Updated: 20 February, 2024

The current winds of the global economy haven’t left the Rocket unaffected, although bigger storms have passed us by. We’ve screwed our space helmets on even tighter, as the growth in the IT sector has slowed down. How is the market situation reflected in the daily life onboard the Rocket, and what measures have we taken to brace ourselves?

In the past year, several software houses in Finland have announced the start of change negotiations due to a declining demand for services. According to Tivi, Finland’s B2B media on IT, the situation could be described as a “return to normal” after a prolonged peak period. Kauppalehti writes that growth is slowing down in the entire IT sector, and the competition over coders that’s been going on for nearly 10 years has become a battle over finding assignments.

It's worth noting that Rakettitiede has enjoyed favourable market conditions practically for as long as it’s been operational.

“There has been a decrease in investments in the field,” says the Rocket’s CEO Juha Huttunen. While new investments are still being made, the pace has slowed down compared to previous years. The market situation is challenging but by no means stagnated – the industry continues to grow.

“We don’t want our growth to happen at any cost. Instead, we want to make smart choices that benefit our talents,” says the Rocket’s CEO Juha Huttunen and sets the company’s priorities straight: 1) current employees and their comfort, 2) steady growth and 3) profitability.

Think of the situation as a pause, where we catch our breath, regulate our heartbeats, gauge the mood and plan our next move.

With the decline in investments, people in the field, especially consultants, are faced with fewer work opportunities.

“Talented individuals now find themselves in a market that has fewer opportunities available, with clients being more careful about how to use developers’ and especially consultants’ time,” Juha says.

As the market currently has an abundance of talents, clients are able to get picky. “At the moment, clients may also be filling more permanent positions compered to before, meaning there’s no need to fix staff shortages using consultants,” says Tessi Reispakka, Growth Lead at the Rocket.

People working in the sector have also become more cautious. “Those who have a steady and secure job, are less likely to leave it now than, say, a year ago. The field has also developed a healthy criticism towards companies that are hiring. Talents are increasingly interested in the companies’ financial situation and long-term plans,” Tessi says.

The Rocket commander Juha has a clear opinion about the situation: “Despite the economic situation, our goal is still to genuinely be the best option for both our rocket scientists and our clients.”

What does that mean and how is the Rocket affected by the economic slowdown? Let’s find out.

The Rocket is still soaring – more slowly but very surely

Fret not. All things considered, the Rocket is still doing very well, with Juha tightly grabbing the wheel in the command centre. “"We achieved a 10% annual growth last year (2023), which is of course falls short of the 20% we had planned for initially. All the meters are still safely in the green, though” Juha says.

Juha admits the past year has caused him to sweat inside his space helmet. One thing that has required some thought is how to develop Rakettitiede as a company so that it can reach its growth targets in the future.

There are at least two reasons for how the Rocket has been able to maintain a steady pace in this market situation:

#1 Competent experts whose quality of work can be trusted

When things get tough, one thing stands out above the rest: the standard of expertise. And if there’s something the Rocket is known for, it’s quality.

One crucial element in the growth of the Rocket is its highly skilled software developers, who have what it takes to solve complex software-related problems. Their expertise serves as a convincing argument for the company’s clients year after year.

“The quality of work is something that really sells in this situation. The current market offers plenty of capacity, but the quality standards haven’t risen,” Juha says and continues: “Our consultants are experienced, skilled and, above all, productive, which the clients find important in the present market.”

#2 Assignments focused on the client’s product development

“Economic fluctuations have relatively little effect on product development. That reflects positively on our business,” Juha says. Adopting a long-term approach is essential in product development, especially when it comes to assignment durations and sales cycles.

The founders of the Rocket played it smart when outlining the direction of the company. Rakettitiede consultants are never assigned tasks at random. In addition, their recruitment is based on a comprehensive understanding of their role in Rakettitiede as a whole, rather than merely their utility for a specific client.

“We don’t want to end up in a situation where we need to lay people off because we’ve been greedy in hogging assignments without a plan for how we’re going employ our talents once the assignments are completed,” Juha says.

Careful skills assessment = happier consultant

If quality is what counts in the current market, have the Rocket’s recruitment criteria gone through the roof?

Not quite, although there have been some changes.

The consultants’ well-being at work affects us all, which is why we take it seriously. In the current economic situation, we won’t hire anyone to sit on the bench and get frustrated. “We will carefully look for an assignment and won’t make any promises before the consultant’s employment is guaranteed,” says Growth Lead Tessi Reispakka.

“Our competence criteria have remained the same but we now pay closer attention to versatility. We try to find out if the applicant is specialised in a particular topic or if they have a more varied skill set,” Tessi says and continues: “To me, it would feel irresponsible to opportunistically hire a consultant for one assignment without being confident that their skills will come in handy later on as well.”

Versatility – the range of abilities a consultant has – is really in demand at the moment. “At Rakettitiede, we don’t focus on specific technologies, so having a broad skill palette increases the chances of landing an assignment when the market is scarce,” Tessi explains.

The Rocket is yet to acquire a crystal ball for making predictions, but the talents’ future and potential for a happy career are subjected to a rigorous assessment. “We want to make sure that our consultants get a new project quickly once their previous assignment comes to an end. We want to hold on to the talented people we have,” Tessi says.

Ensuring that the employees possess the required skill level has proven effective. Rakettitiede’s employee turnover is 5%, which is low compared to the average figures in the tech industry (13% globally, 17% in Finland).

“We will carefully look for an assignment and won’t make any promises before the consultant’s employment is guaranteed.”

“Even if we’re prepared to bring on board a talented individual, we won’t hire them if it means they have to remain on the bench and get frustrated. We will carefully look for an assignment and won’t make any promises before the consultant’s employment is guaranteed,” Tessi says.

How does a consultant feel about what’s going on at the Rocket?

Sometimes the Rocket’s recruitment process may take a surprisingly long time before all parties are convinced that the moon suit fits like a glove and everyone is in for a happy future – despite the occasional economic downturn.

One good example of a long courting phase is the newcomer Nicoandres Rodriguez, full stack developer and rocket scientist #67, who was recruited by the Rocket in spring 2023. He first crossed paths with the Rocket towards the end of 2022.

“Rakettitiede made me consider leaving a product house and switching to consulting. I felt drawn to the opportunity to develop my expertise and the chance to influence my pay,” he says. Due to the global and economic situation, the first assignment was hard to come by. Nico decided to say yes to another job but, after a while, he noticed he wasn’t done with the idea of boarding the Rocket.

“This may sound like a sappy love story, but I felt my heart gravitating toward the Rocket”, he chuckles. Nico contacted the Rocket again, and this time suitable assignment came up after a couple of months.

“The Rocket crew gave me an honest assessment of my skill level and made sure that I was assigned a suitable job. I felt assured that once the gig was over, I would be very likely to get a new one.”

What convinced Nicoandres to switch to consulting?

“The Rocket crew gave me an honest assessment of my skill level and made sure that I was assigned a suitable job. I felt assured that once the gig was over, I would be very likely to get a new one,” he says. Six months on the job has taught him that a consultant will benefit from having strong resilience and mental fortitude.

Nicoandres Rodriguez used to work in a product house until courting the Rocket made him think about switching to consulting. He was drawn to consulting work on two accounts: the opportunity to develop his expertise and the chance to influence his pay.

Nicoandres says Juha’s weekly bulletins covering clients and industry news give him reassurance and trust in the future.

Recently the key message has been this: the market situation has no effect on the majority of rocket scientists. There are assignments available, but you need to remember to be proactive if you’re interested in new gigs or your current one’s coming to an end.

Nicoandres isn’t worried. “Rakettitiede gives me a sense of security,” he says smiling.

A bright light at the end of the tunnel

There’s growth in the pipeline, but no corporationalisation.

“We prioritise our current employees and their comfort, then steady growth, and finally profitability. We don’t want our growth to happen at any cost. Instead, we want to make smart choices that benefit our talents,” Juha says.

Tessi agrees and continues: “When making hiring decisions, we take our time to think about how we can guarantee a good life for our consultants, no matter what the market situation is. At the moment, people are justifiably concerned about getting assignments, and we are working hard to alleviate any fears about the future.”

The growth the Rocket is aiming for benefits everyone. “We want to be a noteworthy partner to our potential clients, so that we can offer growth opportunities to our people”, Juha summarises.

Turmoil in the IT sector – what does the Rocket?