How has the credit crunch effected the IT industry
Turnover in the IT industry is quite high and this is often reflected in the amount of jobs in IT that are advertised online. From a recent survey, The IT Job Board, www.theitjobboard.com specialists in jobs in IT found from a survey of 1,000 candidates that 62% of the respondents have been in their current role for two years or less.
Industry experts expected the amount of IT jobs in London for instance to increase dramatically due to the current state of the economic market, with many companies slashing their IT headcount and their spending. However, despite the recent economic woes, IT jobs in London being advertised have increased as well as the salary expectation in comparison to the same IT jobs in London being advertised pre- credit crunch.
In addition, 69% of respondents to the survey felt that their present company's position in the market was very secure. To reinforce this, 70% of the respondents to The IT Job Board survey expects their salaries to go up over the next year although 54% expected it to rise only slightly. A mere 2% predicted their salaries would go down, reflecting their faith in the security of their companies.
It has also been reported by to the Celre Computer Staff Salary Survey that the basic IT salary has risen by 4.8 percent in the year to May 2008, while basic IT salaries plus bonuses are up 5.7 percent.
Mark Crail, Celre managing editor, said in a statement: "IT staff have managed to defy the downward trend of the economy so far. Salaries are still rising faster than inflation and there is little indication that redundancies are becoming any more widespreadÍ This shows companies are still finding it difficult to recruit for jobs in IT and retain IT staff with the skills they need."
However, in contrast, many IT workers in the City of London fear that with the combined effects of outsourcing, offshoring and the credit crunch, it may translate to scarce opportunities for entry-level financial IT workers.
Many experts in the banking and financial industry believe that due to current economic, running in- house teams will be too expensive and slow down bringing products to market. Reports also suggest consolidation of technologies supporting the financial IT industry, which could mean job losses.
Another problem facing the UK market comes from recent intelligence that has calculated almost two-thirds of 4,967 UK IT professionals surveyed (66%) are looking for employment opportunities outside the UK. This is despite IT jobs in London offering one of the most competitive salaries amongst most other cities world-wide, IT candidates are attracted to other benefits jobs in IT offer.