Layoffs, Closures, Outsourcing, Returning Retirees Dampen IT Salaries

<strong>Park City, Utah &mdash; Jan. 5 </strong><br />Janco Associates has just released its January 2009 IT Salary Survey, and the prospects look grim for IT professionals. A perfect storm driven by the recent worldwide economic downturn, company closures, layoffs, cost cutting, outsourcing and retirees who have had to return to the job market because of the lost value of their investment portfolios, have created a surplus of IT talent. <br /><br />The CEO of Janco Associates, 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."<br /><br />The January 2009 IT salary survey reflects the market conditions of today and a summary of Janco&#39;s findings are:<br /><br /><ul><li>Many companies have instituted hiring and spending freezes. This has been augmented by extensive layoffs, outsourcing, bonus reductions and elimination of IT contractors. This has decreased the demand for IT professionals and in some cases lowered wages, with higher priced positions being eliminated.</li><li>Companies have reduced the benefits provided to IT professionals. Though benefits such as health care are available, IT professionals are now paying a greater portion of that cost.</li><li>Flexible hours and work schedules are now not as available as they were before the recent economic conditions changed.</li><li>With outsourcing, lower bonuses and the recent layoffs there has been a decrease in the mean compensation paid…



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