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IT Salaries Impacted in the Downturn |
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The
prospects look grim for IT professionals. A
perfect storm driven by the recent world
wide economic downturn, company closures,
lay-offs, cost cutting, outsourcing, and
retirees who have had to return to the job
market because of the lost value of their
investment portfolios have created a surplus
of IT talent. The CEO of Janco Associates,
Victor Janulaitis said, "The job market for
IT professionals is one of the worst that I
have seen since the late 1970's. There is a
surplus of IT talent and companies are in a
cost cutting mode. The dot com bubble was a
cake walk compared to this job market."
The January 2009 IT salary survey reflects
the market conditions of today and a summary
of Janco's findings are:
-
Overall
compensation for IT professionals is
down for the first time since the
dot-com bubble
-
Hiring
demand is the lowest that we have seen
it in the 15 plus years that we have
conducted this study
-
Companies are reducing the number of IT
contractors that they using
-
Fringe
benefits are being reduced by companies
-
Supply
of IT professionals is at a very high
level due to lay-offs, deferred
retirements, and individuals trying to
re-enter the IT job market because they
can not find other jobs or have found
they can not stay retired with the
decrease in value of their retirement
accounts.
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