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 ..."
A lot of IT is an expense without adequate ROI. Huge IT support staffs were a consequence of poor products, badly implemented systems, a glut of unnecessary purchases, etc. While some IT functions will always need on-site support, better-designed systems and software (including middleware) should make it possible to reduce IT staffing costs.
Think of all the other functions that have disappeared over the past century: typing pools, filing clerks, huge mail rooms. The armies of help desk types will go the same way.
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*
I didn't see any reasons backing up these postulations. Especially the downturn in contractors. Is this yet another case of these companies reporting something just so they can report something?
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.
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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.
In my country, we have a saying: "Why buy the cow when you can get the milk for free?" In this case, the milk is open source software and the cow is the developer.
Do you even lift?
These aren't the 'roids you're looking for.
This doesn't surprise me too much. There's been a bad recession on the horizon for quite some time now, and it looks like it's coming home to roost.
For the first time since I graduated college, I'm not getting called for interviews, even for positions which I'm eminently qualified. It's getting tougher for people to find jobs, regardless of what they do. I've heard Republicans say that we're going to be in the worst recession since the Great Depression - which means that we're probably in quite a bit of trouble.
Perhaps I'm speculating a little too much here, but I'll bet the money that would have gone for IT salaries, etc... is now going into the coffers of the oil companies. Because our economy is so dependent upon oil for everything we do from growing crops to power generation to transportion, any rise in the price of oil is going to have a ripple effect.
Perhaps GW and Co saw peak oil coming and thought if we could just take Iraq, that we'd have enough oil. Perhaps they didn't understand that the loss of Iraq's oil on the world market would drive up prices - or maybe they did...
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I'm sorry, but it's hard to take your message seriously when your company name is Pund-IT. From the name, I think you'd have been better off with Pun-dit. Or Pwnd-IT, which is pretty much what a lot of consultants are going to be feeling like next year.
At any rate, anyone who has been around business through a down-cycle or two would know that this is common sense. New programs, new ways of doing things, are saved for when the budget Gods are feeling generous with surpluses, not when eveyone is tightening their belts. There are, of course, exceptions to this... but anyone who thought that, in general, discretionary spending would increase over the next year really needs to have their head examined.
"Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
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.
Well having to have had to manage a team in the Phillipines, miscommunications, missed deadlines, inability to follow instructions, redundant programming, lack of teamwork or cooperation, poor scheduling and more makes the low pay only part of the cost when the overall expense of the project eventually becomes 5-10 times what it needed to be had we hired local developers.
Outsourcing only pays off for VERY well managed and VERY well organized 3rd party organizations that you can trust 100% and as a rule, they don't exist because they don't exist ANYWHERE. You need to have an onsite presence much like IBM and Microsoft has in order for offshoring to really payoff. Otherwise you are not saving anything and may even be paying more... regardless of what some pitchman may tell you.
This is my sig. There are many like it but this one is mine.
Software development isn't something you do as a businessperson because you want to pay for people to work on computers - it's something you do because you want something made or done.
Businesses will still want things made, and they will still want things done, because they are still going to be responding to a changing market, and they still want to be able to make new stuff, or change the stuff they currently make.
Software may be expensive to develop and test, but it's still one of the cheapest things you can mass produce, and one of the cheapest ways you can modify an existing product line to expand your market.
The emphasis will certainly be on return on investment - and there will be very nice plans on exactly how to spend the least possible, but the moment the competition has a feature that looks to harm the product line, *gasp* - suddenly the design for the product will have to be retrofitted, testing will have to be expanded, or the product release cycle will have to be accelerated to get that new feature in!
I completely understand this survey though - while companies do care if they end up spending more than they initially estimated, they just need to estimate low costs now, thanks to economic pressures to show the illusion of fiscal improvement and concern for the shareholder's resources.
So to show productivity when all you have are plans, you plan to make better features, spend less, and beat the competition - then ask for more money when you have more to show, which would only go to waste if you stopped now.
What this illusion accomplishes is a bit backwards though - there simply won't be as much open planning of large software project, and more emergency dollars and small contracts. You end up spending much more - much like the shift towards low cost estimates, but then using contractors and emergency spending in the Iraq war. It's the way the game tends to be played in poorly planned business and government - and it's very alluring if you only care about a small set of things going into it.
Ryan Fenton
Someone in the media said I.T. jobs are going to drop next year? They *MUST* be able to tell the future! =p
On a serious note, I'm glad I.T. jobs are going to decrease. Hopefully it will align with I.T. jobs demanding more expertise and more actual work getting done, instead of having a "cloud" (or "grid", if you will) of Windows-only support drones reading scripts to you over the phone while you try to get support for a purchased product.
It is pitch black. You are likely to be eaten by a grue.
Goldman Sachs IT, eh? Yesterday it was Gartner. These are guys with funded track records of largely failure, IMHO. I wouldn't give them much creedence. The industry is ripe and rife with change, be it the blossoming of mobiles/cells to the enormous competitiveness of online commerce platforms, incredible changes in entertainment delivery systems, etc.
There's a small problem in the US economy that will actually be improved no matter who is elected US president, as it always is a honeymoon between investors and the new government every four years. And it's very likely that with a new regime will come a drastic cut in oil prices.... further spurring money back into tech, where we've made the most gains in the past few decades.
Gotta love a doom sayer; it's done so they can by the stock cheaper now, then sell it higher later. This is called capitalism, and the propaganda is called marketing.
---- Teach Peace. It's Cheaper Than War.
Seriously....I look in the paper and it's filled with ads for drivers. That and health care professionals. And as I would rather stick a pencil in my eye than work in health care, I figure my misanthropic ways would be better shifted toward driving.
I'm 46 and have to basically totally switch careers as there are just aren't any jobs in my profession anymore. It's over saturated. I hardly ever see an ad for IT or anything related in my area. As scary as it sounds, changing directions even this far into life may not be a bad idea.
Even with fuel prices sky-high, trucking will be with us for a while as lets face it....everything within your eyesight right now reading these words was all delivered or transported some way via a truck (unless you're looking out your window at a tree or something).
"Leo Fender was in a 'state of grace' when he designed the Stratocaster." -- Paul Reed Smith
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?
The statements that Cloud Computing, grid computing, and open source software are not priorities is ludicrous. These are tools that are used to solve problems. It's like saying a hammer is a priority rather than building a house. No C?O will ever say that these are priorities while they may say that virtualization is a priority because it is often considered a project to virtualize as much as possible for DR and to cut costs. If spending on IT does dip we all know that only the bottom 10% will get their walking papers. I would assume that Charles King will be one of them.
I swear I didn't know it was loaded...
This doesn't surprise me too much. There's been a bad recession on the horizon for quite some time now, and it looks like it's coming home to roost.
I wonder if your exact area of expertise or geographic location is a factor in that? I haven't been looking for work in months and still get occasional calls to see if I am looking for work. (The most recent one was just last week, and they were looking for a 1-2 year commitment.) I've heard of some people having a hard time, and others are up to their eyeballs in work.
I'd rather have 1 rock star coder than 20 mediocre ones.
The article is about IT. They don't do code.
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.
me and my colleagues actually are telecommuting.
i kinda own my own business though. but, judging from the possibilities available in dev communities around the net, i can say that there are decent number of telecommuting jobs for many programming positions. provided that you can prove experience and track record. elance is one.
what i think is, many people who always worked in corporate culture either dont know where to look telecommuting jobs, or look down when they find them.
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What would the world be like without Google?
Well, it would have a few more dissidents.
"Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
It is taking fewer and fewer people to do jobs that used to take more people to do them. Cuts in the overall number of IT jobs will continue for quite awhile. This is especially true in front line jobs like IT support and Help Desk. The former are fewer because hardware has become more redundant and commoditized; it's easy to just plop a new box down or have your redundant drives/servers take over the load while you get around to fixing it. The latter are fewer because more and more organizations are moving towards 'self healing' and 'self help' type support models.
Cloud computing is not the same thing as Service Oriented Architecture in the same way that the interstate highway system isn't the same thing as an automobile.
everyone gets paid per their quality. there are indian coders that ask for $15 hourly, which is a phenomenonal rate for india. as you build up your reputation, you can ask even up to 40 hourly and get jobs from within u.s. even if you are outside united states.
my guess is that if u.s. it workers can lower their expectations a bit, they can survive anything. but then again they need to be not indebted with mortgages, kid college fees etc. but then again with the global recession looming these kind of commitments would be a problem anywhere in the world.
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Companies with foresight and vision will investigate those technologies that can increase their productivity AND the bottom line profit. Patching the dam only keeps it from breaking until later. You have to build a better one at some point.
Grid computing works. It's used in science research quite effectively. Cloud computing is coming no matter what people want.
There was a time when companies had their own power production facilities, now they don't (for the most part). As networking becomes faster (both latency and bandwidth) it will become cheaper to run your software somewhere else than running it in your building.
that offshore jobs will go first. They're cheaper than local jobs.
Only in the short term. What's happening now (based on my anecdotal evidence, which is all one really needs here on /.) is that a lot of large companies are realizing this. Difficulty in communications, poor timing (What, you need that fix now? Sorry, you'll have to wait until tomorrow morning), and some of the shoddiest work you've ever seen are all contributing factors.
On the surface ,it's a very appealing model: you write up some requirements, communciate them to your offshore team and wow! magic! they return to you a finished product.
But here's what they don't tell you in the brochures (again, based on my experience managing and working with offshore vendors): a) if you don't spell out every single technical detail - almost literally to the point of writing the software yourself -- , you can't rely on them to do it right. b) you can't rely on them to communicate to you the things that they need clarification on, unless you are ready to spend a lot of time asking for t. c) the code you get back wll be virtually unmaintainable, with no thought given to refactoring, common functionality, or future mainitenance d) most of the development seems to be done by people with low experience (just out of the schools, which don't seem to teach anything relevant to the real world) and little skill e) if they have issues, do not expect to learn about them unless you constant ask for them. DO expect them to sit idle and not take any initiative if an issue occurs.
So all of this goes to say: it looks too good to be true, because it is. The old saying is that you get what you pay for -- and it still holds true. And after many years of budget overruns and software that doesn't do what it's supposed to do, companies are finally beginning to realize that.
At least for IT workers in the USA, UK, Australia, and Canada.
Occam's razor: off-shore labor is a lot cheaper, therefore employers will off-shore every possible job. If you do your job sitting in front of a computer, then your job can probably be off-shored - if not now, then certainly in the near future.
Furthermore, the simple laws of supply and demand dictate that the few jobs that are not off-shored, will have a glut of qualified applicants. The experienced developers who have their jobs off-shored, will clearly try to leverage their existing training and experience into the few remaining IT jobs that can not be easily off-shored. This causes a glut, and drives down wages.
The IT worker glut may be increased even more by improved automation of information system maintenance, standardization of software, and non-IT specialists who are increasingly sophisticated with information technology.
There can be nothing to stop this devastating trend, due to the following:
1) Corrupt USA politicians
2) USA IT workers are not willing to organize (please note: I am not suggesting a union)
3) Influential corporations have effectively distorted the issues
So there you go, it's as simple as that.
IMO: this trend is presently in it's infancy. The present trend has very little to do with the present economic slump. In fact, when the US economy recovers, this trend will accelerate even faster. The present situation for US IT workers is much better now, than it will be five years from now.
You shouldn't be so proud of the fact that you're a stronger flavor of douche than someone else.
"It's his right to do so of course since it is his money". I think 2000+ years of human history has proven that given the chance a small group of individuals will hoard everything and leave the rest killing each other for scraps. Why should we let that happen? Why is it OK for Carly Fiori to buy a private plane when my single mom neighbor is about to loose her home because her ARM shot her payments way up?
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E.G.#1-> I remember telling a bunch of network techs, or rather, first asking them:
"Do you know how to find the midpoint of an array, without knowing the total # of elements"
& not a one of them could...
We had this kid in my research lab who was a fabulous hacker and pretty solid scripter, but didn't know what a for loop was. One of the best programmers I know is self taught (which is the way a lot of people got into the field)). On the flip side, I've got classmates who are so lost on fundamentals that they don't know what an object is (seriously, one professor gives that question on exams and it kills students.)
I've seen far too many people get through their degrees through a combination of cheating, relying on partners, and cutting and pasting code to really trust it. One of the worst programmers I know has a 4.0; he writes hacks that work well enough, but that I wouldn't trust anywhere near production code (mostly 'cause I've seen it fail miserably in production code 'cause he didn't comprehend real time debugging.)
open source modern art: laser taggi
Everyone else had the same idea too, and big hospital management is having the same H1B ideas that everyone else had too. Engineering is a zero, which is a good reason for declining enrollment. Law has always been a crap shot as are most insurance/sales/bank cubicle jobs. Medicine still pays well and there are lots of employers. But guess what, the same kind of regional consolidation is taking over and the biggest hospitals have started to import H1B, aka slave, labor. Insurance companies are doing their part to force the same kind of throat/cost cutting all around. The downturn is only going to accelerate these trends. If we get another republican administration, Medicine will look like software, aviation or broadcast media.
Bottom line, keep doing what you do best. Trends will always betray you.
DMCA, Hollings, Palladium. What might have sounded like paranoia is now common sense.
Well having to have had to manage a team in the Phillipines, miscommunications, missed deadlines, inability to follow instructions, redundant programming, lack of teamwork or cooperation, poor scheduling and more makes the low pay only part of the cost when the overall expense of the project eventually becomes 5-10 times what it needed to be had we hired local developers.
Outsourcing only pays off for VERY well managed and VERY well organized 3rd party organizations that you can trust 100% and as a rule, they don't exist because they don't exist ANYWHERE. You need to have an onsite presence much like IBM and Microsoft has in order for offshoring to really payoff. Otherwise you are not saving anything and may even be paying more... regardless of what some pitchman may tell you.
Agreed. We are dealing with massive turnover, double digit inflation, and worst of all regular power outages in India. Oh, generators you say? Try affording the diesel to power those generators during the daily outages.
All for less than half the productivity of the states.
...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.
For someone with a mere 16 years in industry, a degree in maths, and 26 years of programming, can you enlighten me as to the answer to this?
"Do you know how to find the midpoint of an array, without knowing the total # of elements"
Either I'm parsing the question wrong or it's impossible. You could poll [2N] until you hit an exception but this doesn't work on machines/languages that simply crash when you access an array out-of-bounds. So what's the general solution?
Since we like to partition out at least one server per app since app vendors like to point fingers at each other....
That's the problem. Ask "Can you install this app as an ordinary user, without root privileges?" If the answer is no, then the TCO of the application just went way up.