Janco Associates
has just released its January 2009 IT Salary Survey for the US, and
prospects look grim for IT professionals.
The recent
worldwide economic downturn, company closures,
lay-offs,
cost cutting and
outsourcing has created a surplus of IT talent. The situation
has been made worse by retirees returning to the job market because
their investment portfolios have lost value.
Janco Associates CEO Victor Janulaitis said: "The job market for
IT professionals is one of the worst that I have seen since the
late 1970s. 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 mean compensation for CIOs in large enterprises is now
$168,839 (a 6.11% decrease) and $163,211 (a 4.97% decrease) in
mid-sized enterprises. Much of this is due to the loss or reduction
of bonuses and fringe benefits.
The mean compensation (including bonuses) for all IT executive
positions surveyed is now $142,914 (a decrease of 1.2%) in large
enterprises and $126,021 (a 4.57% decrease) in mid-sized
enterprises.
The January 2009 IT salary survey shows:
Many companies have frozen hiring and spending. This has been
augmented by
extensive
lay-offs, outsourcing, bonus reductions and eliminating IT
contractors.
Companies have reduced benefits to IT professionals. Though
benefits such as healthcare are available, IT professionals are now
paying a greater portion of the cost.
Flexible hours and work schedules are less common since
economic conditions changed.
With outsourcing, lower bonuses and the
recent
layoffs, the mean compensation paid to IT professionals has
decreased.
For the second time in less than ten years, retirements are
being put off because of the downturn in the stock market and the
reduction in savings available to support IT professionals as they
retire.
Hiring demand is down for IT executives (especially in mid-sized
enterprises), while
proven CIOs are in high demand in large enterprises.
Consultant Janco Associates' January 2009 IT salary survey
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