IT workers are facing an increasingly tough job market, a new study from Park City, Utah-based Janco Associates finds.
The 2010 Information Technology Compensation Study concludes that a confluence of factors, including the widespread implementation of hiring and spending freezes in addition to laying-off of staff, are adversely impacting the ability of IT professionals to demand higher salaries.
“The current economic climate with its cost cutting mindsets, business closures, and extensive outsourcing has put such great pressure on the IT job market that overall pay has been impacted. Janco CEO Victor Janulaitis said in a statement. “Added to that many ‘baby-boomers’ who had planned on retiring in the next few years are not leaving the job market and you have more potential employees than positions available.”
The report, which surveyed companies across a variety of industries, found that this surplus of workers was especially true in the executive and middle management ranks. There was also a strong geographic correlation related to the financial services meltdown, with over 200 IT professionals in the Metro New York looking for work due to mergers, bankruptcies, and layoffs, the report noted.
In addition to the geographic disparities, the numbers also revealed a divergence between large and mid-sized companies. While the mean compensation for all IT executive positions at large companies rose slightly to $143,776, in mid-sized enterprises it decreased to $123,646. Indeed, many mid-sized enterprises have stopped hiring all together, Janco noted.
The report also details the effect of continued outsourcing of IT functions, noting that positions such as technical specialist and network control analyst are increasingly vulnerable to being outsourced. What’s more, entire layers of middle management have been eliminated, thus increasing the number of direct reports for many IT directors, managers, and supervisors.
This article can also be found at InsuranceNetworking.com.
Register or login for access to this item and much more
All Information Management content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access