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Infotech jobs in US down 44 per cent

BS Bureau

Its official now: the slowdown in the US economy will restrict fresh job creation in the information technology (IT) industry.

According to a survey released on Tuesday by the Information Technology Association of America, the US companies expect to create 900,000 new information technology jobs this year - 44 per cent fewer than last year on account of the slowing economy.

The surveyors spoke over telephone with managers of 685 companies, including 191 in computer and communications products and services, and 494 users and clients.

Companies appear ready to rein in hiring plans and are being cautious in the uncertain economy. Experts have also predicted that employers will become more demanding in terms of productivity so that corporate performances do not suffer.

Last year, the study found companies were expecting to create 1.6 million new IT jobs.

"The downsizing in the US economy has undoubtedly affected the demand for IT workers this year," said ITAA president Harris N Miller. "

Skilled technology workers - still a highly desirable commodity for IT and non-IT companies - are facing more cautious hiring practices than the "irrational exuberance", added Miller.

The survey reassures that though the demand has diminished, there exits a small demand for new talents.

Of the 900,000 new workers whom the companies expect to hire, 425,000 IT positions will go unfilled due to lack of qualified applicants. Getting the right candidate at the right cost continues to be a challenge for industry both in the US and in companies servicing US clients from locations in India, said the CEO of an IT company while commenting on the study.

In certain categories, hiring has by no means halted and demand still far exceeds supply.

ITAA estimates that about 10.4 million people work in IT-related jobs. The survey says technical support workers remain most in demand, and those jobs are expected to be a fourth of all new positions created in the next year. Last year, however, hiring managers cited a need for three times as many such workers.

Demand is also up in the areas of enterprise systems and network design and administration.

Some segments have witnessed shrinkage and specialists in these categories will come under increased pressure to improve productivity and retain jobs. Demand has decreased in technical writing, digital media and database development and administration. Companies even are scaling back on Web development--with demand expected to drop 25 per cent during the year, the study found.

Small companies with fewer than 50 employees or government and non-profit organisations were not contacted for feedback. Microsoft, Intel, Cisco Systems, ITT Educational Services and Knowledge Workers were among the sponsors of the survey, which ITAA admits has a margin of error of 3 percentage points.

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