IT jobs will drop in 2009

Posted on July 27, 2008. Filed under: Blogging |

IT staff jobs are at increasing risk — both for contractors and in-house workers — according to a survey of top CIOs by Goldman Sachs & Co. released last week. Global services companies will also feel the pinch because of the slowing economy.

A second survey showed that basic PC and network hardware, as well as professional services providers, would bear the largest proportion of spending cuts. It also showed that CIOs planned to emphasize economizing measures over investments in new technologies, with cloud computing emerging as the last item on their priority lists, despite the hype around it.

IT contractors to bear the brunt of cuts

“Demand for discretionary IT projects dropped to its lowest point” in the 41-study history of the Goldman Sachs staffing survey, which asked 100 managers with strategic decision-making authority (mainly CIOs at multinational Fortune 1,000 companies) about their IT staffing plans for 2009.

Consultants, hardware targets of spending cuts

The second survey by Goldman Sachs looked at 2009 spending plans based on type of IT projects. This survey also showed cuts are in the offing.

The spending survey indicated CIOs see the “greatest potential for cost reduction in IT in the area of networking equipment.” A full 47% of the respondents said the most likely area where spending would be slowed would be on purchases of personal computer systems, servers and storage.

Spending cuts won’t be limited to equipment: 42% of the CIOs indicated that “they are reluctant to spend money on third-party professional services.” This is in keeping with the decline in interest for discretionary IT projects and could indicate more of a reliance on in-house IT employees.

Cloud computing may get buzz, but it won’t get spend

The CIOs indicated that server virtualization and server consolidation are their No. 1 and No. 2 priorities. Following these two are cost-cutting, application integration, and data center consolidation. At the bottom of the list of IT priorities are grid computing, open-source software, content management and cloud computing (called on-demand/utility computing in the survey) — less than 2% of the respondents said cloud computing was a priority.

One reason for the low priorities of grid computing, open-source software and cloud computing may be that CIOs and business executives don’t understand their value. “They require a technical understanding to get to their importance. I don’t think C-level executives and managers have that understanding,” King said. (source: computer world)

Advertisements

Make a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Liked it here?
Why not try sites on the blogroll...

%d bloggers like this: