Hiring Freeze Over as Information
Technology Industry Rebounds
How Employers and Candidates are Reinventing IT
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Executive Summary
In late August at a bankers’ conference in Jackson Hole,
Wyoming, Federal Reserve Chairman Ben Bernanke said,
“The pace of recovery in output and employment has slowed
somewhat in recent months.”
This is welcome news for an industry that has suffered a
tumultuous history in the past decade — from the tech bubble
implosion nearly 10 years ago to the more recent “deep
freeze” of technology in 2009 — a period when the IT sector
suffered tremendous job loss and weakened investment in the
sector as a whole.
While it was a less than favorable economic forecast, it is not
all doom and gloom. Certain industries are rebounding at a
faster rate than others — Information Technology (IT) being one
In fact, employers that cautiously saved money over the last
of them. In fact, CDW IT Monitor, a bimonthly indicator of the
two years are prepared and ready to invest — and many of
direction, momentum and mindset of the U.S. IT marketplace,
them will place their investment “bets” on IT. A separate report
recently released results from a survey of
by CDW IT Monitor found that smaller
1,070 IT private- and public-sector
businesses are following in the footsteps
In fact, employers that
decision makers and found that there
of midsized and large corporations by
cautiously saved money over investing in IT. While initial spending is
has been an uptick in temporary and
full-time hiring in the IT industry. In
not all going toward hiring, the adage of
the last two years are
addition, as of August 2010, 67 percent
prepared and ready to invest. “build it and they will come” rings true.
of IT executives at large organizations
Twenty-seven percent of business owners
said they planned to increase technology
plan to increase their IT budgets over the
budgets over the next six months (up five percent since
next four to six months. Thirty-seven percent plan to buy new
January) and 37 percent anticipate hiring IT staff in the
hardware in the next six months (up from 34 percent in
1
second half of 2010 (an 11 percent increase from 2009).
February), and 50 percent plan to purchase software (up from
49 percent in February). Finally, 19 percent will implement
The same report also noted that 52 percent of respondents
discretionary IT projects.4
said that IT investment “helps a lot” when it comes to financial
performance.2 In being able to directly link IT investment to
Build it and they will come
positive financial performance, companies now have a
Percent of business owners planning IT spending
powerful argument for robust IT investment — both IT platforms
Increase IT budgets over next six months 27%
and technology infrastructure development, as well as more
aggressive hiring.
Buy new hardware over next six months 37%
Further support for IT / technology’s link to financial
performance can be found in KPMG’s Technology Industry
Survey of 130 CEOs and other C-level suite executives in the
hardware and software computer industry. These executives
predicted that the biggest drivers of revenue growth over the
next three years will be new technologies such as cloud
computing (54 percent), mobile applications (51 percent),
client computing/virtualization (43 percent) and advanced
analytics (42 percent).3 Among questions asked of executives
was if their current strategic focus was on cost cutting or
investing for long-term growth. Seventy-three percent
indicated they are investing.
Purchase software over next six months 50%
Implement discretionary IT projects 19%
Thomas Richards, president and chief operations officer of
CDW IT Monitor said, “Despite recent economic volatility, many
IT decision makers have remained cautiously optimistic about
budgets and anticipated IT investment. As we head into the
second half of the year, that optimism is beginning to extend
to IT hiring expectations in some sectors. While this positive IT
job outlook is still emerging and hasn’t yet translated across
all sectors of the IT marketplace, it remains an encouraging
indicator of future growth.”5
1 Dennis McCafferty, “Workplace Slideshow: CIO IT Hiring Plans Open Up in 2nd Half 2010,” CIO Insight, 16 August 2010, http://www.cioinsight.com/c/a/Workplace/CIO-IT-Hiring-Plans-Open-Up-in-2nd-Half-2010-565456/.
2 Ibid.
3 KPMG Technology Industry Survey (217 July 2010) “US Technology executives see improving sector fueled by growth outside the country”. Press Release. http://www.kpmg.com/SG/en/PressRoom/Pages/PR20100727.aspx.
4 Rieva Lesonsky, “Survey Says: Businesses Spending More on Marketing, Tech,” AOL Small Business, 11 June 2010, http://smallbusiness.aol.com/2010/06/11/survey-says-businesses-spending-more-on-marketing-tech/.
5 Dennis McCafferty, “Workplace Slideshow: CIO IT Hiring Plans Open Up in 2nd Half 2010,” CIO Insight, 16 August 2010, http://www.cioinsight.com/c/a/Workplace/CIO-IT-Hiring-Plans-Open-Up-in-2nd-Half-2010-565456/.
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In order to remain competitive in today’s diverse IT
marketplace, it is imperative that employers are prepared and
have the right teams in place with the right skill sets to meet
changing and challenging market conditions. This requires
engaging proven IT consultants and staff augmentation experts
— because for most companies, IT and related technology is
the engine that supports the business.
fortifying their bottom line — allowing companies to focus on
the strategic business, while outsourcing non-strategic
business functions, such as IT support. But this won’t happen
overnight. In the near term this trend will result in an uptick in
consulting and temporary hires whose expertise spans across
the IT sector.
Another change is the evolving profile of today’s coveted IT
When it comes to hiring decisions in this environment,
professional-for-hire. Long gone are the days when IT
companies both large and small are seeking seasoned IT
departments existed in the shadows of the back office with
candidates with enhanced skill sets– those nimble individuals
little or no communication with the front office. Today’s leading
whose knowledge and experience can be
companies are looking for IT
applied across multiple projects and
professionals who can assume
Today’s leading companies
platforms. For example, a healthcare IT
leadership roles. Simply having an IT
professional with IT security credentials
“background” is not enough; business
are looking for IT
is considered highly desirable. Similarly,
analysis and the ability to make
professionals who can
cloud computing, green IT and
overarching decisions are the traits
assume leadership roles.
healthcare IT in general are some of the
needed (and valued) to survive and
hottest, most in-demand technology
thrive in today’s IT job market.
areas today. Those candidates who have kept their skills and
Interestingly, this trend is opening the door for more wellexpertise fresh and relevant are being snapped up by
rounded professionals — successful candidates today are
companies looking to meet the demands of this evolving IT
security experts, vendor relationship managers and business
industry.
process specialists who can analyze and present business
data. To this end, there is a learning curve among IT
Changes Happening in the IT Sector
professionals who are sizing up the new face of the market to
To best understand the evolution of the IT industry one needs
see where they fit. Those with 20 or 30 years experience no
both a short and long view. IT has always been a fastlonger list “seasoned” or “veteran” on their resume opting for a
changing, fluid field. Over the next 10 years, however,
fresh approach with words like “versatile” and “adaptable.”
estimated changes will be so systemic that all IT professionals
will be impacted. Change in the IT field is happening as a
result of several factors, including the introduction of new
technologies and the changing needs of companies, as
business increasingly becomes more global and virtual, and
that change is happening now.
Take for example advances in recent technology and how they
are impacting IT positions. Nearly every six months, graphics
chips are doubling in capacity which equates to a onethousand fold increase in capacity over a five-year period. Why
is this significant? As these advances integrate with mobile
computing and virtualization, IT departments will morph and a
new identity will be created removing the need for certain
in-house IT positions.
Specifically, many companies currently operating in-house
help desks, network and desktop support, LANs and telecom
departments will make the decision to relegate these
all-important components to third parties. And this evolution
is for good reason as it frees up companies to focus on
Trends in technology and the changing roles of IT professionals
aren’t the only factors at play in the evolution of this sector.
Recent legislation is also playing an active role in crafting the
“future face of IT.” Such is the case with President Barack
Obama’s Recovery Act — which supports numerous
technology-based initiatives and will create a groundswell of
job opportunity in this space.
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The U.S. Government is currently investing in scientific research
and advances in technology — including modernizing
transportation (high speed rail), fortifying the renewable
energy sector, advancing medical research and building a
platform to enhance the private sector’s ability to innovate.
And it is calling on corporations to help with this mission.
Motorola, for example, received approximately $50 million
from the Administration to develop a wireless public safety
broadband network in the San Francisco Bay Area — the result
of which will expand access to technology and help create
jobs in this region in the near term.
Similarly, Microsoft Corporation recently
announced that it will invest up to $499
million to locate its latest generation
data center (Gen4) in Mecklenburg
County, Virginia. Using modular
technology and advanced cooling
mechanics, the new data center will be
Microsoft’s most advanced.
The Changing Face of IT and its Impact
on Jobs in Demand
Across all industries, IT is changing at such a rapid speed that
professionals are both concerned and confused when
considering the future. This is underscored by findings from a
recent Computerworld survey of 465 IT professionals who were
asked to predict where the industry would be in 2020.6 When
respondents were asked if they think their current IT job would
exist in 2020, 57 percent said yes but 26 percent said the
position would significantly change. A more shocking response
was that almost half — 48 percent
— said that the IT department will be a
According to the U.S.
dramatically different operation.
Department of Labor, jobs
Specifically, 62 percent said the IT
related to technology are
department will be become two-tiered
with some people embedded in
forecasted to be the
business departments while more
fastest growing segment
technically focused people would be
through 2013.
stationed in smaller, dedicated IT
departments.7
And it’s not only jobs-related legislation that is affecting the IT
sector. Sweeping overhauls in other industries — like
healthcare reform — are also contributing to change and new
needs in IT. Recent healthcare legislation is affecting
healthcare systems’ management of electronic medical
records, leading to the need for new kinds of technology
expertise in this industry. From an industry-wide standpoint,
the Computer Technology Industry Association predicts
approximately 70,000 new IT positions will be created in the
healthcare sector over the next several years.
With an uptick in IT investment, companies are again in
competition and are feeling the pressure to evaluate existing
infrastructure and determine the short and long term view of
respective IT platforms. This is a fast-moving field. As a result,
antiquated, slower ways of working require upgrading.
“Technology efficiency” is the new industry buzz phrase.
Companies are connecting with IT consultants for
recommendations on staff augmentations that will meet
objectives while stretching the still coveted “recession”
investment dollar.
Despite these uncertainties, IT professionals have reason to be
optimistic. According to the U.S. Department of Labor, jobs
related to technology are forecasted to be the fastest growing
segment through 2013. High on the list is information
cyber-security positions as companies are constantly trying to
stay one step ahead of hackers to protect data. To this end,
regulatory compliance, audits and security professionals are in
demand. But there are a number of other IT positions also
poised for expanded growth in the near future. Specifically, the
Department of Labor has indicated in-demand IT positions will
include: computer software engineers; computer support
specialists; network and computer systems administrators;
data communications analysts; desktop publishers; database
administrators; computer systems analysts; medical records
and health information technicians; computer and information
systems managers; and computer and information scientists
and researchers.
One reason why we see new/emerging positions and jobs in
today’s evolving technology environment is because of
companies’ focus on virtual technology platforms (e.g., Citrix
and VmWare) as ways to enhance the efficiency of existing
infrastructure. This investment in infrastructure technology is
creating jobs for IT professionals who are experienced with core
systems, security, disaster recovery, compliance and analysis.
6 & 7 Julia King, “IT Careers 2020: Cloudy Days Ahead” Computerworld 23 August 2010, http://www.networkworld.com/news/2010/082310-it-careers-2020-cloudy-days.html?page=2.
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And corporate IT investments today are not limited to just
infrastructure but are being felt in the recruitment field, as well.
Leading IT recruiters are branching out on the way they recruit
in this cutting-edge field, beginning to harvest top talent from
social networking websites and other relevant avenues, with
interviews being conducted with increasing frequency via
Skype and other teleconferencing mediums. The recruitment
landscape is changing all around but perhaps nowhere as
quickly as in the technology field.
The trends happening from an industry perspective align well
with what Modis is seeing from its client demand. Over the
past year, as the economy has been struggling to recover, the
most valued positions that companies have been looking to fill
are Front End Developers for both .Net and Java, Business and
Data Analysts, and Project Managers. As companies look to
reinvest in technology and begin to expand hiring in the IT
sector, many are looking at temporary staffing roles as the
most strategic way to rebuild and prepare their IT teams. This
model is giving companies the flexibility they need to ensure
their IT infrastructure is keeping up with trends and the
constant flux of technology advances. And often, the
individuals who fill temporary IT roles bring with them a vast
portfolio of expertise and knowledge that can be highly
valuable to an organization.
Conclusion
While the job market is predicted to recover — just at a slow
pace — IT will no doubt be a key sector to watch in terms of
“early thaw” for job opportunities. Organizations that are able
to identify and secure top talent in this space will be ahead
of the curve.
Traditional back office IT departments will continue to fracture;
the remaining IT roles will require a higher level of proficiency.
As virtualization gains more ground, vendors and service
providers will realize an increased need for candidates versed
in business analytics, operations research, data mining, data
integration, reporting and statistics, risk management and
security.
In order to meet all-important — and constantly evolving - near
term and future IT goals, organizations need a strategic mix of
internal staff, outside consulting resources and project
outsourcing. This approach will ensure the right fit across
people, solutions, environment and objectives.