Close
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Menu
Search
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management
    • Networking

    IT Staffing Cuts in 2010 Mirror 2009, Study Says

    By
    Don E. Sears
    -
    June 23, 2010
    Share
    Facebook
    Twitter
    Linkedin

      Remember all the talk of the recession being over and companies being cautiously optimistic about hiring in technology? A report on IT spending released in June finds a whole lot more caution than optimism right now.
      Over 40 percent of respondents from 200 companies in the United States and Canada said they are reducing IT staff in 2010, according to technology research group Computer Economics, which has been reporting on IT spending and staffing trends for 21 years. In the group’s 2009 edition of this report, 46 percent of companies said they were reducing staff.
      “This is more downbeat than we had anticipated,” Frank Scavo, president of Computer Economics, said in a statement.
      The report, which surveyed respondents in the first quarter of the year, also found operational budgets of technology departments to be increasing at slower rates that signal the recession has not ended. Less than half of companies (45 percent) are increasing operational budgets in 2010. Computer Economics said it finds this is what happens in a prolonged recession.
      “For IT operational spending, the recession is still here,” Scavo said. “Overall, fewer organizations are reducing capital spending this year and the reductions are smaller than last year. We take this as an optimistic sign, again, that the worst may be behind us.”
      As eWEEK’s Jeff Burt reported in May, research company IDC expects capital spending on IT infrastructure to grow 3.8 percent this year to $1.47 trillion, with hardware spending increasing the most at 6.4 percent, followed by software at 3.1 percent and services at 1.5 percent.
      If you’re looking for a silver lining to the Computer Economics report, there are a few things to note. First, 28 percent of companies surveyed reported that they have been given budget to hire additional staff. Secondly, 58 percent said they do not foresee further budget reductions.
      Yet, there is still worry among IT management: Almost 30 percent of respondents said they expect to have to trim their budgets in the remaining months of 2010.
      In terms of sectors, government IT spending is showing a 5 percent decline, as are retail (1.5 percent decline) and discrete manufacturing (at a 1.4 percent decline). Conversely, health care, commercial banking and process manufacturing are all seeing operational spending gains in the 3 percent range.
      This is not the first report to note a deeper sense of concern about IT spending and staffing in 2010. Foote Partners, which tracks demand in skills, certifications and technology spending priorities, recently reported the fluctuations in the market to be on an unprecedented scale.
      “We’re seeing 30 percent to 40 percent volatility in our surveys of premium pay for certified and noncertified skills, which is defined as the percent of the 438 skills we survey that change in market value-up or down-every three months,” David Foote, chief research officer and founder of Foote Partners, said in a June 7 statement. “And that’s unprecedented in our tracking going back to 1998. Typical quarterly volatility falls in the 14 percent to 19 percent range.”

      Avatar
      Don E. Sears

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      Chris Preimesberger - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      eWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Big Data and Analytics

      How NVIDIA A100 Station Brings Data Center...

      Zeus Kerravala - November 18, 2020 0
      There’s little debate that graphics processor unit manufacturer NVIDIA is the de facto standard when it comes to providing silicon to power machine learning...
      Read more
      Apple

      Why iPhone 12 Pro Makes Sense for...

      Wayne Rash - November 26, 2020 0
      If you’ve been watching the Apple commercials for the past three weeks, you already know what the company thinks will happen if you buy...
      Read more
      eWeek


      Contact Us | About | Sitemap

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Property of TechnologyAdvice.
      Terms of Service | Privacy Notice | Advertise | California - Do Not Sell My Information

      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×