IT Jobs To Get Shaft In Jobless Recovery: Analyst

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It workers always seem to be treated as nothing more than a cost center than anything else. With the ethereal nature of IT work, it is obviously easier to send these jobs overseas where slave labor is abundantly available.

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By Patrick Thibodeau of IDG

Once IT spending begins again, companies in need of tech workers will likely turn first to consultants and outsourcing companies before they take on full-time staff.

Once IT spending begins again , companies in need of tech workers will likely turn first to consultants and outsourcing companies before they take on full-time staff. Whether this decision contributes to what’s often called a “jobless recovery” will depend on where the work is going — onshore or offshore.

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This view is gleaned from surveys and analysts trying to understand what’s next for tech job market. In the hunt for clues about the future, some of the best evidence about what’s head may be with companies yhat are already doing well. Take Cognizant Technology Solutions Corp., for instance.

By hiring Cognizant, Rodale CIO Ken Citron was able to cut costs for infrastructure, hardware, help desks and networks by 15% on annual basis. The IT savings was achieved, in part, because Cognizant remotely manages some of the systems offshore.

About three quarters of Rodale’s IT infrastructure employees became Cognizant employees, and the remaining either received severance or moved into some other role . While Rodale didn’t want to disclose the number of employees affected by the change, Citron said the change is allowing the compay to focus on its core needs, especially its customer-facing applications and services.

Will Cognizant and ACS help with a recovery or hurt it by shifting work overseas? The only IT spending category that is expected to finish 2009 in the black is outsourcing, with a 2.1% gain, said Forrester Research Inc., in a report released Tuesday. If that increase seems scant, consider that Forrester is expecting IT spending to decline overall by 9.3% for the year, led by a hardware spending plunge of 15.5%.

“You probably won’t start to see hiring for permanent staff until the middle of next year,” Bartels said, but employers will hire consultants.

Original full articled hosted at ComputerWorld IDG

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