Just read a new from eWeek about job.Here are some interesting points:
At this post-recessionary point in time, what is happening in the larger business climate that is keeping IT jobs from stronger hiring?
Employers have been moving very deliberately toward managed services models and various new forms of outsourcing and co-sourcing IT labor, and away from traditional staffing models. It’s been a very, very tough transition for them, having operated for years in a staffing model that encouraged full-time hires with contractors and consultants filling in a lot of the gaps. The end game right now is (and was, prior to the recession), ‘How can we achieve greater agility, flexibility, reaction time and speed of execution?’ not ‘cost cutting,’ despite recessionary pressures to reduce headcount.
The truth is that the recession has been beneficial in the sense that it has pushed many employers over the edge who had been dragging their feet about SAAS [software as a service], PAAS, IAAS, Whatever-AAS, as alternatives for the FTE [full-time employee] staffing model.
Even more to the point, the focus has been much more on skills acquisition than job acquisition. Employers aren’t looking for people per se but for skills, and how they acquire those skills is less important than speed in getting them. Major staffing decisions have already been made on major initiatives, short projects, operational infrastructure. Employers have a good idea of what skills and competencies are needed, acquisition has been budgeted. A frantic skills search has been under way and it’s easier and faster to find contractors and consultants to step in versus the time it takes to search for and process a new hire. Or simply consider purchasing it as a service (MS is a $33 billion market globally, moving to a $66 billion market by 2013).
Speed of execution is the prime directive. Hiring FTEs not only takes too long, but it is a tougher sell to management during an economic recession and recovery. So what is happening in the larger business climate that is keeping IT jobs from stronger hiring? Very little. They aren’t hiring because it takes too long to do find and process new hires, it costs them more to do that, and the marketplace is too brutally competitive right now to give competitors a lead time. Speed to market with the right product is key, and it has to do what you advertise it will do. It may take several tries, which is why labor force agility is key. Nobody wants to waste [money] making a new hire who may have a very short shelf life if the business decides to change directions quickly.
If 2009 was the year of cost cutting, what is 2010?
Getting back to business, staying competitive, launching new products to meet new customer demands. Also governance.
Read it for more.