IT Services Succumb to Recession

Payrolls among IT services firms experienced their biggest one month decline in more than five years but employment levels at these companies remained higher than they were a year ago.

According to the employment report issued Friday by the Bureau of Labor Statistics, payrolls at so-called computer systems design and related services firms fell by 2,900 to 1,428,500 in December. It’s the biggest drop since August 2003, when payrolls at IT services firms fell by 3,400. It was only the second decline in IT services payrolls since May 2005; this past March, the sector saw payrolls dip by 2,200 workers.

The loss of employment in the IT services sector shouldn’t be surprising considering the battering the economy is taking. Yet, IT services firms are performing much better than the rest of the economy. In 2008, employment among IT firms grew by 2.7% or 37,100. As a comparison, overall nonfarm employment plunged by 524,000 in December and nearly 2.6 million for all of 2008, a 1.9% drop.

As the recession continues, expect to see payrolls at IT services firms to continue to contract, but only modestly. Businesses rely on IT to function, and in an economic turndown, companies more likely will turn to IT services firms to keep their operations running before they hire full-timers to take over.

Photo: AP

IBM to Obama: $30B in Stimulus Will Create 90,000 Tech-Tied Jobs

IBM CEO Samuel Palmisano advised Obama aides last month that $30 billion in government investments to expand broadband access, digitize healthcare records and enhance the electrical grid could create more than 900,000 U.S. jobs.

According to a report in The Wall Street Journal, IBM research shows:

Investing $10 billion in broadband networks to provide high-speed Internet access to areas that lack it, would create 498,000 new jobs in a year. Investing $10 billion in computerizing health-care records and other health-related IT would create 212,000 jobs. The government investment would come on top of $30 billion in public and private investment in health-care IT already slated for this year

IBM also calculated that $10 billion invested in equipment that allows electric utilities to monitor their transmission infrastructure more closely would create 239,000 jobs. Such technology can tell operators when transformers are failing or wires are overloaded.

If Not an IT Career, Then What?

Here's a book for professionals tired of working in IT or can't find a good job as an information technologist.

Janice Weinberg's “Debugging Your Information Technology Career” (Elegant Fix Press) identifies 20 other careers that use skills IT professionals offers. While most of them aren't usually thought of as computer jobs, a press release states, computer proficiency is a key qualification for success in each. Among her suggestions:

An architect's knowledge of best practices in systems design would be a strong asset in a technology due diligence position.

A business analyst who guided logistics staff in defining their IT requirements would be a credible candidate for a strategic alliance management position at a company marketing logistics software.

A network operations center manager who upgraded a change-management function would bring a valuable customer's perspective to a role as a change-management software product manager.

A network security administrator could become a broker or underwriter of cyberliability insurance.

A software engineer who supported customer relationship management applications could parlay that experience into a position selling CRM software.

A premise of the book, or at least the press release touting it, is that IT jobs are vanishing in this recession. No doubt, many IT pros find themselves out of work. But government data consistently shows that employment opportunities are greater in IT than in nearly any other occupation class.

If anything, what this book demonstrates is how closely linked IT is with the functioning of business. IT skills are business skills, and this know-how—whether in an IT or some other corporate job—will be needed more than ever.

On Job Interview, IT Professionals Advised to Show Strong Suit

Want to capture that next IT job? Many CIOs suggest they’re impressed by those wearing formal business suits to job interviews.

According to a survey conducted by the tech employment service Robert Half Technology, more than one-third of 1,400+ American CIOs say a business suit is the most appropriate interview attire. About one-quarter of the respondents cited khakis and a collared shirt as proper apparel as well as tailored separates. Says Robert Half Technology executive director Katherine Spencer Lee:

“Employers want to see that job candidates have made the effort to dress appropriately for the work environment. While a suit isn’t the best choice for every interview, it’s better to err on the side of overdressing versus appearing too casual.”

The CIOs were asked, What is the most appropriate interview attire for someone interviewing for an IT job with your company? Their responses:

Formal business suit, 35%

Khakis,collared shirt, 26%

Tailored separates, 24%

Jeans, polo shirt, 9%

Other, 6%

Lee suggests that when in doubt, candidates should ask an insider who works at the company to get advice on the employer’s work style and preferred interview attire. If you don't know anyone, just ask the person who will interview you.