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Sunday, March 4, 2007

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How offshore outsourcing continues to devastate the tech sector

Robert Weisman reports today in the Boston Globe on how the local IT job market is doing three years after offshore outsourcing devastated the tech sector:

Five years after the dot-com bust ravaged the technology industry, erasing tens of thousands of jobs in Massachusetts, the "Help Wanted" signs have been pulled out of storage. State figures released Thursday show several high-tech job categories growing at more than triple the rate of overall employment over the past 13 months.

The job market hasn't returned to the feverish state of the 1990s, and fields such as telecommunications have been slower to recover. But multiple job offers are no longer rare for managers and consultants, software developers, researchers, website designers, marketing and sales professionals -- even newly minted college graduates -- knocking on the doors of resurgent high-tech companies. Especially hot are Internet businesses riding the new wave of digital commerce.

And, on the flip side, employers are struggling for the first time in years to hire technology talent. Many are paying signing bonuses ranging from $15,000 to $40,000, often structured as tuition forgiveness, to lure masters in business administration graduates from top schools.

More junior employees are finding themselves in demand, too. Internet consulting firm Molecular Inc. offered a job to a woman who interviewed at its offices in the Arsenal on the Charles River last month. She is a software engineer relocating to Boston from Alabama.

"She flew up for a few days, interviewed with three companies, all referrals from friends, and had job offers from all three the next week," Molecular managing director Patrick Heath reported in an e-mail last month to Ralph Folz , chief executive officer of the Watertown company. Heath concluded the e-mail, which Folz shared with the Globe, by observing, "The market is crazy right now." (Late last week, the coveted software engineer accepted Molecular's offer.)

New data from the Massachusetts Department of Workforce Development show the number of non-farm jobs in the state increased 1.2 percent since the start of 2006. At the same time, employment grew 3.7 percent in computer systems design, 4.5 percent in technology management and consulting, and 4.9 percent in research and development, fields encompassing many of the employees being snapped up by Internet companies. "The hiring market is tougher than it's been since 1999 or 2000," said Folz, recalling the last boom.

posted by Dan on 03.04.07 at 07:06 PM

Comments:

It may be a while before this spreads to the rest of the country - and remember the recesion ended about 5 years ago.

posted by: save_the_rustbelt on 03.04.07 at 07:06 PM [permalink]

Qwest still hiring India staff
Even as layoffs keep mounting at U.S. locations
By Kimberly S. Johnson
Denver Post Staff Writer
Article Last Updated: 03/05/2007 11:48:06 PM MST

Qwest Communications is expanding and hiring employees in the high-tech hub of India, as its U.S. workforce declines.

Bangalore, India-based Qwest Software Services has been operational since 2003 and currently has 570 workers, or 1.5 percent of Qwest's workforce, focused on internal technology projects.

Last month, Qwest laid off 10 percent of its information technology workforce, including 100 in Denver. During 2006, Qwest shed a total of 1,300 jobs.

According to the Qwest Software Services website, the company is looking to fill openings in eight types of positions, such as technical architect and application engineer.

Qwest spokesman Bob Toevs said the Bangalore workforce allows the company to complete IT projects faster, by having computer developers working around the clock.

posted by: save_the_rustbelt on 03.04.07 at 07:06 PM [permalink]

Some 60% of the workforce would like a different job, but no one can find anyone? Not looking? Or so pathetic no one wants to work for them?

posted by: Lord on 03.04.07 at 07:06 PM [permalink]

I used to be pretty involved in the College Democrats, and freshman year, we heard from a local politician who was running for city council head or something along those lines. She was the wife of a professor here at Binghamton, and because she was involved in politics already, she had a pretty decent grasp of the issues, both relating to the university and the city itself. She talked about how she had an active role in helping the university secure land for an innovative technologies complex, which help bring money to the university and to the area through the sciences and the people they would attract. This seemed to be pretty smart, and from what I've seen, places like Boston, Silicon Valley, Madison, Wisconsin and Ann Arbor, Michigan, all of which are near universities prove this could be the case.

So I am asking you, is there any sort of study that sheds any light on this, one way or another?

posted by: Brian on 03.04.07 at 07:06 PM [permalink]

Ummmm, David?

Most of that piece you linked described vicious competition for newly-minted MBA's from top schools. I believe precisely one software engineer was mentioned. She recieved three offers but the salary level was not mentioned.

Recently I accepted an offer at a start-up company in the UK to be a 'senior software engineer'. I am happy to report it is working out well for both parties with one notable little anomaly: the salary is about 75% of 1999 levels.

So I guess I wouldn't describe it as a boom just yet - no matter how well the MBA's are doing....

posted by: Don Stadler on 03.04.07 at 07:06 PM [permalink]

Ummmm, David?

So I guess I wouldn't describe it as a boom just yet - no matter how well the MBA's are doing....

posted by: Don Stadler on 03.04.07 at 07:06 PM [permalink]