Demand still exceeds supply for IT workers

Computerworld - IT workers getting ready to enjoy the Labor Day weekend can celebrate the holiday knowing that they're in a field where demand remains strong despite the sluggish economy -- although that demand may not translate into higher salaries this year.

To compete for skilled IT workers, companies aren't necessarily offering higher salaries. Employers are pushing other benefits, such as flexible hours, training and telecommuting choices to attract and retain employees, according to a Cutter Consortium survey of 47 Fortune 1,000 companies.

"The fact that companies are having trouble keeping up with market salaries means that salaries are rising more rapidly than expected," said Cutter consultant Chris Pickering, who wrote the report, "Survey of E-Business and IT Practices." "This means that there is greater demand for IT staff than there is supply."

To attract the best IT people, companies are allowing workers to telecommute and training them on technologies that will lead to work on cutting-edge projects.

Pickering noted that the focus on nonsalary benefits supports one or both of the following claims: IT professionals are more concerned about working conditions and advancing their technical expertise, and companies have gone as far as they are willing to go in terms of salary, signaling a leveling off or decline in salary increases.

Meanwhile, Computerworld's annual salary survey, which will be released Tuesday, shows that IT salaries are rising moderately this year, averaging just under 6% but still higher than the 4% raise the average U.S. worker can expect.

A study released in April by the Information Technology Association of America (ITAA), an Arlington, Va.-based trade group, also supports the view that demand for IT workers remains substantial, although not as strong as the demand a year ago.

An ITAA report titled "When Can You Start?" concluded that demand for IT workers is strong despite a 44% drop in demand from last year. Based on telephone interviews with 685 hiring managers, the report said that this year, employers will try to fill more than 900,000 new IT jobs and that 425,000 of those jobs will remain vacant. Last year, the ITAA said there were 850,000 openings for IT workers.

According to the group, the jobs most in demand by IT and non-IT companies through the first quarter of 2002 remain in the area of technical support, although demand for technical support professionals is down 65% from last year. The ITAA added that while the slowdown in the economy has diminished IT spending, demand for IT talent with the requisite technical skills persists.

Pickering