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Professional Development

2 Posts tagged with the employment tag
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One question we are frequently asked by the media is: What is happening to data center jobs? As the reasoning goes, cloud computing, automation, outsourcing, data center consolidation and virtualization are conspiring to render data center occupations extinct. The actual data, however, tells a more complex story.

 

When viewed as a percentage of total IT staff, data center staffing levels appear to have leveled out, following a decade-long decline, and may even be on the rise again. The reason for this is not entirely clear. It may be that we are at the beginning of a very different trend: the build-out of data centers to accommodate even greater computing workloads. Or, it may be that recession-driven cost-cutting has caused a temporary disruption in the longer-term trends.

 

At Computer Economics, our annual “IT Spending and Staffing Benchmarks”  study shows that data center functions survived the global recession just fine. And during the past few years, “just fine” is about as positive as it gets. System administrators, programmers and engineers, as a group, were at the front of the line when it came to job protection. Staffing levels among this group rose from 8.5 percent of the typical IT staff in 2008, to a healthy 10.2 percent this year. Some of this rise is attributable to a decline in overall IT staffing levels. A reduction in the programmers or network personnel in an organization, for instance, would cause data center personnel to look bigger as a percentage of total staff. But that is not the total explanation.

 

It may be too early to see the full impact of current data center technology shifts on IT employment. During the global business recession, the outsourcing of data center work seemed to suffer a setback as organizations hunkered down, took fewer risks and focused on eliminating all but the most necessary functions, including the very managers needed to reengineer IT processes. Now that IT spending is recovering, organizations may begin in earnest to shed data centers in favor of cloud-based resources. Today’s IT organizations are certainly investing in virtualization of all kinds, and use of Software as a Service (SaaS) is rising briskly.

 

Change is slow, however, and many of these same trends contribute to improved data center productivity — fewer data center workers are managing more servers, terabytes of storage, and applications. That only enables enterprises to absorb more computing resources. It’s called the law of supply and demand. As the cost of operating data centers declines, organizations can afford to invest in more data center capacity. It is little wonder, then, that system support personnel make up a rising portion of the IT staff today. IT organizations need people who know how to build and support the flexible infrastructure that can embrace the cloud while maintaining critical resources in-house.

 

We could, in fact, be entering a new golden age of data center employment where productivity gains will be present endless new opportunities for those with the right skills to manage and build virtual, flexible infrastructure and cloud-based resources.

 

For the time being, the future remains cloudy, but promising for data center employment.

 

 

John Longwell is VP of Research at Computer Economics , an Irvine, Calif.-based IT research firm, founded in 1979, that provides metrics for IT management. He is a member  of Smart Enterprise Exchange and can be reached on the site.

 

 

 

For additional Smart Enterprise Exchange content on workforce and employment trends see the Professional Development  track and the following:

 

Global Workforce Update

 

 

Creative IT Hiring Strategies for Net Gen Workers

Women in IT: 12 Tips for Advancement

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While U.S. government agencies struggle to compete with private industry for new IT talent, the recruitment situation and its remedies vary greatly around the world. Here is a roundup of a few recent reports tracking global employment trends:

 

  • Traditional forms of compensation are not the only way to attract and retain employees, according to the Kelly Global Workforce Index released in August. Private employers are also looking for other means to motivate workers. For instance, Gen Y (aged 18-29), as well as Gen X (aged 30-47) are much more likely to be on some form of performance-based pay than those in the Baby Boomer generation (aged 48-65), according to the report. Among those not already on performance-based pay, Gen Y workers —also known by some as the Net Generation or Millennials-- are the most attracted to it.

 

Additionally, greater ownership in private business can motivate employees to perform at a higher level, with 60 percent of the Kelly survey respondents saying profit-sharing would be a big incentive. Kelly surveyed approximately 134,000 people in 29 countries across North America, Europe and the Asia-Pacific region.

 

The idea of giving employees a “slice of the pie” is gaining in appeal. Almost 40 percent of respondents say that some of their compensation is tied to individual, group or company performance targets. Of those who do not have such an arrangement, more than a third would like to see this practice adopted by their employers.
  
Geographically, 65 percent of those in the Asia-Pacific region say that profit sharing would motivate them to “perform more productively” — that’s higher than in North America and Europe. Aside from salary, the benefit that rates as most important to Asian employees is training, followed by flexible hours, health benefits, time off and retirement benefits.

 

In Europe, 78 percent say employers should take some responsibility for employee health and well-being, compared to 82 percent in Asia-Pacific.

 

  • At the high end of the market, hiring seems to be picking up slightly. Another recent survey, conducted by the Association of Executive Search Consultants (AESC) shows that executive-level recruitment this year is rising more than it has in the past 15 months. North America seems to be emerging from the recession “first and strongest,” according to the report, followed by Asia-Pacific and other emerging markets. Europe is lagging, with flat results from quarter one to quarter two this year.

 

  • Yet when viewed through another lens, the global labor market is worsening. In describing its newest report, the United Nation’s International Labour Organization (ILO), says that the world economic crisis has spurred a record increase in youth unemployment.

    “Global youth unemployment has reached its highest level on record, and is expected to increase through 2010,” the ILO said in the report, ILO Global Employment Trends for Youth 2010. The study was issued to coincide with the launch of the U.N. International Youth Year August 12.

    ILO says that “of some 620 million economically active youth aged 15 to 24 years, 81 million were unemployed at the end of 2009 — the highest number ever. This is 7.8 million more than the global number in 2007. The youth unemployment rate increased from 11.9 percent in 2007 to 13.0 percent in 2009.”

 

In most regions, young women continued to be the hardest hit by unemployment. Only in what the ILO calls “developed economies” and the European Union were young males harder hit. In particular, unemployed youths in the U.K. and Spain seem to be giving up their employment search in the greatest numbers.



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