Tech job outlook remains soft

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Research released May 5 by the Information Technology Association of America suggests that, failing a dramatic turnaround in the national economy, a recovery in the tech sector in 2003 will most likely continue to be a jobless one.|ret||ret||tab|

The telephone survey of 400 hiring managers from information technology and non-information technology companies nationwide found that predicted demand for IT workers has reached an historic low of only 493,000 positions over the next 12 months down from 1.6 million at the start of 2000 and less than one-half of the 1.1 million positions predicted at the start of 2002. |ret||ret||tab|

Sixty-seven percent of those interviewed said they thought hiring demand would stay the same or decline over the next 12 months. |ret||ret||tab|

Companies are also moving more positions overseas, with 12 percent of IT companies and 3 percent of non-IT companies saying they have already opened up overseas operations. Large IT companies were most likely to say they've made this move 22 percent have already moved work offshore. Additionally, 15 percent of IT firms say they will move, or are undecided about moving jobs overseas in the next 12 months, while 4 percent of non-IT firms say the same. |ret||ret||tab|

Respondents already outsourcing IT work overseas say that jobs most likely to be moved offshore are programming or software engineering positions, followed by moving network design, and moving Web development jobs. |ret||ret||tab|

The ITAA annual survey placed the size of the U.S. IT workforce at 10.3 million, growing by less than 1 percent or 86,000 jobs during first-quarter 2003. While that is good news, it is below fourth quarter 2002 growth, which added 97,000 jobs, the slowest quarterly growth in 2002. |ret||ret||tab|

"If the demand for IT workers is an indicator of business growth, our survey results are not encouraging," said ITAA President Harris N. Miller. "The fact that firms have dramatically scaled back force reductions may indicate that they are properly staffed to handle existing and new business. There are several bright points, such as companies adding technical support workers at the highest levels and the fact that most workers are not seeing pay cuts."|ret||ret||tab|

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Other key findings: |ret||ret||tab|

IT companies in the Midwest and West are most likely to send jobs overseas. |ret||ret||tab|

Seventy-four percent of companies say they have not changed compensation for IT workers in the past 12 months. Of companies taking action, only 8 percent lowered pay.|ret||ret||tab|

91 percent of companies were able to meet or exceed their hiring plans in 2002. For non-IT companies, both hiring and terminations were down roughly 25 percent in the last 12 months. |ret||ret||tab|

IT companies appear to be more likely to cut wages than non-IT companies. |ret||ret||tab|

Reductions by IT companies were down almost 50 percent in the last 12 months, while hiring was static.|ret||ret||tab|

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