Employment in Computer Information Systems
Employment opportunities are expected to be good in the IT industry as demand for computer-related occupations increases due to rapid advances in computer technology, continuing development of new computer applications, and the growing significance of information security. (U.S. Bureau of Labor Statistics) 92% of all IT workers are in non-IT companies, 80% of which are in small companies. (Information Technology Association of America)
Some Interesting Facts:
Take a look at these facts about the IT Industry:
- The IT industry includes such products and services as software, telecommunications, wireless, Internet, hardware, peripherals, and computer and data services.
- Software and hardware segments of the industry accounted for 12.57% of total GDP in 2001.
- The commercial software industry of 2003 was a $175 billion economic engine with 2.3 million jobs worldwide.
- IT is both a distinct industry, and, according to the U.S. Bureau of Labor Statistics, a subset of Manufacturing, Transportation, and Business Services.
- 92% of all IT workers are in non-information technology, companies including companies engaged in health care services, real estate, insurance, and financial services; 80% of them are in small companies outside the IT industry.
- Over the last 30 years, an investment of $11 trillion has been made in information technology globally. The major achievements have been in productivity, manufacturing efficiencies, and education applications.
- Seven of the top thirty fastest growing occupations are projected to be IT-related.
- The computer systems design and related services industry is expected to be one of the top 10 fastest growing industries in the economy, adding more than 600,000 jobs between 2002 and 2012.
- Employment in the telecommunications industry is expected to increase by 7 percent between 2002 and 2012.
- All seven of the fastest growing IT jobs (Network Systems and Data Communications Analyst; Computer Software Engineer - Applications; Computer software Engineer - Systems Software; Database Administrator; Computer Systems Analyst; Network and Computer Systems Administrator; Computer and Information Systems Manager) require at least a bachelor's degree.
- Nine percent of CIOs at U.S. companies plan to increase their IT hiring.
Employment Outlook:
Let's look at the microcosm of IT professionals. According to former U.S. Secretary
of Labor Robert Reich, U.S. businesses will need 21 million new IT workers in the
next five years. However, a shortfall of at least 4 million workers is predicted.
The Computing Research Association says the number of students choosing computer science
as a field of study decreased 39% from 2000 to 2004. The dot-com bust and fears of
an insecure future have led students to pursue other professions.
Companies exacerbated the problem during the recent recession by laying off large
numbers of IT workers. Many of these people left the profession because they couldn't
find another job. Companies also stopped hiring entry-level workers who would start
basically as apprentices and be ready to take over IT roles when older workers retire.
When the gray hairs retire, who will do the work? Smart companies are starting now
to prepare for the future IT workforce.
There is good news, however. The future workforce likely will include many older
workers who don't want (or can't afford) to retire completely. AARP reports that
nearly 70% of workers aged 45 to 74 say they want to continue working in some capacity.
An innovative employer might be able to retain workers by offering reduced work hours,
a flexible schedule or lighter responsibilities.
Smart companies are starting to bring in new recruits so they can begin preparing
to step into jobs with more responsibility. A study commissioned by the Society for
Information Management indicates that companies are still looking to entry-level hires
to fill technical positions such as system administrator, help desk worker or programmer. Although
these are the types of jobs that are typically outsourced, they serve a purpose in
developing the next generation of workers.
Many companies are establishing formal or informal mentoring programs to help less-experienced
workers learn the ropes from those with more experience. Mentoring helps knowledge
pass from one person to another.
The competition to hire and retain skilled IT workers is fierce, and the situation
is likely to get worse before it gets better. When the gray-hairs log off for the
last time, companies don't want to be scrambling for help.
In-Demand IT Occupations
The information sector, with a projected 5.2-percent average annual output growth
rate, is the second fastest growing sector in the economy. Providing publishing,
Internet, cable, and telecommunication services, real output for this sector is expected
to increase by $624.1 billion between 2004 and 2014, to reach $1.6 trillion by 2014.
Accounting for a third of the information sector’s employment and 40.0 percent of
its nominal output in 2004, telecommunications is this sector’s dominant subsector.
However, as companies seek cost reductions, the twin pressures of industry consolidation
and price competition are expected to cause this subsector’s projected employment
losses. Additional factors effecting employment are expected to be improved equipment
reliability and productivity-enhancing technologies, which will increase the data
transmission capacity of telecommunication networks. Employment, therefore, is projected
to decline by 0.7 percent annually, to 975,000 jobs in 2014 - a loss of 68,000.
However, as the distinctions between cable and satellite TV, and between wireless
and wireline telephone systems become less obvious, traditional telecommunications
companies will continue to offer more services, such as high-speed Internet access,
video-on-demand, and Internet telephony services. Wireless providers will also continue
to increase capacity and enhance services, such as phones that also function as computers.
These trends are expected to result in the telecommunications subsector being the
10th largest in terms of output growth. Even though this category’s output is projected
to grow by a little more than half its historical 6.1 percent, real output is expected
to expand by $203.4 billion, to $667.0 billion in 2014.
Software publishing, adding jobs at an annual rate of 5.7 percent between 1994 and
2004, was the economy’s third fastest growing industry. It is also expected to be
the Nation’s second fastest growing employer, with a projected annual growth rate
of 5.3 percent. Firms are expected to continue to invest heavily in productivity
enhancing software that facilitates electronic commerce and ensures secure systems
of communication. In addition, consumers are anticipated to continue their demand
for educational and entertainment software. Adding 161,000 jobs to reach 400,000
by 2014, projected employment growth is expected to be tempered, relative to historical
rates, by cost-cutting initiatives that outsource routine tasks offshore. Providing
the backbone to a largely technology-based economy, however, this industry’s real
output is expected to reach $281.2 billion by 2014, reflecting an economy-leading
increase of $180 billion and a 10.8-percent annual rate from its 2004 level - the
third fastest in the economy.
Internet and other information services, providing a wide variety of services from
Internet service providers and Web search portals to data processing and hosting,
is a group of information related subsectors that are projected to experience healthy
growth. Specifically, this group is expected to be among the economy’s fastest in
terms of employment and output growth - increasing by 2.5 percent to 600,000 jobs
in 2014, up from 470,000 in 2004. The collective real output of these subsectors
is projected to grow at an aggressive 8.5 average annual percent, and reach $271.8
billion in 2014. The continued growth of general Internet use, the expansion of new
Web services, and the ongoing need to absorb the unending amount of new content -
coupled with the rapid demand to upgrade networks that improve performance and enhance
security - are expected to act as positive catalysts for this group.