Skip the navigation
)
News

Offshoring blamed in part for IT's jobless recovery

TechServe says only 600 IT jobs created in U.S. in November; consultant says back office IT jobs in U.S., Europe will be cut in half by 2014

December 6, 2010 06:00 AM ET

Computerworld - WASHINGTON -- The latest government labor report shows lower-than-expected job growth in the U.S. last month, along with a rising unemployment rate, and experts say that IT workers were not immune to that trend.

TechServe Alliance, an IT industry group based in Alexandria, Va., said that its analysis of the U.S. Department of Labor report released on Friday found that IT employment increased by only 600 jobs in November on a base of 3.9 million jobs. Overall, U.S. employers added 39,000 jobs last month, according to the Department of Labor.

TechServe, which conducts its own monthly analysis of government labor data, said IT employment has increased by 2.5% so far this year.

Why the anemic jobs growth in IT?

The Hackett Group, a business advisory and consulting firm based in Miami, places at least some of the blame on offshore outsourcing, which it calls a contributor to a "jobless recovery."

Using data from its own clients and other sources, Hackett examined IT hiring trends among U.S. and European public companies with annual revenue of $1 billion or more, and concluded that by 2014 there will be only 2 million back-office IT jobs in the U.S. and Europe, down from 4 million today.

The Hackett Group defines a back-office job as a position that directly supports corporate IT by running data centers and business information systems. Commercial technology product developers, consultants and the like are not included in the IT workforce subset.

Michel Janssen, Hackett Group's chief research officer, called the projected reduction in IT staff employment "the new reality. It's not good if you are an employee looking for a job, but [offshoring] is what is required for survival" by many companies, said Janssen.

"If you are not competitive on a global landscape and your cost structure is too high and you are paying premium rates for your staff, then you're not going to survive," he added.

Offshoring is so pronounced that companies "have taken that whole bottom level off the rung," said Janssen, referring to the lower-level IT positions. He added that by doing so, though, companies are creating a new problem by losing much of their pool of future senior IT managers.



What is Tech Briefcase?
TechBriefcase is a new, free service where IT Professionals can Search, Store and Share IT white papers and content like this. Learn more
Bookmark content
Speed up your research efforts with content across the web.
Search and Store
Find the white papers you need. Create folders for any topic.
View Anywhere
Open your briefcase on your iPhone, tablet or desktop. Share with colleagues.
Don't have an account yet?
Additional Resources
Security KnowledgeVault
WHITE PAPER
Security is not an option. This KnowledgeVault Series offers professional advice how to be proactive in the fight against cybercrimes and multi-layered security threats; how to adopt a holistic approach to protecting and managing data; and how to hire a qualified security assessor. Make security your Number 1 priority.

Read now.

Cut Communications Costs Once and for All
WHITE PAPER
New IP-based communications systems are being deployed by small and midsized businesses at a rapid rate. Learn how these organizations are enabling faster responsiveness, creating better customer experiences, speeding office or mobile interactions, and dramatically reducing existing communications costs.

Read now.

Careers White Papers
Practice Management: Double Billing Rate and Improve Patient Services
Would you like to double your billing rate and achieve faster payment for services?

Download this customer success story to see how One Health...
Mission Critical Data Explosion and Customer Case Study
Would you like to double your tier 1 storage capacity while simultaneously reducing your storage footprint?

Download this customer success story to see how...
Protecting Against Database Attacks and Insider Threats: Top 5 Scenarios
Read this new eBook to learn the top five scenarios and essential best practices for preventing database attacks and insider threats.
Database Activity Monitoring Is Evolving
Read the analyst report and learn how you can leverage the core capabilities of a DAP solution for better database security.
Establishing a Strategy for Database Security is No Longer Optional
The options for securing increasingly valuable databases are very broad and deep, and can be confusing. This research provides an overview of three...
All Careers White Papers
Careers Webcasts
Distributed Database Security with Real-time Monitoring
View this demo and learn how IBM InfoSphere Guardium database activity monitoring can help protect your sensitive data in distributed DBMS environments with...
InfoSphere Warehouse Packs Demo
These flash modules make warehousing more tangible and relevant to business users through detailed explanations of the InfoSphere Warehouse Packs.
Delivery Management -- Extending Lifecycle Management
Date: Wednesday, June 20, 2012, 1:00 PM EDT

Siloed organizations continue doing the wrong things and doing things wrong, leading to increased costs,...
Leverage automation today to reduce IT complexity
Date: Tuesday, June 5, 2012, 2:00 PM EDT

Whether your B2B complexity is caused by multiple technologies due to M&A, business or application specific...
Redefine Expectations in the Data Center
Need to do more with less? Watch this video to learn how HP ProLiant Gen8 servers can help your business deploy servers three...
All Careers Webcasts
IT Salaries 2012
2012 Salary Survey

How does your salary compare with your peers? Find out using our Smart Salary Tool.

Newsletter Sign-Up

Receive the latest news test, reviews and trends on your favorite technology topics

Choose a newsletter
  1. View all newsletters | Privacy Policy
IT Jobs