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Increased outsourcing and the general perception that there are fewer opportunities may be preventing some people from entering the I.T. field, says job-market guru John Challenger. "For the jobs that remain, the bar has been raised, which may further limit the number of candidates who are qualified for entry into the field."
At first glance, one would think that the field of information technology (I.T.) should have no problem attracting top talent. I.T. staffers and managers get to work with the latest technology and take home paychecks that are more than respectable. And, in theory, if they generate a bright enough idea, they could conceivably hit one of those mythical billion dollar paydays. (If you want to know what that's all about, just ask Sergey Brin and Larry Page, who co-founded Google, or Mark Cuban, who became a billionaire when Yahoo bought Broadcast.com from him in 1999.)
But the truth is, like any other job market, the I.T. marketplace also goes through its share of ups and downs. Several year ago, the U.S. I.T. marketplace looked downright gloomy as aggressive cost cutting, decreasing wages, and tech-company closures put the kibosh on the heady days of the go-go Nineties, when technology could do no wrong.
With the 2007 new year now upon us, we took a moment to ask the experts: Is I.T. now officially back from the brink? And, most importantly, are the best and brightest minds once again flocking back to I.T.?
The Marketplace Today
Back in 2003, John Challenger, CEO of outplacement-consulting firm Challenger, Gray, and Christmas, said the honeymoon for I.T. careers was over, as students coming out of school began to realize that an I.T. job was not necessarily a guarantee for a smooth, upwardly mobile career.
Today, while Challenger is not as dire in his assessment of the marketplace, he still characterizes the I.T. job market as "mixed."
"We saw a spike in tech-sector job cuts in the third quarter," says Challenger, "suggesting that companies are downgrading their outlook for the current year."
But Katherine Spencer Lee, Executive Director of Robert Half Technology, says the I.T. job market is growing right now. According to her company's 2007 Salary Guide, the average starting salary for I.T. professionals in 2007 is projected to be 2.8% higher than it was in 2006.
"This compares favorably to 2003, when I.T. professionals were facing the slowdown following the dotcom era collapse, an uncertain future and heated competition for positions," says Spencer Lee.
So, while 2.8% doesn't sound like a king's ransom in salary upgrades, it's still far better than a pink slip and a hard shove out the door.
What's Hot? What's Not?
Within any job marketplace, certain job types heat up while others cool down. In the I.T. marketplace, says John Challenger, areas that are hottest right now include information security and software-application development. In addition to those two areas, Katherine Spencer Lee adds web development, data warehousing, and project management to the list. Her company's research predicts that the five job titles that will experience the most salary growth in 2007 are software developer (5.1%), data warehouse manager (4.2%), web developer (4.2%), project manager (4.1%), and QA Associate/Analyst (4.1%).
Based on these stats, today's college students would be well-advised to sharpen their coding skills if they're looking for the best job opportunities, post-graduation.
And on the flip side, John Challenger says, "The areas that are cooling in terms of job opportunities include database administration, help/support desk technicians, and other routine functions that can be moved easily overseas."
Wherewith Outsourcing?
Ah, outsourcing. No other career term triggers stronger emotional responses in all kinds of people, from politicians pandering for votes to workers fearing for their jobs. In spite of all the negativity surrounding outsourcing -- and its presumed counterpart: downsizing -- the practice is here to stay. But not all is as it seems with outsourcing.
"It's interesting that I.T. workers are concerned about their jobs being outsourced while, at the same time, managers are concerned about finding enough quality talent," says Katherine Spencer Lee.
The fact is, says Spencer Lee, hiring managers are still faced with a shortage of quality, skilled candidates these days. When companies find candidates with the hottest skill sets, she says, they are snatched up quickly. In fact, she adds, companies are finding they need to go the extra mile to recruit and retain top talent with high salaries, bonuses, stock, and extras like flexible schedules, training and other perks.
So what's up with all the talk about outsourcing and its supposedly corrosive effects?
"The jobs being shipped offshore [like support and administration] are not high-level management positions. The jobs that remain here will be filled by professionals who can merge knowledge of I.T. with an understanding of business, and the application of technology to business," says Spencer Lee.
John Challenger also points out that the outsourcing trend will only expand as more and more routine jobs move overseas.
"This increased outsourcing and the general perception that there are fewer opportunities may be preventing some people from entering the I.T. field. For the jobs that remain, the bar has been raised, which may further limit the number of candidates who are qualified for entry into the field," says Challenger.
At the end of the day, it appears outsourcing is creating more attractive opportunities on the U.S. home front, while more routine jobs are shipped overseas. After all, someone who knows something about I.T. still needs to manage all those programmers and support staff toiling tirelessly away in other countries. And that's not a bad thing.
The Best, The Brightest, The I.T. Workers
So the question remains, are the best and brightest still attracted to I.T.? Or, are the less than optimal job conditions seen during 2003 still casting a pall over the I.T. field?
John Challenger says yes to the former, but points out that competition for talent from other fields is also increasing.
"Some may have the perception that the golden age of I.T. is behind us and that career opportunities are fading, which is ridiculous when you consider that technology and our reliance on it grows daily," says Challenger.
Obviously, I.T. talent is needed to manage and maintain existing technology while others work hard to innovate and invent the new technologies that will keep the I.T. train chugging along.
And that means companies will have to pay to capture and retain the talent they need. "The I.T. workforce is one of the better paying segments of the economy currently, and will continue to attract top, professional talent," says Katherine Spencer Lee.
Career Advice
So, what should the eager young minds in school who are contemplating I.T. careers do to succeed in today's I.T. job marketplace? The answer is that school will never really be out for those who work in I.T., and that diversity and flexibility are the keys to success.
Katherine Spencer Lee advises those entering the I.T. workforce to diversify, learn a little about everything and be open to all new opportunities. "Volunteer to be involved in projects in areas outside of your department and read as much as you can about the industry in which you work," she adds.
I.T. workers who are already employed should be constantly monitoring the rapidly changing pace of technology to make sure they don't get left behind with outdated skills.
"Just as computer technology has a rapid obsolescence rate, so do technology workers. Before your skills become obsolete, you want to be able to transform yourself into the 'next version' of worker that will be in demand," says John Challenger. And that, he adds, is a career-long process.
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