecraft, including planes, satellites, and missiles.Tey typically work for aircraft manufacturers, satellite

communication companies, and defense contractors.

CHEMICAL ENGINEERINGGenerally speaking, chemical engineers are experts

in substances and how they react to one another

or to various technical processes. Drawing on their

deep understanding of molecular activity, chemicalengineers design manufacturing processes for products

such as detergents, gasoline, plastics, and synthetics.

CIVIL ENGINEERINGCivil engineers develop roads and bridges, dams and

irrigation systems, water-treatment processes, erosion-

control techniques, and public transportation systems.

Tey also test the structural soundness of buildings,

particularly large ones.

Te term civil engineering indicates projects relatedto public works. Te work itself may involve principles

of mechanical engineering, electrical engineering, orother specialized fields. While most civil engineering

jobs are with government agencies, some are with

service firms that contract with governments and

businesses.

COMPUTER HARDWARE PROCESSENGINEERING

Process engineers develop faster, smaller, and morepowerful integrated circuits in a never-ending quest

to make components that will do more in less space.

Unlike a conventional circuit, whose components

are designed separately, an integrated circuit is so

tiny that the entire unit and its connections must

be created at once. Trough the use of chemicals

and light-sensitive materials, multiple copies are

etched onto a wafer, or silicon disk. Te wafer is thensliced up, and the individual circuits are packaged

before being inserted into a larger circuit, such as a

computer motherboard.

ELECTRICAL ENGINEERINGElectrical engineering is the biggest engineering field.

It encompasses power systems and transmission,

circuitry and communication, and subspecialties suchas industrial robots, telephone switching systems,

microprocessors, and digital broadcasting. Electrical

engineers might design computer chips, circuit boards

for audio equipment, broadcast systems for V

stations, and city utility services.

ELECTRONICS DESIGN ENGINEERS

Electronics design engineers create the circuits atthe heart of all electronics hardware. Circuits may

be traditional or integrated, analog or digital. One


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electronics design subspecialty is radio frequency

(RF) engineering, which involves circuitry used for

transmitting and receiving radio signals.

INDUSTRIAL ENGINEERINGIndustrial engineers work to improve efficiency,

safety, and product quality in factories. Commonly

charged with coordinating the efforts of mechanical

and electrical engineers, they frequently rise tomanagement positions, particularly in manufacturing

industries.

MATERIALS ENGINEERINGMaterials engineers adapt ceramics, glass, metals,

polymers, and resins to various business and

manufacturing needs. For instance, a materials

engineer might develop a stronger metal for highwaybarriers, or a shatter-resistant glass for beer bottles.

MECHANICAL ENGINEERINGMechanical engineers create and improve engines,

energy systems, pipelines, robots, and other

equipment. Some develop machines that make it easier

to harvest crops or produce semiconductors. Others

find new ways to design cars. In all instances, the ideais to boost safety and efficiency.

QUALITY ASSURANCE AND TESTENGINEERSQuality assurance engineers ensure that a company’s

manufacturing facilities operate smoothly. Tey

routinely design methods to monitor production

lines, working closely with other engineers whenproducts aren’t being manufactured to specification.

QA engineers also study new products to determine

acceptable specifications.

est engineers, like QA engineers, set up equipment

to check whether products are being manufactured

correctly. When a product is faulty, either on the

production floor or after it’s been returned by a

customer, they look into the source of the problem,often uncovering fundamental flaws in production

techniques. est engineers also create prototypes

to ensure that a finished product will meet design

engineers’ specifications.

SOFTWARE, WEB, AND ITENGINEERINGSoftware engineers create programs for computer

platforms such as Windows, Macintosh, and

Unix. Web engineers are essentially programmers

who develop applications specifically for the Web.Information technology specialists build and maintain

networks, typically for companies and government

agencies. I engineers safeguard the reliability and

security of both LANs (local area networks within

offices) and WANs (wide area networks between

remote locations).

EMPLOYMENT

OUTLOOKTe future looks bright for engineering grads,

according to the National Association of Colleges

and Employers’ 2006 Job Outlook Report . Electrical,

chemical, and computer engineering made NACE’slist of the ten most marketable bachelor’s degrees, with

mechanical engineering taking the top spot.

Te Bureau of Labor Statistics expects engineering

opportunities in general to keep pace with overall U.S.

job growth through 2014. However, prospects will

vary widely by specialty:

• Computer software, biomedical, andenvironmental engineering opportunities are

projected to grow much faster than U.S. jobs

overall.

• Opportunities in agricultural, chemical, civil,

computer hardware, electrical, electronics, health

and safety, industrial, materials, and mechanical

engineering are expected to grow somewhat fasterthan U.S. jobs overall.


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• Opportunities in aerospace, marine, and nuclear

engineering are expected to grow slower than U.S.

jobs overall.

• Petroleum and geological engineering

opportunities in the U.S. are expected to decline.

Even specialties with relatively low growth rates

should present ample opportunities, especially as babyboomers retire. And just because demand for particular

engineers is waning in the U.S. doesn’t mean it isn’t

growing abroad.


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2Industries

Aerospace and Defense ..............

8

Biotech and Pharmaceuticals ..... 11

Computer Hardware ............... 16

Computer Software ................. 19

Consulting ............................22

Energy and Utilities ................26

Investment Banking ................

30

Nonprofits and Government .....33

Telecommunications ...............37


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AEROSPACEAND DEFENSE

INDUSTRY OVERVIEW Aerospace and defense manufacturers develop aircraft

and spacecraft for the commercial sector, as well as

military aircraft, spacecraft, missiles, tanks, and other

products for the armed forces of the U.S. and various

foreign countries.

Te commercial side of the industry has been

sluggish in the past decade. In the wake of 9/11, top

commercial manufacturers lost billions of dollars

and were forced to lay off tens of thousands as orders

plummeted.

oday, nearly half the industry’s revenue comesfrom military orders. Lockheed Martin, for one,

relies even more heavily on the Pentagon, deriving 85

percent of its revenue from U.S. defense contracts.

Additionally, aerospace firms have large contracts with

NASA—for example, Lockheed and Boeing have

inked deals with the space agency that account for 3 to

4 percent of their annual revenue.

Aerospace projects typically involve highcomplexity and low output. Te processes aren’t

overly standardized, and creating products requires

substantial engineering.

Projects for the military and NASA often involve

cutting-edge technologies that are years ahead of what’s

currently available to the general public. As an insider

puts it, “Defense is R&D for the rest of the economy.”

TRENDSSoaring Defense Spending

U.S. defense spending has soared under the Bush

administration. Tat might not bode well for the

deficit, but it does have advantages if you’re looking

for a career in aerospace and defense. Te 2008

federal budget allocates more than $500 billion to

the Department of Defense, plus $200 billion insupplemental spending for the military conflict in Iraq.

Te commercial side of the industry is slowly

enjoying production gains as well. But nobody has

the military beat when it comes to spending on new

aircraft and aerospace equipment.

High-Tech Defense

Fighting terrorism remains the top U.S. defense

priority. Tis means less demand for traditional

weapons like tanks and more for new systems that can

help locate and eliminate terrorists before they strike.

In coming years, some of the most dramatic

growth in the defense sector will come from

makers of defense-related products in the I and

communications sectors. Particularly on the rise are

innovations to assist soldiers on the front lines and

in the field. Tis growing high-tech trend is giving

midsize companies a larger slice of the defense-

spending pie.

Competition from Abroad

In the U.S, there’s only one major aircraft

manufacturer: Boeing. In 1997, the company

swallowed its sole domestic rival, McDonnell Douglas.

Boeing’s only rival now is Europe’s Airbus, which

has been steadily gaining market share. Over the past

few years, the companies have traded places as the world’s leading aircraft manufacturer. Boeing regained

the top spot in 2007 with respect to commercial

aircraft orders, thanks partly to its fuel-efficient

787 Dreamliner, crafted largely from lightweight

composites. Meanwhile, Airbus’s long-range, double-

decker A380, which was supposed to be a blockbuster,

met with lukewarm response and suffered production

problems. In response, Airbus shook up its seniormanagement. More recently, Airbus has rebounded,

winning orders for its own fuel-efficient plane.

HOW IT BREAKS DOWNCommercial Aircraft and General Aviation

Tis market segment produces planes and helicopters,

as well as components for both. In addition to big

daddies Boeing and Airbus, players include corporate jet manufacturers such as General Dynamic’s

Gulfstream unit, Canada’s Learjet maker Bombardier,


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Brazil’s Embraer, extron’s Cessna subsidiary, and

Raytheon.

Military Aircraft

Tis segment manufactures our military’s birds of prey,

including Boeing’s F-15 Eagle jet fighter, Lockheed

Martin’s F-16 Fighting Falcon, and Northrop

Grumman’s B-2 Spirit stealth bomber. Also included

here are makers of transport planes and helicopters.

Missiles and Space

Te big players here depend on U.S. and foreign

government spending for the bulk of their revenue.

Powerhouses in this segment include Raytheon, which

produces the Hawk, Patriot, and omahawk missiles;

Lockheed Martin, maker of the rident II missile

and provider of management services for NASAoperations; and Boeing, the primary contractor for the

NASA Space Shuttle and International Space Station

programs. France’s Arianespace leads in the production

of satellite-launching systems, which enjoy growing

demand.

Ground Defense

Tis segment comprises manufacturers of militarytanks and transport vehicles. Perhaps its most

important member is General Dynamics subsidiary

Land Systems, maker of the M1A1/M1A2 Abrams

tank—the U.S. military’s only battle tank—and other

armored vehicles. Additional players include BAE

Systems Land and Armaments, maker of the Bradley

infantry fighting vehicle and artillery equipment; and

Krauss-Maffei Wegmann, maker of the Leopard mainbattle tank.

Satellites, Electronics, and Communications

Commercial demand is sure to grow in this segment

as countries become more technologically intertwined.

Individuals and companies increasingly depend on

satellite technologies for communications, global-

positioning systems, and weather forecasts. Othertechnologies in this segment include avionics, or

electronics used in planes and helicopters; information

systems, such as mission control in Houston and

aircraft modeling at Boeing; missile-guidance systems;

and infrared, radar, and sonar. Northrop Grumman,

Honeywell Aerospace, and Raytheon are among the

big players.

Shipbuilding

Te role of this market segment is to build and

maintain seagoing vessels such as aircraft carriers,

destroyers, and submarines. Te world’s largest naval

shipbuilder is Northrop Grumman, which owns

Newport News Shipbuilding, the sole maker of U.S.

nuclear aircraft carriers. Not far behind is General

Dynamics, which builds nuclear and ballistic-missile

submarines, the Aegis guided-missile destroyer, and the

LPD-17 amphibious assault ship. Other competitors

include French giant Tales and London-based BAESystems, the largest foreign player in the U.S. defense-

contract game.

KEY JOBSTe jobs in aerospace and defense are nearly

countless, and the good news is that engineers

will fill most of them. Te following job titles and

descriptions constitute only a general guide to industryopportunities.

Design Engineer

Tis position refers to those who design, develop, test,

and implement everything from the smallest parts of

ships or aircraft to the ships or aircraft themselves.

Filling this role are aerospace engineers, who design

planes, rockets, and components such as landing gear, wing flaps, doors, and engines; electrical engineers,

who design electrical systems for planes, ships, and

other industry products; and materials engineers, who

design the materials needed to build the products. Te

work requires extensive computer modeling and tends

to focus on small portions of a project—for example,

the locking systems of a 747 plane’s emergency doors.

Salary range: $48,000 to $91,000


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Avionics Engineer

People in this role design aircraft navigation systems.

Like their industry counterparts, avionics engineers do

a lot of computer-aided design and start off working

on small sections of entire systems. Te job requires an

avionics or electrical engineering degree.

Salary range: $50,000 to $105,000

Controls Engineer

As aircraft become increasingly computer-controlled,

this becomes an even hotter job in aerospace and

defense. Controls engineering involves the design

of systems that interpret pilots’ commands to the

plane. Again, a lot of computer modeling is involved

here. Te position requires an aerospace or electrical

engineering degree.


Environmental Engineer

Tis has become a popular field in recent years as

companies struggle to clean up environmental hazards

and comply with ever-changing environmental

regulations. Environmental engineers design

everything from noise-abatement systems (like

those walls around the local airport) to facilities thatdispose of industrial waste. A degree in environmental

engineering is required.


Software Engineer

People in this role write and test navigational software

for missiles, planes, satellites, and sea vessels. o do

this work, you’ll probably need a bachelor’s degree inelectrical engineering or computer science.


Manufacturing Engineer

ypically mechanical engineers, people in this role

design the tools and processes needed to manufacture

aerospace products. Te job calls for managerial as well

as technical skills.Salary range: $51,000 to $87,000

Technical Support Specialist

Tis job involves testing and follow-up maintenance

of aerospace and defense products. ech support

specialists travel more than most of their industry

colleagues because they must visit client sites. Tey

usually have engineering or other technical degrees.


Instructor

Instructors train customers in the use of aerospace and

defense products. o become one, you’ll probably need

a college degree, an instructor’s certificate, and a pilot’s

license or other proof of expertise concerning the

product in question.


JOB PROSPECTSTings are picking up in the aerospace and defense

industry. Te commercial aircraft sector is finally

showing signs of growth, and military spending

continues to rise. Te Bureau of Labor Statistics

expects aerospace jobs to grow 8 percent by 2014—

not bad, but slower than average.

More efficient design and production techniques

may slow that projected job growth. Nevertheless,there should be a fair number of aerospace engineering

positions in coming years as aging workers retire.

Another bright spot: Because of declining enrollment

in undergraduate and graduate aerospace programs,

there are more jobs on the market than newcomers to

fill them.

ADDITIONAL RESOURCES Aerotech News and Review (www.aerotechnews.com) Aeroindustryjobs (www.aeroindustryjobs.com)

Aerospace Industries Association (www.aia-aerospace.

org)

American Institute of Aeronautics and Astronautics

(www.aiaa.org)

Government Executive (www.govexec.com)


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INDUSTRY OVERVIEW

Pharmaceutical (pharma) companies produceand market drugs, from familiar over-the-counter

compounds like aspirin to exotic prescriptions

that inhibit, activate, or otherwise affect individual

molecules in specific medical conditions. Tey also

produce livestock feed supplements, vitamins, and a

host of other products.

Te pharmaceutical drug discovery and

development industry has grown to become one ofthe world’s most profitable. During the past 30 years,

the industry has blossomed, with billions of dollars

spent on research in biochemistry, molecular biology,

cell biology, immunology, genetics, and information

technology—and billions of dollars in profits earned

by drug companies. Indeed, the pharmaceutical

industry sold some $643 billion in drugs in 2006.

Biotechnology is a relatively new kid on the

block. Simply put, biotechnology seeks to duplicate

or change the function of a living cell so it will work

in a more predictable and controllable way. Te

biotechnology industry uses advances in genetics

research to develop products for human diseases and

conditions. Several biotech companies also use genetic

technology to other ends, such as the manipulation of

agricultural crops.

Biotech opportunities largely mirror those in the

pharmaceutical industry. Te key difference is that

biotech firms are much more focused on researchbecause they’re still developing their initial products.

Biotech firms tend to expand their marketing and sales

forces when a product nears FDA approval. And it’s

become common for small companies to seek alliances

with larger firms that already have the requisite

infrastructure in place for these functions.

Biotech and pharma have performed exceedingly

well relative to other industries in recent years. Despiteproblems at some companies, the future looks bright

overall. Among the most pressing industry issues are

the ethical questions surrounding genomics and the

pricing and patent practices of so-called big pharma,

the pharmaceutical giants.

Still, demand for drugs is growing, fueled by

an aging population and burgeoning international

markets. Whether you work for big pharma or smallbiotech, you mustn’t get too attached to the status

quo. Tese days, the business environment can change

overnight. As one insider says, “Even in big pharma, if

there’s a merger or spin-off, you can easily find yourself

without a job.”

TRENDS

Bio BoomSeveral specialties in the biotech arena are receiving

lots of attention, not to mention funding. Proteomics,

BIOTECH AND

PHARMA

Top Ten Aerospace and DefensePlayers, by 2006 Revenue

CompanyRevenue

($M)

1-Yr. Change

(%)Employees

Boeing 61,530 12.2 154,000

EADS (2) 52,025* 28.4 116,805

Lockheed Martin 39,620 6.5 140,000

Northrop

Grumman30,148 –1.9 122,200

Airbus (1, 2) 26,410 3.2 55,000

Raytheon 20,291 –7.3 80,000

General Dynamics 24,063 13.3 81,000

BAE Systems

(1, 2)

19,148 22.4 74,000

NASA (3) 15,470 0.1* 18,693*

GE Aircraft

Engines

(Rolls-Royce)

14,013 8.4 37,300

(1) 2005 figures(2) Foreign company; figures reflect worldwide sales and employment

(3) 2004 figuresSources: Hoover’s; WetFeet analysis


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the study of proteins, is thought by many to be the

future of biotech. Companies such as Compugen,Large Scale Biology, and akeda are leading the way

in the daunting process of mapping the sequences of

amino acids that encode human proteins. Tey hope

to find links to diseases. Another innovation is the use

of monoclonal antibodies (mAbs), proteins that attack

foreign substances known as antigens. Genentech is

a leader in this technology, with its non-Hodgkin’s

lymphoma treatment Rituxan.

Another hot ticket is the area of biodefense. Many

biotech companies are looking for ways to detect and

stop biotech weapons such as anthrax and smallpox, as

well as pandemics such as SARS. Tey’re working hard

to develop antidotes, immunizations, and treatments.

A sector that may be reaping the most benefit from

all this research is bioinformatics, which deals with

the storage, sequencing, analysis, and management of

scientific data. Sales in this market continue to climb,

hovering at around $2 billion in 2007.

Tere’s no doubt about it: Engineers who enter

the biotech field will be participating in some of the

world’s most cutting-edge scientific research.

The Aging PopulationTe growing number of elderly has shifted the R&D

focus of the pharmaceutical industry dramatically.

By 2025, the over-65 demographic will swell to 690

million people. Tis age group, whose members

consume three times as many drugs as younger

populations, is creating significant demand for lower-

cost prescriptions in the face of skyrocketing costs. Te

industry faces additional challenges from the Medicareprescription-drug benefit—Part D, rolled out in

January 2006—which was designed to control costs

for plan beneficiaries.

Big Pharma’s Frustrations

More and more people are taking more and more

drugs. Unhappy with prices that can run upward of

$175 per month for a single prescription, many U.S.patients are turning to Canada and other countries,

which sell comparable drugs for less. But such imports

are illegal in the U.S.—and, according to the Food and

Drug Administration, unsafe.Te pharma companies hate this trend because

their profits suffer if people can buy cheaper drugs

elsewhere. o fight it, Pfizer, for one, has shut off

supplies to Canadian drug retailers that continue to

export prescription drugs to the U.S. Meanwhile, a

number of states have gone after big pharma on behalf

of their citizens.

Drug sales will grow 8 to 8.4 percent annually

through 2015, according to the Centers for

Medicare and Medicaid Services. A 2007 study by

PricewaterhouseCoopers predicts that the global

pharmaceutical market will double to $1.3 trillion by

2020. Great news for big pharma, right?

Surprisingly, these numbers won’t benefit the major

players much. Te reason? Patients overwhelmingly

will be switching to generic drugs to save as much as

80 percent off the cost of brand-name medications.

During the next five years, $100 billion worth of drug

patents will expire.

Still More Ethical and Legal Concerns

Te biotech industry gets inundated with wave

after wave of bad press. Environmental proponentshave gathered evidence to support their claims that

biotechnologically produced foods are unsafe, and

their protests are growing louder.

Meanwhile, drug companies have come under fire

for some of their clinical trial practices. Many drug

companies test their products in poor countries, where

it’s easier and cheaper to recruit trial participants. Te

big question critics have is, what happens when thetests are over and the products are deemed safe for

mass consumption? Should drugmakers be allowed to

cut off the supply? For big pharma, marketing drugs in

nations where few can afford them is a money-losing

proposition

HOW IT BREAKS DOWN

PharmaceuticalsTe U.S. is where most of big pharma’s multinational

giants are headquartered, although several are based


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in France, Germany, and Switzerland. Tose in the

U.S. lie east of the Mississippi, with the greatestconcentration in New Jersey.

Big-pharma companies come in two styles:

diversified and nondiversified. Diversified companies,

which include Abbott Laboratories, Johnson

& Johnson, and Wyeth, maintain other health

care–related businesses, such as consumer health–

product divisions and medical-device companies.

Nondiversified enterprises, including Eli Lilly and

Merck, focus solely on the development and sale of

drugs.

Since the turn of the century, some diversified

companies have chosen to divest their nonpharma

concerns in favor of the leaner and more profitable

drug business. Bristol-Myers Squibb, for instance, sold

Clairol, the leading U.S. hair-products company, to

Procter & Gamble in 2001.

Biotech

For all the success of giants like Amgen and

Genentech, most biotech shops are still small enough

for people to know everyone else’s name. Few are

generating revenue, let alone profit.

But a growing number of companies are joiningthe elite group of biotech businesses that have

FDA-approved drugs on the market. Once a biotech

company has a product coming to market, its jobs

expand from the primarily science-focused to include

engineering, manufacturing, marketing, and sales. Although significantly smaller than pharma,

biotech is a vibrant industry. Roughly 200,000

employees work for some 1,500 U.S. biotech

companies, more than 300 of which are publicly held.

According to Ernst & Young’s 21st annual report

on the biotech sector, revenue for public companies

increased to more than $70 billion worldwide in 2006,

up more than $7 billion from the previous year. Net

income losses fell 37 percent in Europe and 44 percent

in Canada. Net losses likely would have fallen in the

U.S. as well had it not been for one-time transactional

charges in a record year of deal making, with alliances

involving U.S. biotech companies increasing to $23

billion.

Biotech companies tend to be located in

geographical clusters, often near prominent research

universities. Te largest concentration of biotech

companies is in California (mainly in and around

San Diego and the San Francisco Bay Area), followed

closely by Massachusetts. You’ll also find pockets in

such far-flung regions as Washington, D.C.; Raleigh-

Durham, North Carolina; and Boulder, Colorado.

And biotech is increasingly international, with morecompanies opening in Europe and Asia.

KEY JOBS A note about salaries: At large pharmaceutical

companies, people in management positions earn

significant bonuses in cash and stock options. At

many biotech companies, all employees receive stock

options, which can be lucrative if the business does well. Tese bonuses aren’t reflected in the salary ranges

below.

Lab Tech

Lab techs perform routine tasks such as cleaning and

maintaining glassware, working with animal colonies,

and operating lab equipment. Often, a high school

diploma is all it takes to land such a position, butmany people with college degrees start here as well.


Culturally, biotech companies

usually have growing pains asthey move from R&D to com-mercialization. But they’relikely to remain much leanerand flatter than big-pharma

enterprises.


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Research Associate

Associates work at the bench, conducting experimentsunder the guidance of PhD scientists. If you have lab

experience and like R&D, this is the job for you. A

BS or MS in some form of chemistry or biology is

required.


Research Scientist

After receiving a PhD and completing a postdoc,

a scientist can get a job as a research scientist

(sometimes, the initial title is associate scientist).

Te position involves designing and conducting

experiments, as well as publishing results when

appropriate.

Salary range: $68,000 to $112,000

Chemical Engineer

Chemical engineers are the bridge between hard

science and manufacturing. Tey design, operate,

and oversee the production of chemical products.

Experts in both chemistry and engineering, they

translate processes that were developed in the lab into

practical manufacturing applications. A BS in chemical

engineering is usually required to enter the field.Companies place a strong emphasis on course work in

computers, math, and physics.


Manufacturing Engineer

Manufacturing engineers are responsible fordeveloping, implementing, and maintaining

methods, operation sequences, and processes in drug

manufacturing. Tey estimate manufacturing costs,

determine time standards, and recommend process

requirements for new or existing product lines. In

addition, they may maintain records and reporting

systems to coordinate manufacturing operations.

Manufacturing engineers usually hold a BS in

electrical, manufacturing, or mechanical engineering.


Process Engineer

Process engineers work with chemical and

manufacturing engineers during the development

process to make sure that a given drug can be

manufactured effectively from both a technical

and financial standpoint. Te job involves a good

deal of paperwork and administration, since

process engineering requires coordination and

communication. o qualify for the position, applicants

usually need a BS or MS in electrical or mechanical

engineering.


Programmer/Analyst

Tis position covers many different jobs. But basically,

programmers/analysts are computer people. Tere’s no

getting around complex database work, particularly for

clinical trials, which can involve thousands of patients

(sometimes in several countries) with elaborate medical

histories and completely different responses to each ofthe drugs and placebos tested. And the computational

demands of post-genomic research are enormous,

creating demand for job seekers who have backgrounds

combining science with computers.

Salary range: $47,000 to $101,000

JOB PROSPECTS

According to the Bureau of Labor Statistics,employment in biotech and pharma will increase 24

percent by 2014, making it one of the fastest-growing

Biotech R&D will continue togrow as companies seek youngminds who can lead the wayin combating diseases throughgene therapies.


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Key Pharmaceutical Companies

Company2006 Revenue

($M)

1-Yr.

Change

(%)

Employees

Johnson &

Johnson (1)53,324 5.6 122,000

Pfizer 48,371 –5.7 98,000

GlaxoSmithKline (2) 45,479 7.2 101,802

Sanofi-Aventis (2) 38,934 15.3 100,289

Novartis (2) 36,749 13.0 100,735

Roche (1, 2) 34,465 27.7 74,372

AstraZeneca (2) 26,475 10.6 66,000

Merck 22,636 2.8 60,000

Abbott

Laboratories22,476 0.6 66,663

Bristol-Myers

Squibb17,914 –6.7 43,000

(1) Highly diversified company; figures include departments that operate inother industries

(2) Foreign company; figures reflect worldwide sales and employmentSources: Hoover’s; WetFeet analysis

manufacturing sectors. As long as people keep getting

sick, the industry will continue developing drugs andtreatments.

In demand are people with scientific backgrounds,

particularly those with the rare combination of science

and computer skills required for the mushrooming

field of bioinformatics. Tere’s also a need for those

who combine scientific training with managerial

ability.

Tose entering this field enjoy the satisfaction of

knowing they’re developing treatments that could

make a radical difference in the lives of thousands,

even millions, of people.

Key Biotech Companies

Company2006 Revenue

($M)

1-Yr.

Change

(%)

Employees

Amgen 14,268 14.8 20,100

Genentech 9,284 40.0 10,533

Genzyme 3,187 16.5 9,000

Gilead Sciences 3,026 49.2 2,515

Biogen Idec 2,683 10.8 3,750

Merck Serono (1, 3) 2,586 5.2 4,826

Applera (2) 1,949 7.0 5,090

MedImmune 1,277 2.6 2,538

Invitrogen 1,264 5.4 4,835

(1) Foreign company; figures reflect worldwide sales and employment(2) 2007 figures(3) 2005 figures

Sources: Hoover’s; company annual reports; WetFeet analysis

ADDITIONAL RESOURCESBioSpace (www.biospace.com)Biotechnology Industry Organization (www.bio.org)

BioSpace (www.biospace.com)

MedZilla (www.medzilla.com)

Pharmaceutical Online

(www.pharmaceuticalonline.com)

Te Pharmaceutical Research and Manufacturers of

America (www.phrma.org)

PharmaLive (www.medadnews.com)


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COMPUTERHARDWARE

INDUSTRY OVERVIEWComputer hardware means computers with their

central processing units (CPUs), memory, and

storage—in other words, the machines that run an

operating system and application software—and their

attached peripherals (keyboards, mice, printers, and

so on). Also included in our definition are the servers,

electronic security, and storage devices of corporate

data centers.

Computer hardware and software are useless

without each other. Working together, however, they

store, modify, and exchange data in words, pictures,

and numbers—everything from correspondence to

news photos; drawings of jet aircraft to shipping

manifests; news releases to financial reports; census

statistics to stock quotes; maps to email.

Te competition among computer hardware

companies is particularly intense. In the traditional PC

market, hardware makers face downward price pressure

and narrowing profit margins. Meanwhile, the race is

on to develop innovative products, such as tablet PCs

and ultraminimal desktops. If a company falters, it

instantly becomes a takeover target. No doubt about

it: Computer hardware is a cutthroat business.

Despite its worldwide reach, the hardware industry

has definite geographic concentrations. High-tech

companies tend to be located near major colleges

and universities; many owe their very existenceto research at those learning institutions. Silicon

Valley isn’t far from San Jose State, the University of

California at Berkeley, and Stanford University. Route

128 is close to the educational mecca of Cambridge,

Massachusetts. Research riangle in North Carolina

and the area around Austin, exas, are two more good

examples.

Most major computer hardware corporations reachacross national borders. International sales normally

account for a large percentage of most hardware

companies’ bottom lines, and China, India, Japan,

and other Asian countries are hotbeds of hardwaremanufacturing and design.

TRENDSSmaller and Smaller

As advancing technology makes it cost-effective to

produce more complex chips in increasingly compact

sizes, computer hardware makers can bring smaller

and smaller devices to market. Tink flat computer

display screens. Tink ever-thinner, ever-lighter laptop

computers. And so on.

New Gaming Platforms

Gaming hardware companies are constantly looking

to improve their gaming consoles. Te latest consoles

feature high-def graphics, speedy performance, and

enhanced audio. At the time of its launch, Microsoft’s

Xbox 360, which came out in late 2005, was the most

advanced console on the market. However, Sony’s

PlayStation 3 console, which was released in 2006,

is technically more advanced—not to mention more

costly. Nintendo’s Wii console, also released in 2006,

is less powerful than the Sony and Microsoft console

offerings. But it’s garnered its share of marketplace

buzz because of its motion-sensitive controller.

Convergence

Is it a DVD player? A stereo system? A photo

scrapbook? A film-editing station? A telephone? No,

it’s today’s PC or laptop.

Tese days, personal computers are able to do more

and more. Tis means plenty of work for computerhardware professionals, as they make products with

new, more varied capabilities. On the other hand,

it also means new sources of competition, such as

telecom companies producing newfangled cell phones

that let users watch videos and surf the Internet, and

consumer electronics companies producing personal

entertainment systems.


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Outsourcing

In the hardware world as elsewhere in business, anincreasing number of manufacturers are outsourcing

work overseas. Some companies are doing only

top-level design in the U.S., leaving production and

more basic design tasks to cheaper labor in China, the

Philippines, and other foreign countries. Tis means

that product managers and project heads may have to

travel a lot more than in previous generations; it also

means that many North American jobs are being lost.Increasingly, the task of U.S. computer companies is to

be expert in marketing and distribution while simply

outsourcing manufacturing and portions of the design

work.

Consolidation

Industry consolidation makes sense as computers

become familiar products that require fewer different

design and manufacturing approaches. Te idea is to

let a few giant companies manufacture more units at

lower cost while sharing marketing and distribution

expenses across a larger organization.

Linux

Tis cheap, open-source operating system software

(Linux code is available for free on the Web) has moved

into the mainstream. Wishing to lower costs, business

users of many stripes are looking to Linux as an

alternative to more expensive operating systems such as

Windows and Unix. At the same time, Intel has begun

to optimize its chips for Linux in addition to Windows.

Tis means the PC and server products containing

those chips—from hardware manufacturers such asDell, Hewlett-Packard, and IBM—can handle Linux.

HOW IT BREAKS DOWNFor job seekers, one way to segment the industry is by

the type of computer hardware the company produces.

Other differentiating factors include industry

and application focus and sales-and-distribution

methodology: mail order, Internet, or retail.

PCs (Desktops and Laptops)

Te PC market is perhaps the most visible segmentof the high-tech hardware market, with computers

becoming ubiquitous at work, home, labs, and school.

Many of the desktop and portable computers made

by the established players—such as Apple, Dell, and

Hewlett-Packard—are powerful enough to replace

high-end specialized workstations and may be used for

3D rendering, molecular modeling, computer-aided

design (CAD), and video editing. Portable computersrepresent a growing share of the PC market.

Peripherals

A peripheral is usually understood to mean an external

product added to a computer, such as a new mouse,

speaker set, or flash drive (think manufacturers like

Kensington, Keyronic, and Logitech). Te term

extends to monitors, scanners, and printers. However,

a peripheral can also be something added into a

computer, such as a higher-performing video or sound

card.

Servers

Tere are many types of servers—those boxes that,

among other things, hold the Internet together. In

addition to Web servers, which relay all the HML

and image files that end up on your screen, there

are LAN and WAN servers, file servers, mail servers,

database servers, and more. Whenever two computers

(termed clients in this context) connect over a network,a server is involved.

KEY JOBSJunior EngineerTose in this entry-level role are the foot soldiers of

engineering. As a junior engineer, you’re not so much

coming up with ideas as implementing solutions

developed by your superiors. Still, the job is an

important first rung to a more specialized, higher-

paying engineering position. Duties may include

software programming, which involves writing thecode built into the hardware system.



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Engineer

Te middle ground between junior engineer andsystem architect, this position encompasses 95 percent

of the engineering workforce.


Systems Engineer

Tis position typically is filled by an engineer who

combines technical expertise with strong people skills. A

systems engineer, who must know the technology insideout, assists the sales staff in managing the relationship

with the potential buyer. An SE may be paired with an

individual salesperson or with an entire sales team.

Salary range: $75,000 to $105,000


Te technical support staff fields the never-ending

barrage of questions from businesses or consumers

who recently purchased a product. With computer

companies trying to use top-flight customer service

to separate themselves from the pack, tech support

positions are becoming increasingly important.

Although a technical background helps in this role, it’s

not a prerequisite. Patience and the ability to soothe

the confused and frustrated matter far more.


Technical Writer

A technical writer is responsible for translating

technical concepts into readable prose for user manuals

and other types of documentation. echnical writers

need the ability to explain a complicated subject in

clear, concise language that all readers will understand.Tis is a good choice for you if you’re a stickler for

details who possesses excellent organizational skills.


JOB PROSPECTS Although this isn’t the most robust economic sector

at the moment, it still presents a fair number of

opportunities for engineers, especially those withtechnical expertise and a computer science or

computer engineering degree.

Te Bureau of Labor Statistics projects that

the U.S. job creation in this sector will lag behindoverall job growth through 2014. You can thank the

increasing automation of manufacturing processes,

as well as the migration of production jobs overseas.

Still, this is a large industry, and there will always be

business and tech jobs available for people at the top of

their game.

ADDITIONAL RESOURCES Association for Computing Machinery (www.acm.org)

Computer & Communications Industry Association

(www.ccianet.org)

Information echnology Association of America

(www.itaa.org)

Virtual Institute of Information (www.vii.org)

Key Computer Hardware Manufacturers

Company2006 Revenue

($M)

1-Yr.

Change

(%)

Employees

Hewlett-Packard (1) 91,658 5.7 156,000

IBM (1) 91,424 0.3 355,766

Hitachi (1, 2, 3) 87,107 8.3 306,876

Sony (1, 2, 3) 70,513 11.0 158,500 (4)

Dell 55,908 13.6 66,100

Toshiba (1, 3) 53,945 –0.6 172,000

Fujitsu (1, 3) 40,746 –8.0 158,491

NEC (4) 39,266 –5.1 154,786

Canon (1, 3) 34,917 9.4 118,499

Cisco Systems 28,484 14.9 49,926

(1) Highly diversified company; figures include departments thatoperate in other industries

(2)

2007 fiscal year(3) Foreign company; figures reflect worldwide sales and employment

(4) 2005 figuresSources: Hoover’s; WetFeet analysis


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COMPUTERSOFTWARE

INDUSTRY OVERVIEW Although only a few decades old, the computer

software industry has a storied past. We’ve all heard

the tales of iconoclastic young entrepreneurs who

started companies in their garages and went on tobecome some of world’s richest and most powerful

businesspeople. Indeed, the names of Bill Gates and

Steve Jobs are better known in many circles than those

of the latest pop music stars.

oday, programming’s adventurous and maverick past

is still alive. Troughout Silicon Valley, as well as in other

tech hotspots like Boston and Austin, visionary software

developers are trying to create the next killer app.

Computer software products accomplish discrete

tasks and are sold as complete packages. Categories

include operating systems such as Windows and

Linux, applications like word processors and Web

browsers, and utilities such as antivirus programs and

pop-up blockers.

Most software purchases are made by businesses

seeking better tools to run operations, keep records,

and monitor cash flow. It’s not always the quality of

the code that determines the most successful software,

but how well that software meets a business need.

Probably the quickest way to talk yourself out of a job

in this segment is to make the technology seem more

important than the end user.

TRENDSMultiplying Platforms

Each year brings new devices that need software to tell

them how to operate. Such products include global

positioning systems, cell phones, personal digital

assistants, and so-called smart household appliances.

Wireless networking technologies add to the

demand. Te result? Plenty of work for good softwaredevelopers.

Shipping Jobs Overseas

Dampening the job outlook is the trend amongsoftware developers to outsource work to cheaper labor

overseas. For instance, India has a large population

of educated, tech-savvy folks willing to work for a

fraction of what passes for an acceptable salary in the

U.S. Other outsourcing hotspots exist in Russia and

the Asia-Pacific region. In general, most exported tech

jobs have been at the lower levels; however, there’s a

trend toward sending more skilled tech jobs overseas.Still, at least for the time being, if you’re good at what

you do, the explosion in software development should

create plenty of job opportunities for you in the U.S.

Software as Service

raditionally, software has been sold in a box or

downloaded for installation on a particular computer.

oday, software is increasingly sold as a service: Te

software is hosted on the vendor’s server and provided

to users who access it over the Internet for a periodic

subscription fee. Software companies of all kinds,

even those that make word processing and spreadsheet

programs, are experimenting with this model. One of

its advantages is that improvements can be made to

existing software programs on an ongoing basis; if there’s

a bug, the vendor can fix it immediately instead of

making users wait for the next official product upgrade.

Open Source

Linux system software is finally making a splash in the

business world. It’s the centerpiece of the open-source

movement, which champions free software for all and

encourages developer contributions. An increasingnumber of companies, including Credit Suisse and

Merrill Lynch, are adopting Linux to avoid the cost

of software licenses and upgrades. What’s more, many

organizations and even countries feel that Linux

adoption is a way to curb Microsoft’s monopolistic

power. Computer makers such as Dell and Hewlett-

Packard have responded by shipping PCs and servers

loaded with Linux. And big business-softwareproviders such as BEA Systems, SAP, and Veritas have

made products that run on Linux.

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Gaming

Americans now spend more money on video gamesthan movie theater tickets. Business is booming for

video game giant Electronic Arts, which cracked the

$3 billion revenue threshold in 2005. Lots of other

players in this space are making a pretty penny as well.

Meanwhile, sales of professional animation software,

which can cost thousands of dollars, continue to

climb. And burgeoning demand for gaming software

on cell phones and other non-computer platforms hasgiven a further boost to this sector. Creative types who

want to apply their talents to making games can find

plenty of opportunities with companies that design

entertainment software.

HOW IT BREAKS DOWNTe computer software market is most commonly

segmented according to the type of work a product

does. Several of the major market segments are listed

below, along with the names of a few companies that

are active in each.

System Software

Although Microsoft Windows is by far the dominant

example in this category, it’s not the only one. Apple’s

Mac OS X is still alive and well, while Linux is gaining

a reputation as a reliable alternative in business

settings. Red Hat has actually made a business out

of packaging and providing support for a version of

Linux, which itself is available free on the Internet.

Productivity

Productivity software includes word processing,spreadsheets, presentations, database management,

graphic design, and other applications that help people

do their jobs. Key players are Adobe (Photoshop,

Illustrator, InDesign), Microsoft (Word, PowerPoint,

Excel), and Autodesk (CAD applications).

Enterprise

Tis term denotes the large, expensive softwarepackages sold by the likes of IBM, Oracle, and SAP to

keep corporate users’ global operations humming. It

also refers to niche software packages sold by smaller,

specialized players.

Education

Educational software includes products that can help

your kids read, teach you a foreign language, and

stimulate logical thinking. Tis category also offers

children’s educational games, the as-yet slow-to-catch-

on electronic book industry, teaching resources, and

music instruction. Disney, Microsoft, and Scholasticare among the key players.

Gaming

A highly competitive and extremely broad market

segment, this includes role-playing games, driving and

flight simulation, sports, strategy games such as chess,

and children’s games. Several key players are Activision,

Electronic Arts, ake-wo, and HQ.

Many small, thriving studios use the bigger players for

distribution and marketing. Moreover, big-name individual

designers work for game companies on a project basis.

KEY JOBSSoftware Engineer

Software engineers are programmers who write the

code that makes the software products run. asks

include implementing and debugging the software.

Senior software engineers do some of these same

things but also make higher-level design decisions. o

obtain a position, applicants typically need a computer

science degree or equivalent programming experience.

Salary range: $45,000 to $105,000

Product Specialist

As a product specialist, you master a specific area within

the software development process and attend to relevant

projects. For instance, you might take on the area of

customer service and help develop customer service

procedures for titles published by your company. Tis

is a common starting point for recent college grads who

want to break into the software world.Salary range: $40,000 to $75,000


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User Interface (or Experience) Designer/

Content EngineerTis role has several titles and in the past was often

shared by the project manager, senior programmers,

and others on the development team. But now there’s

often one person in charge of the user experience and

logic flow—how all the text, graphics, sound, and

other information fit together.

Like a magazine with a very good art director, well-

designed content feels natural and inviting. Softwarecompanies are increasingly willing to spend time and

money finding just the right writer/artist/interface

expert with significant technical experience for this

slot.



ech support people staff the phones and answer

questions from consumers who recently purchased the

product. If you don’t have a tech background, this is a

great way to break into the industry, and recent college

grads from various backgrounds (and with excellent

people skills) can do well in this area.


Technical Writer

If you have a strong writing background and an

aptitude for technology, this could be the job for you.

Computer science majors with a flair for writing might

also take a look at this position. echnical writers

produce materials that support the software products,

such as product documentation and marketing white

papers.


Software Architect or Designer

Tis senior-level position requires someone with

a comprehensive grasp of software design and an

understanding of industry trends. Software architects

make key decisions about how to put products

together; they also oversee a vast array of titles and alarge staff.

Salary range: $90,000 to $125,000

JOB PROSPECTS

Now that software development can be outsourced tomany politically stable, English-proficient countries

with advanced communications infrastructures, the

expanded supply of technically skilled (and low-cost)

workers has blunted demand. Still, don’t underestimate

the power of the local: It’s hard to collaborate

efficiently with workers many thousands of miles

away. Many software projects will stay in this country,

especially those with tight deadlines, rapidly changingrequirements, and applications specific to U.S.

regulations and culture. ake heart from the Bureau of

Labor Statistics, which predicts that occupations in the

computer software industry will be some of the fastest-

growing through 2014.

Much of the activity in computer software is

happening in Silicon Valley, but you might want to

check out opportunities in other high-tech regions,

including Atlanta, Austin, Boca Raton, Boston, Dallas,

Denver, Minneapolis, New York, and the Research

riangle area of North Carolina.

Of course, it takes more than technical talent to

build a successful software business. Sales, marketing,

and customer service provide many jobs for those who

prefer thinking and talking about software to actually

creating it. On the technical side, high-level software

architecture skills are likely to become more valuable as

the nuts and bolts of software projects are outsourced

overseas.

ADDITIONAL RESOURCESThe Software & Information Industry Association

(www.softwarecenter.cmu.edu)

National Association of Software & Service

Companies (www.nasscom.in)

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CONSULTING

So you’re about to graduate, and you think you want to be a management consultant. Or, more likely,

you think you’ll spend a few years as a consultant

and then move on to other things. You’re not alone.

Consulting firms are traditionally among the largest

employers of candidates from top undergraduate and

graduate engineering programs. Competition for jobs

is stiff every year.

More than half the people in top universities flirt

with the idea of becoming a management consultant.

It’s a high-paying, high-profile field that offers studentsthe opportunity to assume a lot of responsibility right

out of school.

In essence, consultants are hired advisers to

companies. Tey tackle a wide variety of businessproblems and provide solutions for their clients.

Depending on the size and strategy of the client, these

problems can be as straightforward as researching a

new market, or as complex as rethinking the client’s

organization. No matter what the engagement,

management consultants wield a great deal of power.

Tey can advise a client to acquire a related company

worth hundreds of millions of dollars, or to reduce thesize of its workforce by thousands of employees.

One word of clarification: Consulting is a big, one-size-fits-all term that includes virtually any form of

advice-giving. Tis industry profile focuses primarily

on management consulting. Often called strategyconsulting , this industry segment includes firms thatspecialize in providing advice about strategic and

core operational issues. Although some of the world’shighest-profile firms populate this segment, they’re not

the only ones doing consulting.

TRENDSIT Is It

By far the fastest-growing industry sector is

information technology consulting. Tis broad

segment covers e-commerce, telecommunications,

intranet and Internet strategies, hardware and software

systems design and implementation, and website

design and operation. Companies of all sizes and

industries are looking to I consultants for help in

choosing, acquiring, implementing, and maintaining a

vast array of new technologies.

Spending on I consulting is rising in a big way

as companies look to technology to cut costs and

drive growth. According to Plunkett Research, I

and systems consulting revenue accounts for 60 to

70 percent of the consulting market. Companies are

also seeking better ways to manage vast amounts of

customer and business data, not to mention strategies

to keep that information safe and secure.

Public Sector Dollars

After 9/11, a number of firms, including Accenture,

Key Computer Software Companies

Company2006 Revenue

($M)

1-Yr.

Change

(%)

Employees

Microsoft (1) 44,282 11.3 71,000

IBM Software 18,204 8.2 N/A

Oracle(2)

17,996 25.1 56,133

SAP (3) 12,408 23.1 39,355

Automatic Data

Processing8,882 4.5 46,000

Symantec (2) 5,199 25.5 17,100

Sega Sammy

Holdings (3)4,705 –1.9 6,416

Fiserv 4,544 11.9 23,000

SunGard Data

Systems4,323 8.0 16,600

CA (2) 3,943 3.9 14,500

1) Highly diversified company; figures include departmentsthat operate in other industries

(2) 2007 figures(3) Foreign company; figures reflect worldwide sales and employment

Sources: Hoover’s; WetFeet analysis


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American Management Systems, BearingPoint, EDS,

IBM Global Services, and Perot Systems rushed tooffer homeland security consulting. Government

entities at the local, state, and federal levels are shelling

out big bucks for I, security, and HR consulting

services. In 2005, Booz Allen Hamilton ranked ninth

among Washington echnology ’s “op 100 FederalContractors,” earning more than $1.7 billion in federal

contracts.

The Challenge to Outsourcing

Of the trends affecting the consulting business,

the shift toward outsourcing is perhaps the most

significant. Outsourcing noncore operations lets

companies of all sizes focus on their business. Tis

trend represents the biggest growth opportunity for

business-services firms. Already a $300 billion market

by Gartner’s estimates, outsourcing is expected to pickup even more momentum in the next few years.

While outsourcing has been one of the greatest

revenue builders for many I firms like Accenture, a

number of India-based firms, such as Infosys and ata

Consultancy Services, are now major players. Tey can

charge $30 an hour versus the $150 that Accenture or

IBM Global Services would bill.

o counter their overseas rivals, some consulting

firms are throwing in hardware and other consulting

services to sweeten their bids. Still, it often isn’t

enough: Indian firms have advantages in both cost and

quality.

Expect North American firms to keep acquiring

Indian firms. Tat’s what IBM did in 2004 with

Daksh eServices, one of the world’s largest call-center

operations.

Competition from Computer Companies

Computer hardware and software firms continue to

elbow their way into consulting through business

process outsourcing. Tat’s when service firms take

over management of noncore business functions, such

as purchasing and accounts payable. Web applications

have made it increasingly easy to outsource this workand to manage it remotely. Tis trend began with IBM

Global Services, which now earns more than half its

$91 billion in annual revenue from consulting services.

Dell, Hewlett-Packard, Oracle, and SAP are a few of

the hardware and software firms following Big Blue’s

lead by beefing up their consulting services.

HOW IT BREAKS DOWNTese days, it seems like just about everybody and her

brother is a consultant. “Hold on,” you say. “How can

Aunt Suzie be doing the same thing as those blue suits

at the posh New York offices?” All of them may really

be consultants, but you can bet they’re not all doing

the same thing. Just as there are many different sorts

of doctors, there are consultants with all manner of

expertise and specialty.

o help you get a better handle on the options,

we’ve categorized consulting firms by segment. But be

aware that firms in one group compete directly with

players in other segments.

Industry Elite

Tis group has a few top strategy firms and a host of

smaller challengers. Its members primarily provide

strategic or operational advice to top executives in

Fortune 500 companies. For this, they charge thehighest fees and enjoy the most prestige. Tey also

have the fattest attitudes, work the most intense hours,

and take home the most pay. Representative firms

include A.. Kearney, Bain & Company, Booz Allen

Hamilton, Te Boston Consulting Group, Deloitte,and McKinsey & Company.

Companies will increasinglyturn to consulting firms tomanage their outsourcingefforts.



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Boutique Strategy Firms

Some firms specialize along industry or functionallines. Although often smaller than their elite

counterparts, they’re highly regarded for their

operations and strategy work. Representative firms

include Cornerstone Research (litigation support),

Gartner (high-tech research), and PRM (high-tech

operations).

Technology and Systems Consulting FirmsFirms here typically take on large projects to design,

implement, and manage their clients’ information

and computer systems. echnology consulting often

occurs in the bowels of the client organization. In

general, this kind of consulting job requires large

teams of people who actually do the computer work.

As a result, there are usually more opportunities for

people from undergraduate or technical backgroundsthan for those with MBAs. On the downside, the

work is less prestigious than what you’ll find at strategy

consulting firms. Members of this group include

Accenture, BearingPoint, Capgemini, Computer

Sciences Corporation, EDS, HP echnology Solutions

Group, IBM Global Services, Novell, Oracle, SAP, and

Synopsys.

Human Resources Consulting

Tis can include designing an employee evaluation

and compensation system, conducting organizational

effectiveness training, and helping an organization

through a merger or other significant change event.

HR consultants often work as long and travel as

much as their counterparts in general management

consulting. Representative firms include Accenture

(Change Management Group), Buck Consultants, Hay

Group, Hewitt Associates, Mercer Human Resource

Consulting, owers Perrin, and Watson Wyatt.

KEY JOBSRoles basically boil down to analyst (research associate

or staff consultant at some firms), consultant (or seniorconsultant), manager, and partner or VP. While MBAs

typically dominate, consulting firms are increasingly

hiring people with technical and engineering expertise

as projects grow more complex. A note about salaries: In the consulting world,

signing and year-end bonuses are common and often

large. Tese figures vary widely and aren’t reflected in

the salary ranges listed below.

Analyst/Research Associate/

Staff Consultant

Tis is the position at the bottom of the professionalpyramid, held mostly by young, talented, and hungry

college graduates. Many firms structure this position

to last two to three years, after which the analyst is

expected to move on—perhaps to graduate school

or another employer. However, others let employees

progress up the management ladder without ever

leaving.

Te workload can be demanding. It often includesfield research, data analysis, customer and competitor

interviews, and client meetings. In I, analysts may do

heavy-duty programming.


Associate/Consultant/Senior Consultant

Te typical port of entry for newly minted MBAs,

this position is increasingly opening up to non-

MBA graduate students as well. Senior consultants

often perform research and analysis, formulate

recommendations, and present findings to the client.

At many firms, they have to implement those great

ideas, too.

Although this is usually a tenure-track role, a fair

number of consultants will leave the business after two

or three years to pursue entrepreneurial or industry

positions.

Salary range: $70,000 to $130,000

Manager

After a few years, a senior consultant will move up

to manager. As the title implies, this usually means

leading a team of consultants and analysts towardproject completion. Some firms may hire MBAs with

significant work experience directly into the manager


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position, particularly in their I practices. In addition

to overseeing the project team, the manager willtypically be the point person for client interactions.

Salary range: $70,000 to $150,000

Partner or VP

Congratulations! You’ve forded the River Jordan of

consulting and arrived at the Promised Land. Note

that some firms further subdivide partners into junior

and senior grade. And if you aspire to it, there’s alwaysthat chairman or CEO position.

As a partner, one of your big responsibilities will be

to sell new work. Fortunately, as with other big-ticket

sales jobs, the pay can be rewarding.

Salary range: $250,000 to several million dollars at

leading firms

JOB PROSPECTS When the economy hit a wall in 2000, the consulting

industry crashed hard, too. But fear not: Lately, the

sector has enjoyed steady, solid growth. According

to Consultants News , revenue at the largest firmsgrew more than 15 percent from 2002 to 2005, the

biggest three-year jump since the ’80s. Several firms

are privately held and don’t release their sales figures

annually, but a number of firms continued their strong

growth in 2006.

Te Bureau of Labor Statistics projects that the

industry will grow 60 percent by 2014. In fact,

consulting is the fifth fastest-growing industry.

Demand will be highest for technical and global

expertise. In years to come, knowledge of the

complexities of business processes will be particularly

attractive to hiring managers.

What does this mean for job seekers? Te industry

growth rate will certainly mean more jobs, but

competition will remain stiff. Consulting is one of the

sexiest industries for recent grads, who are drawn by the

prestige and high salaries. However, you may have an

edge: Te training and course work typical

Documents

Industries and Careers for Engineers