sometimes yes, sometimes no. i know just as many people who've gotten jobs/contracts/etc because they shook the right hands as people who've gotten jobs because of their technical excellence.

it can be hard to know which is which sometimes.

I agree, with a caveat. It depends on who it is knowing your technical ability, and what basis they have on which to judge that.

For instance, a secretary who has a friend who is "really good with computers" who submits her resume for a job as a DBA, and that friend gets hired on the basis of that recommendation -- yes, the friend was someone I knew. I guess you could say the friend earned the job based on the criteria put forward, but not on any basis that is good for her, the company, or the DBA profession as a whole.

It can also often be a ticket to bigger money because they'd rather pay someone they know and trust than take a risk with someone they don't.

yep i agree. it's not like you just got the job cuz your father owned the company or something outright nepotistic