- Sixteen roles that were a part of the IT department in 2010 will move to multifunctional shared services and/or business units.
- 88 percent of IT-related roles will be able to be filled by employees without technical backgrounds.
- A third of today’s IT roles will see declines of 80 percent or more in the number of positions required.
IT Market Report: Trends in Pay, Job Creation and Who Needs What Skills
Companies in Silicon Valley are going to nearly endless lengths to keep critical employees. The most dramatic example: Google paying upwards of $150 million in retention bonuses to a couple of “indispensible” employees. MarketWatch says salaries are rising so quickly that shareholders and investors are growing concerned. Higher salaries increase the cost of benefits and health insurance, adding pressure to businesses just as they’re trying to gain profitability or establish a positive record with shareholders. The console game business has been called “recession-proof” and one of the most stable sectors in technology, but pressure from social media and mobile gaming is taking a toll on its workforce. More and more consumers would rather play social and mobile games than pay several hundred dollars for consoles. Sales of consoles such as Sony's PlayStation 3 and Microsoft's Xbox 360 have been weak, so companies like Activision, Disney Interactive and THQ have all conducted layoffs. They’re also shifting focus to social games, where sales have been growing more quickly and the profit potential is greater. Zynga, producer of the immensely popular Mafia Wars and Farmville, plans to double its 1,500-person workforce this year. A survey published by Silicon Valley Bank indicates more startups will create jobs this year than they did in 2010. Among the 375 surveyed companies (206 in software/Internet, 63 in hardware, 83 in life sciences and 23 in clean tech), 83 percent have plans to hire during 2011, up 10 points from last year. More than 25 percent say hiring remains one of the biggest challenges they face. Among the factors: high compensation packages and the area’s high cost of living. Most organizations – 80 percent – don’t have the talent they need to fill technical roles expected to emerge by 2015. Rather than offer training or coaching to existing employees, they plan to fill openings with new hires or outsource work to consulting firms. Some of the changes anticipated by the Corporate Executive Board: