The telephone survey of 400 hiring managers from IT and non-IT companies nationwide found that predicted demand for hiring IT workers has reached a low of 493,000 positions over the next 12 months - down from 1.6 million at the start of 2000 - and less than one-half of the predicted 1.1 million positions needed at the start of 2002. Sixty-seven percent of those interviewed said they thought hiring demand would stay the same or decline over the next twelve months.

Companies are also moving more positions overseas, with 12 percent of IT companies and 3 percent of non-IT companies saying they have already opened up overseas operations, according to the survey. Large IT companies were most likely to say they've made this move - 22 percent have already moved work offshore. Additionally, 15 percent of IT firms say they will, or are undecided about, moving jobs overseas in the next twelve months, while 4 percent of non-IT firms say the same.

Sixty-seven percent of respondents already outsourcing IT work overseas say that jobs most likely to be moved offshore are programming or software engineering positions, followed by 37 percent moving network design, and 30 percent moving web development jobs.

The survey placed the size of the U.S. IT workforce at 10.3 million, with hiring and terminations amounting to less-than-one-percent growth during first quarter of 2003, with the IT workforce growing by 86,000, which is below fourth quarter 2002 growth, which added 97,000 jobs, the slowest quarterly growth in 2002.

"If the demand for IT workers is an indicator of business growth, our survey results are not encouraging," says ITAA President Harris N. Miller. "The fact that firms have dramatically scaled back force reductions may indicate that they are properly staffed to handle existing and new business. There are several bright points, such as companies adding technical support workers at the highest levels and the fact that most workers are not seeing pay cuts."

Links

• Information Technology Association of America