Study finds big rise in job cuts planned at IT shops

[ChromeFoundry]

Source: Computerworld

But the post dot-com crash was worse for IT workers
By Chris Kanaracus
July 13, 2009 11:06 AM ET

IDG News Service - Forty-six percent of North American IT shops are planning to cut positions this year, up from 24% last year, with one-quarter planning to slash staff by 10% or more, according to a newly released study by Computer Economics.

The findings indicate widespread doubt among IT executives that the recession will end soon.

Only 27% intend to increase headcount, and another 27% plan to keep staffing levels flat, the study also found.

The Irvine, California, research firm also found that the majority of IT budgets are either flat (17%) or decreasing this year (38%). Forty-five percent of respondents reported their budgets will grow this year.

Although dire, the numbers do not necessarily set a precedent.

In 2002, following the 2001 recession, only 36% of IT shops said budgets would increase, according to Computer Economics. "This indicates that the current recession, though reportedly more severe than any since the Great Depression, is actually not as acute in terms of IT spending as the 2001 recession," the report states.



Read more: http://www.computerworld.com/s/article/9135464/Study_finds_big_rise_in_job_cuts_planned_at_IT_shops

[OhioChick]

1. Just in time to raise that H-1B cap!

Planned legislation could include a way to raise the cap on H-1B visas

Computerworld - WASHINGTON -- Sen. Charles Schumer (D-N.Y.) plans to introduce a comprehensive immigration reform bill by Labor Day that seems certain to include a way to increase the H-1B cap. By introducing the bill in the worse possible economic climate, and then citing Labor Day as his deadline for introducing it, you could almost argue that Schumer is egging on his opponents. But that's not new for him. Among the people he has enlisted to help him is Federal Reserve Chairman Alan Greenspan, who testified this year at an immigration committee hearing that the cap protects U.S. workers from global competition, creating a "privileged elite."

http://www.computerworld.com/s/article/9135438/Analysis_The_next_H_1B_fight_begins_by_Labor_Day

Schumer siding with Greenspan?

[ihavenobias]

2. As if Greenpan hasn't done enough to screw us all in the last few decades. n/t

[Spoutwell]

3. I notice that 4 out of 5 tech requiters that contact me are Indian

wonder why that is?

[MadMaddie]

4. They outsource to Indian companies and hire American workers

at lower wages.

[Spoutwell]

5. yeah, the ones i am talking to tell me the job requires a visa not the H-1B

i think they are geared to go after H-1B's but some jobs require an actual visa so in those rare cases they go outside their normal circle... but i was just surprised that there were so many of them operating here.

[MadMaddie]

6. I am in the Seattle area and it is bigger than you think

I am in the IT industry and I have plenty of friends (all hues) that can't find a job but the HB1-Visa folks keep coming in and taking jobs or the jobs are outsourced to India. It's appalling.

[doodadem]

9. Because we American recruiters

gave up on I.T. recruiting several years ago when the bottom fell out. I had already done IT for 15 years, but finally said, if I don't diversify, I'm out of business. So got into all types of engineering, and pharmaceutical/medical device recruiting.

Very nostalgic for the Clinton years......I made a ton of money in IT back then. Now, barely getting by, and sometimes, not even that.

[notadmblnd]

7. it was policy when I was let go 5 years ago to eliminate 10% of

of the IT staff annually. I worked for a major computer services company and they were doing it for a few years before then.

[DallasNE]

8. How Soon They Forget

The last time around there were economic reasons for what happened in IT. First was the dot.com bubble bursting. That generated massive layoffs. Second, there was Y2K which cause heavy IT resources to handle that problem, which meant there was pent up demand for new Web based applications. When things got caught up the IT cuts followed. The recession was a distant 3rd as a cause for those layoffs.

This time around IT staffs were still quite lean so these layoffs are coming right out of the IT muscle. We are already seeing overtime and the next wave of cuts are several weeks off. The consequences will show up in computer IT systems having more down time while also having more bugs making it into the production environment.

As an IT professional of more than 40 years I am in a position to both see and understand what is happening. Oddly, we are even firing sales staff to cut back on new business coming in the door. So much for economy of scale opportunities. This is just plain goofy.