News and numbers from US IT world

From http://www.offshoringtimes.com/

IT outsourcing, especially offshore outsourcing has brought about various changes in both outsourcing nations as well as vendor nations who do the outsourcing work. In US today, IT outsourcing has become one of the hot topics of discussion. While pros and cons of offshore outsourcing are discussed with vigour, surveys to determine its real impact is conducted from time to time. And through all this, the average US IT professional remains a confused self.

Though the whole offshore Outsourcing rigmarole has hardly affected the IT jobs in US, it has resulted in general paranoia among those working in IT related jobs. InformationWeeks (IW) National IT Salary Survey of 10,425 IT professionals found that even though nearly half their companies dont outsource at all and fewer offshore IT work, most of them worry that offshoring will reduce career opportunities even though the moneys still good in IT. Base salaries are barely edging up, but bonuses have total pay on the rise, and tech unemployment last quarter fell below 3%--which in economic terms is about zero.

However, most admit that though they are confident of riding out their uncertain and intensely demanding jobs smoothly, they wont wish it on their kids. With 3.47 million IT people employed today in US, tech employment has risen above the hiring boom that peaked in 2001, according to data from the Bureau of Labor Statistics. Despite that, 64% of IT pros interviewed in IW survey said that outsourcing is eliminating IT jobs, and nearly 60% believe the trend is hurting morale. IT pros are unsure about outsourcings effect on pay. While just 25% thought that existing salaries will be reduced, 49% predict lower salaries for new hires. Which roughly means that though most US IT professionals are confident of their own job security and career growth, they are unsure of future opportunities.

Tony Roberts is typical IT professional. Though generally wary of outsourcing and offshoring he doesnt foresee any trouble for himself. He is an application development project manager for a specialty retailer that buys its major applications and count on internal staff for the integration of those applications, supplemented occasionally by contractors. "I dont feel vulnerable to outsourcing," Roberts says. "Weve got a lean organization. Not a lot of value would be added by outsourcing."

InformationWeeks survey reveals that there are many who think like Roberts. Only 12% of staff and 9% of IT managers feel insecure about their jobs. Half of managers and 42% of staff feel strongly secure, while the rest feel somewhat secure. Among managers and staff alike, feelings of job security are markedly stronger now than they were in IW salary survey of two years ago.

The survey further says that, this year IT salaries are edging up, with total median compensation rising 3% for staffers to $73,000 and 4% for managers to $99,000. Even though, it is too early to say whether offshore outsourcing is seriously detrimental to tech employment and wages in US, a watch can be kept on whether pay rises as unemployment plunges, or whether the threat of offshoring is holding IT salaries down.

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