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Things are looking up -- sort of -- for technical professionals in 2007.
That’s the message from a variety of reports and forecasts about technology employment and salary trends. The studies offer cautiously encouraging news for techies, who have faced uncertain career prospects and lackluster job growth in recent years.
“It’s great to see demand up, and it’s a great time to be in IT right now,” says Brian Gabrielson, national practice director at staffing firm Robert Half Technology.
What IT Employers Are Seeking
Does this mean the boom is back? Not quite. The reports do not predict breakneck growth or rampant hiring. Offshoring remains a significant concern, especially for programmers and tech-support workers. Moreover, executives have not forgotten the lessons of the dotcom bust. Hiring is happening, but selectively.
“Just because we have more demand doesn’t mean it’s all about the skills,” Gabrielson says. “Companies are being very picky.”
Indeed, along with technical expertise, candidates must demonstrate business knowledge. “It’s almost as if the technology is assumed nowadays,” says Gabrielson, noting that techies who understand return on investment and other business concepts have the strongest prospects in today’s hiring environment. “Clients are looking for that business acumen in their hires.”
That perspective is echoed in an October 2006 report from PricewaterhouseCoopers (PWC), which states that in IT, the “battle for talent is about to become even fiercer as companies search for the hybrid employee: Workers who excel at collaboration, innovation and managing change.”
The State of the 2007 IT Job Market
Here’s a look at some of the findings from a variety of recent reports on IT employment:
• Software developers will see the biggest increases in starting salaries in 2007, with base compensation expected to rise 5.1 percent to range from $60,250 to $94,750 annually, according to the Robert Half Technology 2007 Salary Guide. Industries expecting strong demand for IT professionals in 2007 include financial and business services, insurance, technology, healthcare and manufacturing, the report says. The report also notes that CIOs are increasingly concerned about applicants’ knowledge of business fundamentals, with 41 percent saying the importance of such knowledge has increased over the last five years.
• According to Computerworld’s 2006 salary survey, IT workers saw their pay increase an average of 3.1 percent in 2006, with a number of positions -- namely network architects, Web developers and e-commerce directors -- seeing increases of 4.8 percent or more. Median base salaries varied widely, depending on the position and level of experience. For senior management, the median base salary was $115,000, while middle managers earned $85,000 and staff/technical positions paid $68,000.
• Hot IT job titles for 2007 include project manager, business analyst, program manager and security analyst, according to staffing firm Vedior North America’s 2007 Employment Forecast. The report states that the company’s Sapphire Technologies IT division received 59 percent more job orders for IT professionals in the first nine months of 2006 than it did during the same period in 2005. Management-level IT workers are in particular demand, while many entry-level support positions are being filled offshore.
• Companies expect IT talent to become even more difficult to find in the next three years, according to PWC’s report. Of the technology executives PWC surveyed, 71 percent believe competition for industry talent is more challenging in IT than in other industries, while 83 percent say “engineering knowledge with collaborative and creative thinking is in short supply.”
• Certifications are losing their value, while noncertified IT skills are gaining in importance, according to the Hot Technical Skills and Certification Pay Index from Foote Partners, an IT workforce benchmarking firm. The value of IT certifications dropped 1.2 percent in 2006, while pay for noncertified IT skills, such as software development, increased 7 percent from a year earlier, the index reports.
• The Hudson Employment Index reflects an increase in worker confidence from a year earlier, edging up to 115.8 points in November 2006 from 101 points in November 2005. The index reports that 21.4 percent of IT workers were worried about losing their jobs in November 2006, down considerably from the 32.1 percent reported in the same period in 2005.
