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IT Jobs To Drop In 2009
ruphus13 writes "A new Goldman Sachs IT report recently released states that IT jobs will be dramatically reduced in 2009, starting with contract and offshore developers. From the article: 'Sharp reductions likely in contract staff, professional services and hardware, and almost no investment in cloud computing.' The article goes on to say 'The CIOs indicated that server virtualization and server consolidation are their No. 1 and No. 2 priorities. Following these two are cost-cutting, application integration, and data center consolidation. At the bottom of the list of IT priorities are grid computing, open-source software, content management and cloud computing (called on-demand/utility computing in the survey) — less than 2% of the respondents said cloud computing was a priority.' Postulating a 'pointy haired boss' problem, an analyst goes on to say, '[Grid computing, Open Source and Cloud computing] require a technical understanding to get to their importance. I don't think C-level executives and managers have that understanding.' But they do control the paychecks ..."
If there was ever a semi-mindless task that brings home the bacon, integration is it.
Make this work with that and that work with this.
Ok.
*scratches ass*
*does it*
*gets paid then laid*
but, will they really drop globally ?
AND, since, our area, i.t., is a field that is kinda the originator of the concept of telecommuting, wont many i.t. people in u.s. be able to find work overseas, working through telecommuting ?
i dare not say demand for i.t. people will go down worldwide. its kinda impossible, since i.t. revolution is on full steam right now - we, as a civilization, are little far from trying to integrate our toilets to computers and internet.
Read radical news here
Can't speak for the US, but in the UK we're ideal for economic downturns.
We don't cost holiday, pension, bonuses or sick pay, we don't have loads of employment law red tape and we can be brought in for specific projects and timeframes and tend to come with much shorter notice periods.
Plus the public sector loves us.
We'll see a freeze in rates, maybe even a reduction, but if anything economic downturns signal a bad time for those in permie jobs.
Bob the permie coder might be on half my hourly rate, but if he's only got three months work in a year he's going to cost you more than twice as much as bringing me in for 3 months.
Until someone with the correct technical understanding can actually go to their manager and (with a straight face) say, "I'll use cloud computing to solve this problem because that'll save us money and time" there's no real reason to expect anyone to get it.
Successful blue-sky projects are mostly run by strong companies in good economic times. So, not so likely right now. Someone who's playing with their own money could well take advantage of this lack of understanding or vision or whatever, but that's not really a bad thing. Unless you're stuck in cubicle land and still want to play with the latest, coolest buzzwords.
cogito ergo dubito
If you are a seasoned IT professional or somebody who is starting out, things are looking bright for you as long as you have what it takes to be an engineer. I welcome any sort of clean up or a downturn in IT economy because most of the time it means that the bottom of the IT-wannabes will be laid off. This will benefit everybody in the long run.
First of all, engineering, unlike being a pizza delivery person, requires some knowledge and a certain set of analytical skills that one is born with. You can train people to deliver pizzas and punch cards, but it is hard to train people to resolve problems or come up with elaborate solutions. While books and schools may help, you either get it or not from the very beginning. Downturn in IT will mean that people who were there just for the sake of it, will probably lose their jobs or move on. This is great for the folks who -- while being good peole -- are simply not suited for jobs in the field of information technology.
While we all cry about off-shore development labs and cheap labor around the world, we are forgetting one thing: Americans are cheap now. Due to the falling dollar it makes less sense to run costly operations overseas. With China, India and Russia on the rise, people in those countries may see little in jobs and environments that make them work for the global companies (aka capitalist pigs).I would not be too concerned about wages if I were you. In fact, bad conditions in the U.S. sent many people who are currently employed via visas overseasas. Several friends of mine have moved back to their home countries alrady because "There is nothing to do in the U.S." This happens because while U.S. economy may go down, the world's economy is still expanding and there are plenty of things that have to be done in Moscow, Mumbai and Beijing. Good fore those who go back home and establish companies there. Good for the rest of us who are here.
And finally the loss of IT jobs should not be seen as the judgement day. I found that many people with engineering and business skills are more than capable of starting their own businesses and running their own shows. If you do not belong to the first group of people -- the ones who were not doing anything productive -- and you're not on a visa -- and you cannot go back home to start something new -- use the settlement to start something new. Many large companies are losing business because of the bad decisions that were made across the corporate ladder. A bust is only a bust if you think this way. In reality, it is a great opportunity for improvement for those of us who would like to grab the bull by its horns.
The report was based upon a survey. So, the reason for the reporting is "Most CIOs we interviewed expect to reduce expenditures for contractors and discretionary IT spending". If you want reasons, you'd probably need to contact the CIOs that were interviewed. But here's my guess: pressure from owners/the board to reduce costs in the face of lower forecasted revenues.
Take the article for what it is... not an analysis of why and how companies will reduce spending, but instead the results of a survey.
"Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
Well, I think I should prepare to jump the IT ship pretty soon. My friend, with whom we were in this IT sector, jumped to the health-care field.
His Bachelor's and two Masters degrees in the IT sector at age 37 helped him get admission into one of the most coveted Nursing courses. He now practices as a nurse manager, earning close to US$80K. This does not include part-time work which he has to run away from.
This fella makes close to US$145K. I envy him. Guys, the health-care field is booming. Reports say nurses are in short supply and this will be the case for another three decades!
I am seriously considering jumping ship before it's too late.
Question is: Am I wrong?
My sister is in the higher-ups of a large healthcare corporation, and she has just told me a few weeks ago that they are actually short of IT personnel and are going to start hiring them straight out of college, when normally they would require previous work experience. Then again, Goldman Sachs seems to talk their own books, not to say they aren't a great firm...but, they aren't always right but seem to cause a significant short term impact on markets.
Don't extrapolate the US's crappy economy to countries you know nothing about, thanks. If you're avoiding the IT field in Canada, you're avoiding a field where, in parts of the country, there are more jobs than people and IT companies are very desperate to hire someone, anyone, with remotely relevant experience.
Our economy is just fine, thanks.
However, the road is long and he who lives in the mind can easily go batters on the mind numbing crawl that is the highway.
Tell it like it is.
I just quit driving for a living 2 weeks ago. You get a fair bit of abuse on the road, and after a while it gets very difficult to externalise it. So I was going mad, bit by bit. Can't live with 'em, can't kill 'em. So the best thing for all concerned is to stop doing it.
Currently trying to "re-invent" my old IT skills, but I'm a long way back. Better than driving though. It may be better in the states, at least on long runs.
Too true mate - a company which I'm affiliated with but shall not name is going through a reorg right now. The reorg is surprisingly a good idea, and well-executed by the executives. However, I heard a middle manager explain it to a bunch of interns as "profit centers are called that because they generate profits, while cost centers only serve to drag a company down. That's why we're trying to minimize our cost centers as much as possible."
What made it extra funny is that a lot of the money freed up by the reorg is going into *new* "cost centers", and this middle manager himself works for a "cost center". I myself work for a "profit center", but honestly perform more of a functional role.
It's necessary to draw lines somewhere, and have accountants and accounting, but the fact of the matter is that some things are inherently hard to quantify. You look at the numbers but go with your gut.
...is that they only asked Fortune 1000 CIOs. Where do the majority of IT people work? I'll give you a hint: it ain't in F1000 organizations. I'm an independent contractor working in the small business sector. My clients have 50, maybe 100 total employees, $1-$10 million in revenue and no programmers on staff. Yet they need, or want, custom systems built. I have to turn away business and I see no end in sight.