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Report: Mission-Critical IT Jobs Stay Home, Not Outsourced

The furor over the offshore outsourcing phenomenon is exaggerated, and top mission-critical IT jobs are staying in the U.S., according to a new report on IT staffing and compensation.

"Outsourcing is a little bit of a myth," said Maria Schafer of the META Group in an interview. "In point of fact, outsourcing had been happening for sometime." She said that, while the best and most valuable IT positions are generally staying put, a slowly improving economy hasn't yet been strong enough to overcome relatively stagnant hiring. "It's going to be another six months before we see any real [hiring] vigor."

Schafer--who is a senior program director of META's Executive Directions Advisory Service and who authored the report on IT staffing and compensation released Tuesday--said IT employees are still being paid as much as 20 percent more than non-technical personnel at their organizations. More than 75 percent of the companies surveyed for the report said they pay IT employees higher salaries, and 45 percent said they pay premium salaries for critical skills, particularly in wireless, security, and data-management fields.

"Experience," she said, "that's what continues to sell." She added that Internet-related specialists are in short supply, particularly for those with expertise in application development, Java-application management, and networking. However, demand for e-commerce skills dropped slightly in this year's survey--15 percent versus 22 percent last year, and 25 percent in 2002.

Skills in high demand in IT enterprises that normally aren't outsourced are for specialists in building out IT infrastructure, including for database-management systems and Web infrastructure. Other categories in demand include customer relationship management (CRM) and enterprise resource planning (ERP.) "Application-development skills also continue to be highly sought after, as are Oracle and Java application-management and networking experience," Schafer said. "The consistency with which these skill sets are mentioned is a strong indicator that not enough is being done to develop these capabilities."

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