IT Labor Shortage Is Just a Myth
buzzardsbay writes "For the past few years, we've heard a number of analysts and high-profile IT industry executives, Bill Gates and Craig Barrett among them, promoting the idea that there's an ever-present shortage of skilled IT workers to fill the industry's demand. But now there's growing evidence suggesting the "shortage" is simply a self-serving myth. "It seems like every three years you've got one group or another saying, the world is going to come to an end there is going to be a shortage and so on," says Vivek Wadhwa, a professor for Duke University's Master of Engineering Management Program and a former technology CEO himself. "This whole concept of shortages is bogus, it shows a lack of understanding of the labor pool in the USA.""
Raise your wages, the workers will come.
The market will fix the problem. No need for special legislation or guest workers.
I can't speak for the US, but I can state that in South Africa we have a fair number of IT workers, a handful of which are actually worth anything, but on the whole not a shortage. The area of the market that DOES have a shortage, however, and a really massive one at that, is the Tester and Test Analyst side. We are struggling to get even halfway decent people.
And even with this shortage, the IT academies and schools out there are churning out MCSE's by the truckfull - rather than getting useful skills, they are giving some poor schmuck a certification that means really little in the real world, and which doesn't really have a descent career path anymore..
Testers, on the other hand, have a great job, good money, and a really flexible career. They also develop a lot of really useful business skills to augment their technical skills, and have no problems finding work.
There is a shortage of *cheap* IT labor...
I can't stand those ComputerTraining.com ads on the radio that reinforce this myth. Find me one person that has a starting salary of 70k from their program.
So, yes it's a myth that there are not enough people to fill IT positions, there are lots of code monkeys willing to pound keys for their banana but what are the skilled IT people that these larger companies are looking for out of the box and where will we find them right now?
Ask not what you can do for your country. Ask what your country did to you
Over the course of last year I needed to hire 10 experienced J2EE developers. I literally interviewed hundreds, but was only able to find 6 suitable candidates. While it is true that there isn't a shortage of applicants, there is most certainly a shortage of people who can actually perform the advertised job.
Bob
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And I will second that, I am sure in other parts of the country, skilled IT are a dime a dozen. But where I am at (Midwest) actual skilled IT people are hard to find. Sure you can find the guy/girl who was promoted to IT from accounting back in the 90s but that doesn't make them a skilled pro. Show me a cross reference of IT folks who actually know what they are doing, have a passion for it, and I bet that subset is really small. I have no need for joe basement dweller who runs his guild website and knows how to install a video card. I also dont have any need for dilbert principle folks who are in waaaay over their heads and cannot configure a server without serious handholding or an in depth checklist.
CS: It is all sink or swim...oh and did I mention there are sharks in that water?
The IT labor "shortage" is a profit issue.
If you want news from today, you have to come back tomorrow.
When they talk about an "IT labor shortage", they are talking about how many people are willing to work for low wages and yet have a large pool of skills, talent and education.
There are plenty of people who have the skill sets they need, they just don't want to pay the kind of wages it takes to get them and keep them.
I am not talking about kids just out of college expecting a high paying job. I am talking about companies that want people with 10+ years worth of experience and want to pay them like a kid out of college.
It has been true for a very long time that the only way you can get a real pay increase in IT it to move somewhere else. Until companies start looking at their employees as a resource and not an expense and pay them accordingly, the situation will not improve.
All these cries to let them import labor is to allow them to rent temporary employees who can be deported at the first sign of "getting uppity" for demanding a living wage.
"Trademarks are the heraldry of the new feudalism."
We use some H1B's (and try to get them green cards).
We pay a "decent" salary-- my buds at HP earn roughly 10% more-- those in the oil field earn about 20% more (but have a history of frequent layoffs). We have solid benefits that exceed those of the oil field and HP.
The reality is- we are about to lose positions because we cannot even get under-qualified people to apply for them. Now part of it is that we require people with at least a couple other jobs experience under their belt. Part of it is that being a big corp, our bureaucracy is pretty harsh. I have a friend who was sucked into Schluberje (sp) recently and there you literally have to take a driving class (as a frikkin programmer???) as part of your job duties. Bureaucracy gone mad. I'm sure many of you have seen office space--- we are 3x office space. It really takes a special person to fit in a large corporation. Jobs that would take 2 hours at a small company (and be very satisfying) may take three months. I even know of one project that was finished a year ago and it is still stuck waiting to be prioritized for release.
Sarbanes Oxley takes all the joy out of being a programmer. It just sucks the life out of it. Coders like to code 32 hours a week-- not 32 hours per quarter. You can't even maintain your coding skills at those levels.
I think the IT Worker crunch IS coming- and it is going to be wicked nasty starting in about 2012.
She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
...if /. were only available at night?
and let the job market correct itself? We have these same issues in my field. If people were payed what they are worth we wouldn't have to import workers. I see these claims of shortages of workers in any field as simply industry's (quite successful) attempts to suppress wages for a long time to come, rather than be forced to pay the wage that the current supply-demand for that skill set dictates. Once society sees the adjusted pay grades, incoming students will adjust the supply accordingly. You don't honestly think everyone is getting a business degree because they perceive that those are the jobs most in demand. No, everyone does business degrees because the work-pay ratio is seen as being much better in that field than others. Imagine the responses of CEO's and CFO's if we showed that there was a shortage of skilled executives. Actually given the current state of affairs in some industries it seems there is certainly a shortage of skilled CEO's and CFO's. Now rather than pay the existing LARGE salaries and incentive packages, why don't we just import some Cheif Officers from outside the US.
Sure there may not be a shortage of IT resumes on monster... But there sure is a shortage of people who can back up their resumes with actual demonstrated work/skill.
We are offering market wage, and we are hiring entry level people, maybe 1 in 30 of the people we interview actually demonstrates the minimum of critical thinking and problem solving skills needed to be a decent software developer. Our interviews are not concentrated on any one platform, we have stuff in foxpro, java, python, php, c++ and c#... So our interviews are focused on critical thinking and problem solving. We have a couple basic problem solving questions and 2 algorithm questions which we routinely ask.. This is stuff I learned in high school, or my 2nd year algorithms class in college. People who are professing CS degrees and 0-5 years experience are routinely getting these questions wrong.
Even the few people we have hired over the last 3-6 months have been disappointing in their ability to a) learn new languages, b) learn and follow best practices, c) demonstrate real troubleshooting/bug fixing skills. C is probably my biggest pet peeve, as a manager I don't know how many times in the last 6 months I've had to go to a programmers system when they say "I'm getting this error and I don't know what it means" and the error message very clearly lays out the problem, the line it is occurring on, etc...
Either CS degrees are seriously lacking in rigor since I participated ~ 8 years ago, or they are just rubber stamping people that shouldn't be passing the classes.
I am a "highly experienced J2EE person" and as a contractor I sit for interviews once a year or so.
I am not disagreeing w/your experience, simply because I wasn't there.
My point is most hiring managers don't know how to interview and frequently don't even know what skills are relevant.
My interviews routinely turn into some sort of geek dick size war (and the candidate must be polite) or a beauty pagent (where did you go to university, my professors are more glamorous than yours) or some other stupid diversion rather than the job at hand.
My least favorite is: are you kewl enough to work in our clubhouse? It's just a job, I get all the love I want at home.
It doesn't help that most jobs are using API's they barely understand. So when someone asks me an obscure question about XML bindings or hibernate, they frequently don't recognize the answer.
Anyway, I'm a little tired of hearing about "the shortage" when in fact there is none. The "shortage" (IMO) is manufactured.
I had not read through all of these today but having survived 5+ years now of business only hiring temps and "independent contractors", I have a fair amount of knowledge in the area. Because of this "outsourcing" that many of us went through, our jobs were cut by moves in business to cut IT costs and improve profits for the shareholders, et al. This really is nothing more than devaluating the duties and tasks that we do to that of a high schooler working at a local Mickey-D's.
The real "shortage" comes about because business is NOT able to find someone willing to come in and be an all-purpose IT person, network guru, server admin., etc. and accept pay to the tune of $11 per hour. Thats the real shortage issue. So they will further outsource the jobs and bring in foreigners on H1B's to do those jobs at substantially reduced rates. IBM and a handful of other international companies are notorious for this.
Really what it will come down to is let these large companies hire the kids for $11. You really do get what you paid for. Eventually when things begin to collapse for many of these companies, they will be force to bring in people with knowledge and experience, and best of all; pay them what they're worth.
Remember that: "What goes around; comes around"
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I think that there is a bit of a distorted perception that there is always a shortage of IT labor, because no matter where you work, no matter how many people are in your staff, you'll believe that your department is understaffed and overworked. Have you ever heard an IT staff say "we have just the right amount of people for just the right amount of work?"
Many times in a 30 year IT career, I have seen Human Resources people who are clueless about technology writing ads that have qualifications that nobody could meet. Examples: 5 months after the introduction of the JDK 1.0, there were ads asking for 3-5 years of Java experience. There are ads currently out there asking for 3-5 years of ActionScript 3 (introduced I think June of 2006). Requiring a bachelors degree for an entry level help desk position doesn't add up to a healthy pool of qualified applicants either.
Job ads often have a huge list of "requirements" as well, and an applicant missing even one of them might well be screened out. An example of this? Seasoned web developers might not bother listing FTP on their resume. In their view, requiring a web developer to have FTP experience is like requiring a carpenter to know how to use a saw. But that failure to list FTP on the resume might well mean the application is automatically trashed. I have seen HR screen out applicants for a web developer position because they neglected to list HTTP, DHTML, and Photoshop on their resume. And don't get me started about HR's lack of understanding of the difference between a web developer and a web designer.
If HR departments are the source of some of the statistical and anecdotal evidence being trotted forth in support of the existence of this "shortage", I am not surprised the picture looks grim.
where will we find them right now
There's yer problem, right there, guv.
The problem is that the IT industry, like many industries, expects to find a pool of skilled and experienced available staff, at the drop of a hat, without the company putting in any effort themselves.
The solution is apprenticeships - a variant on "I wouldn't start from here", I admit, but the only workable solution nonetheless. Start the recruitment process two years in advance, and train up the monkeys to become experts. Another benefit is that apprenticeships, unlike university degrees, have no fixed syllabus and can quickly flex to meet new skill demand trends.
The problem with apprenticeships is that various governments have regulations against locking-in staff for long periods. Companies who invest in apprenticeships see their newly-trained staff bugger off to a better-paying competitor, who can afford to pay more since they haven't invested in apprenticeships, the moment they qualify. Governments need to relax regulations on locking-in apprentices to their sponsoring employer. Governments also need to give companies better ability to fire apprentices who fail to meet expected grades on time.
Cheap, experienced, immediately available - pick any two.
Andrew Oakley - www.aoakley.com
But who the hell would want to do that for a job? Honestly....
I found out our testers are payed on a par with or more than software developers the other day. At first I was a little angry, because I get angry whenever anyone is paid more than software developers because "we make your fscking products!".
Then I thought "What would it take to get me into that job?" and I realised they were welcome to the money.
http://www.fispace.org/home/2004/01/_when_i_woke_up.html
If someone says he and his monkey have nothing to hide, they almost certainly do.
As others have said, the argument really boils down to skilled IT staff, what employers are willing to pay and what these skilled IT workers are willing to accept.
If you can buy cheaper skilled IT workers from abroad, it makes the employers happy but will ultimately lower the value of these roles making them less attractive to new workers. Rather than being self-serving, it's a short term strategy that ultimately is self-defeating. As a responsible employer that realizes they're only one small cog in the national machinery, they need to realize what this impact will have.
We also have a lack of skilled IT workers coming out of the universities, largely because universities in the Western countries are focussed on number of students and number of degrees awarded. They are driven by income and results, not by the quality of their teaching. Again, this is self-defeating as we, the nation, now pay more for tuition that adds less value to ourselves. So we're spending more and gaining less. Nationally, this is a slippery slope that leads only downhill.
Personally, what we are prepared to accept as a wage is the final part of the problem. Our acceptable wage is largely driven by our expectations of what we want and our living costs. As living costs rise, we expect our income to keep pace. If we're also led to believe that we're chasing an American dream of a white picket fence, wife, 2.4 kids, dog and a pickup then we expect a little more money. After all, isn't that why we're working in this country. Didn't you sell that idea to us? If we can't achieve that dream, we'll go somewhere else.
As a professor and former technology CEO, I'd question whether Vivek Wadwha understands the labor pool in the USA. It's a complex arrangement of personal and corporate expectations mixed in with some realities, aspirations and a need for us to exist in the real world. If you want us to live near you in Silicon Valley, you need to make sure we can live nearby. Wisconsin salaries don't work in California.
I'm a 38 year old freelance computer consultant with no degree, no longer living in the country I was born in and started work in. My skills were honed from experience and were all gained outside of any classroom. I have struggled to find skilled IT workers, struggled to find work myself and been on both sides of the fence arguing for IT staff to be paid more and also trying to keep costs down. There is no soundbite that can solve this problem.
I see H1Bs helping to solve the lack of teaching within universities and its disassociation from industry but this has to be a short-term fix or the country will suffer. Devaluing IT jobs, will only bring fewer CS students so you really need to turn this around by championing more technology universities that focus on quality, not income or results. If anything only 75% of students should pass each year, if you get more you need to make it harder. Life is hard, we pass and we fail in every aspect of our lives. Death is the ultimate failing grade.
Don't bring in H1Bs without fixing the real problem.
Pick any two.
Back when Java had only been out for seven years.
There is no shortage, just a lack of skills reinvestment by the hiring managers.
-- Tigger warning: This post may contain tiggers! --
I'm also busy building a virtual test lab. It's the forst in the Southern Hemisphere, and one of the first in the world, so I expected to be pretty much on my own getting it up and running. What I didn't expect is that Microsoft seems to have no clue how to license software to us.
Let's face it. The real issue here is that the entry level position has gone away. I went out to monster and did a quick search for IT/Computer Software jobs with less than 1 year of experience in the RTP, NC, one of the biggest tech areas in the US and I got 6 results. 6!! Companies want to hire people with 3-5 years of experience essentially expecting some other company to pay for the training but are unwilling to create entry level positions and provide on the job training to develop the sort of person they want to hire themselves. With the myriad of technologies in IT these days there are only a finite number of technologies that one can learn to any sort of depth. It's unrealistic to expect people to be 100% productive their first day of work. Companies cannot and should not expect to hire talent that they are not willing to develop themselves.
You're right in that they're not trying to cap salaries. H1B is a good program in intent. Unfortunately they left it wide open for abuse and it's being used by many companies (I'll grant not all) as a way to get cheap indentured servants. If a worker under H1B is treated badly by their employer their only option is to go back to their country of origin. The abuses of this program hurt both US born IT workers by driving the market value down and the foreign workers wanting to use this program as they're in a position of which they're easily taken advantage. And now the companies that are abusing the program and probably the company using the program in the spirit it was intended are lobbying Congress to get the cap increased.
I have no problem with the spirit of the H1B Visa program, but with the current manifestation the primary beneficiaries are large companies wanting to keep payroll low.
Off the cuff estimate, roughly 90% of the best and brightest IT minds I personally know and including myself, the ones that git-er-done, have given up on long days, fixed pay, lousy conditions, incompetent management, threat of outsourcing, and mental cruelty. A lot of your "skilled" people bail out. We're smart, so we take jobs in lower paying, but more secure and laid back not-for-profits, or find a new second career. We've been in the industry for 10-20 years and want to do things like have families, and see our friends once in a while. I was personally told repeatedly by my management that they could hire 2 college grads or 4 foreign workers for the price of me and if I didn't like 80hr weeks I was welcome to leave. So I did.
Reading all these comments...there seems to be a common theme that "There is no shortage of IT workers, just a shortage of good ones."
Why is that? I'm really asking because I don't know. Why are the majority of practicioners of our profession bad? This doesn't happen with other professions does it? (doctor, lawyer, etc.)
I have a couple of theories:
1) Working in IT requires constant learning and keeping up on the latest technologies. People who already work 60 hours a week and have families just don't have time to keep their skills current. They trust their companies to keep them trained, and the companies let them down.
2) There is no consistent college preparation and certification like there is for every other professional field. I'm a software developer who has a Computer Science degree, but most other developers have MIS degrees, Math degrees, Engineering degrees, no degree, etc. Lots of people who are clever "coders" are actually poor overall software developers.
Anyone have other clues?
of the best people.
When you bring lots of good people into an area, you don't take jobs away from the less skillful, you create new jobs.
The problem with the H1B program is that it is structured, not just to bring in already abundant entry level labor, but to prime offshoring efforts by kicking that labor out of the country once it's obtained enough experience to be really useful. At the very least, we should not have a guest worker program for highly skilled workers, but one that clears the way for permanent residency and citizenship.
Even better, we should scrap the whole thing and fund a massive postgraduate fellowship program in a variety of technology areas, each fellowship accompanied with a handsome stipend and an invitation at the end to become a permanent resident. Of course, some knuckleheads would say it's unfair to tax Americans to pay for fellowships they can't apply for, which completely misses the point. I'm not talking about people of the caliber that are going to have trouble finding a job. I'm talking about people whose presence will create wealth and jobs.
Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
Governments need to relax regulations on locking-in apprentices to their sponsoring employer.
There is a market solution that doesn't involve short-term contract slavery: employers could compete to retain their valued and newly-trained staff.
Some organizations already do this, and succeed in keeping people for a long time. Others seem to never want what they already have: The new guy with the shiny resumé can command more than the solid employee they *know* has reported to work for two years for $10,000 less. So they talk about salary freezes, while they're hiring people for more -- and that's to say nothing of what they're paying the guys in marketing....
Of course, the market seems to let some of both kinds of organizations survive, so maybe the second type is on to something.
Tweet, tweet.
Just a theory but do you think your HR reps' BS detector is not working? I keep my resume slim and trim, only listing things I consider myself to be an expert in. I've interviewed plenty of people who list every buzzword and piece of software known to man that (for example) may have looked at a UML diagram once so on their resume it goes. For me, a resume that lists everything under the sun sets my BS detector ablaze. However, I'm sure to HR that means that person is more qualified than the person with a resume more like my own. So the problem my not be a shortage of skilled software devs, just that the resumes of the skilled software devs aren't getting through to your desk.
Good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws-Plato
Wow! The boss you had who said that illustrates exactly why so much software out there is garbage!
I'd say testing is VERY much a revenue-generating component of a business that sells software! Software inherently contains bugs, because people are not perfect. As my software coding friend used to fondly point out, "If I'm 99% accurate with all the code I write, that means roughly 1 line in every 100 I write needs fixing!"
Back when most software development efforts were 1 man projects, it was a "given" that the person writing the code would also find and fix the bugs in it. But when you develop today's large applications in a team, it makes sense to offload some of that work to another department. You don't need to waste a developer's time going back through their code for days, trying to make sure they've caught as many mistakes as possible. Delegate that out to a testing team, who can flush out the problems (even using automated tools to do repetitious stuff nobody will bother to do manually), and turn in the list of flaws found to the developers, so they're working on more focused problems.
In that perspective, a QA tester really *is* a part of the software development team, and IMHO, should be paid equally well. Both groups are working to accomplish the goal of getting a product released that delivers on what it promises.
As somebody that has just being replaced by people working in India (hello chaps!) I can categorically tell you there are labour shortages in Western countries.
I did the interviews, the people is just not there. As for myself I will take a few months off because I know there will be a job for me once I am rested and have done a few things I have in the back burner.
The situation in the US is not the way you are portraying it. Foreign workers are well paid (by definition, given the kind of visa they need to enter the country) so they are not driving salaries down, and most importantly pay taxes and spend money in the local economy, which benefits without having invested a dime in the education of these individuals.
The people driving salaries down are the ones working remotely and that never set foot in the country they are serving, very often using the infrastructure in that country, which was originally built to benefit the local population. That is what happened to me. I have no problem with this, I will have to take a lower salary most likely, but this is just natural given the savage competition to which we are being confronted (people in India are forced to work insane hours for a quarter of what we earn in the West, but fret no, salaries are going up and it is a matter of 3 or 4 years before they are comparable to Western standards, the turnover rate over there is atrocious, because techie people over there are not stupid: as soon as they get a better skill set they move on. In my experience this is at the very least 40% a year of attrition rate, so you always have a half competent group of people, half of which will leave very soon. Some companies are waking up to this fact, but some others are going ahead like a blinded lemming with suicidal thoughts).
Techies in developed countries should be writing to politicians about why they are allowing people working remotely in machines based locally, offering services locally. If they are affecting the economy in such way, they should be taxed as if they were working locally, people working remotely get all the money but pay no taxes locally, while the other way around is nigh to impossible to set up shop.
Or we should get free access to Indian and Chinese markets in order to compete in a fair basis. But our politicians are too busy wasting billions of dollars killing innocent people instead of investing in the future of our respective countries.
IANAL but write like a drunk one.
I've been teaching mathematics for 20 years now, and ever since starting I've been told that there's a shortage of mathematics teachers. What's most puzzling is that 65% of the teaching time at my school is done by extremely low paid adjuncts . . . the union (surprisingly) is the main advocate of low paid adjuncts as it helps reduce the total cost of instruction, which helped a cadre of union old timers reach outrageous salaries ($170,000/year for 32 weeks of work, benefits (~$20,000) not included). The adjunct rate for an equivalent load is a flat $15,000 (I'm not kidding).
The best part of these numbers is that the public routinely buys the mantra that we need mathematics teachers, and the reason that we have such bad outcomes is that few are qualified to teach mathematics. Oh, did I mention that the adjuncts at my school are required to have advanced degrees in mathematics?
Yes, IT often explains away their incompetence as a result of not enough qualified people. Funny, but I think most of the IT staff at my school are low paid part-timers, with a small cadre of well paid people at the top. I hope you see the similarities.