IT Jobs May Get Left Behind in Recovery

jobless recovery

Once IT spending begins again , companies in need of tech workers will likely turn first to consultants and outsourcing companies before they take on full-time staff. Whether this decision contributes to what’s often called a “jobless recovery” will depend on where the work is going — onshore or offshore.

This view is gleaned from surveys and analysts trying to understand what’s next for tech job market. In the hunt for clues about the future, some of the best evidence about what’s head may be with companies yhat are already doing well. Take Cognizant Technology Solutions Corp., for instance.

It’s been a miserable year for many IT companies, but Cognizant, in its most recent quarter, reported a revenue gain of 13% to $776.6 million, boon growth for most companies. One reason for this can be explained by one of its customers, Emmaus, Penn.-based Rodale Inc., publisher of Prevention, Men’s Health, and Women’s Health magazines.

By hiring Cognizant, Rodale CIO Ken Citron was able to cut costs for infrastructure, hardware, help desks and networks by 15% on annual basis. The IT savings was achieved, in part, because Cognizant remotely manages some of the systems offshore.

About three quarters of Rodale’s IT infrastructure employees became Cognizant employees, and the remaining either received severance or moved into some other role . While Rodale didn’t want to disclose the number of employees affected by the change, Citron said the change is allowing the compay to focus on its core needs, especially its customer-facing applications and services.

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One response to “IT Jobs May Get Left Behind in Recovery

  1. Pingback: IT Jobs May Get Left Behind in Recovery « Work Exposed the Blog |

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