IT morale drops to all-time low

by Guest Contributor | Jun 10, 2004 1:28:00 PM

Tags: Guest Contributor

Takeaway: Despite economic improvement, lack of job growth in the industry is dampening spirits.

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By CNET News.com Staff
CNET News.com

Morale among IT workers has dipped to an all-time low, even though demand for certain skills is rising, according to a new study from Meta Group.

Seventy-two percent of the 650 organizations contacted by the research company said the continuing lack of job growth in the industry is dampening the spirits of IT staff. More than half of the companies said they lost staff this year.

Some of the companies are paying attention to retaining key performers, because doing so is less expensive than replacing staff. But the combination of fewer employees, fewer dollars for projects, and the perception that there is no need to focus on retention will not help productivity, the research company said.

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Eighty-one percent of respondents, compared with 86 percent last year, said they hired staff this year. However, the overall loss of employees seems to be slowing, according to Meta Group.

The survey showed that skills in some areas, such as database management systems and Web infrastructure, are still hot this year, as companies continue to build internal IT infrastructure and feel the need for better management of the huge volumes of data they're accumulating. Also in demand are software development skills, in areas such as Oracle and Java application management and networking.

The fact that the skill sets being favored now are the same as in recent years, according to Meta Group, indicates that enough is not being done to develop these abilities.

The survey did find that IT workers' salaries are at least 20 percent higher than their non-IT counterparts'. The research company attributed this in part to three factors: Companies are willing to pay more to retain key contributors; there is a strong market for experienced individuals with critical skills; and the job market is looking up.

Companies are continuing to turn to offshore outsourcing, because it offers substantial savings on labor, with average salaries that are up to 60 percent less than in the domestic market. But hurdles such as language barriers and cultural and political differences will prevent a major increase in the use of offshore labor, even if it makes steady progress, Meta Group said.

For 55 percent of respondents, India is expected to be the major outsourcing destination for the next three to five years. But China’s ever-lower cost of labor will become more attractive in the near future, Meta Group said, because the communist country is beginning to relax its difficult, bureaucratic environment.

Print/View all Posts Comments on this article

How is morale in your office?Newsletter Editor  | 06/10/04

No one notices...Alias_IT  | 06/10/04

Yeah, but you should have known...Jrats_Revenge  | 06/10/04

Couldn't agree with you more...TechinCA  | 06/10/04

I disagreePsiFiScout  | 06/17/04

IT Managerrdivilbiss  | 06/17/04

No one knows everythinghk_batman  | 06/20/04

Clueless people in here.Digi-Tal  | 07/20/04

AgreeTAGGAT  | 07/20/04

The beatings will stop when morale improveshermang@...  | 07/20/04

NOTtoy1080  | 06/10/04

NOT?Jrats_Revenge  | 06/10/04

It's Downward Spiralpaperclip@...  | 06/11/04

Worker Moralerensaun  | 06/17/04

rensaun 'gets' it1stcyberian  | 06/17/04

Agreedmongodad@...  | 07/20/04

Wrong ??mullymull4@...  | 07/20/04

Yep -- Its a Thankless JobTomSal  | 06/10/04

IT under Financecpycc  | 07/20/04

Missing Pointdmwoodcock@...  | 06/11/04

It goes both ways...jp5472  | 06/17/04

Why does this always end up this way!jet1415  | 06/17/04

The ROOT of the problem!jp5472  | 06/24/04

RE Root of problemtajreboa  | 07/20/04

Amen to that!!biblestudy98@...  | 07/01/04

Please, please, please leave Bill alone!!biblestudy98@...  | 07/01/04

Yes, we are in a service industry...TechnoOntologist  | 07/20/04

bottom linehalonsx@...  | 09/10/04

Many Facetsaschumm@...  | 07/20/04

Extremely well put!jp5472  | 10/14/04

Nature of the Beastrbncs@...  | 06/18/04

So TrueWisdomRocks  | 07/20/04

Job Security?mitchshrader@...  | 07/22/04

I agree, no-one noticeswind rider  | 06/10/04

Again...Jrats_Revenge  | 06/10/04

Just one problemStill_Rockin  | 06/10/04

There are no problems; only opportunities...careed  | 06/10/04

relationshipsODJ  | 06/11/04

Possible misunderstandingStill_Rockin  | 06/25/04

I couldn't agree moreMissKris  | 07/20/04

Bunch of whinersJayMiller25  | 06/11/04

I disagree - not whiningTomSal  | 06/11/04

yes...it is our jobhalonsx@...  | 09/10/04

Praise come from withinRR1  | 06/11/04

Bad team managementPoggle  | 06/18/04

Poggle, This is very good. I agree with ...RyanNSIT  | 07/12/04

omigosh!keybored  | 06/10/04

I just had this exact conversationjet1415  | 06/17/04

Managements FaultJimHM  | 06/11/04

Totally AgreeMurraytheMonster.com  | 06/11/04

Thought you'd like to know.husp1@...  | 06/16/04

Poor Moralesenthil9@...  | 06/17/04

Good IT is invisiblepamo  | 06/17/04

When I was in the Army I was in charge of a pla...JDW1340  | 06/17/04

DId you?Prefbid II  | 07/20/04

Morale is at an all time lowwstern@...  | 06/10/04

Reality Checkadmin@...  | 06/10/04

Reality Check?ron.sitnick@...  | 06/10/04

Supreme Reality ChecktheSage  | 06/10/04

Good Pointseric.brown@...  | 06/10/04

EXACTLY!TomSal  | 06/11/04

cycle brakeing brakes contactRR1  | 06/11/04

Not me...Jen920  | 06/10/04

NOTtoy1080  | 06/10/04

I like what I do and get paid well!jet1415  | 06/28/04

Supreme Reality checktsmith@...  | 06/10/04

I don't even know what to say!jet1415  | 06/28/04

Hey Reality Checktsmith@...  | 06/10/04

No Sh!TAlias_IT  | 06/11/04

All businesses spend $$ on stupid sh*tgawiman@...  | 06/17/04

Intro of IThalonsx@...  | 09/10/04

Pretty Bad HereLockout  | 06/10/04

yupdoogal123  | 06/10/04

yupdoogal123  | 06/10/04

Don't even think of an IT career.W.E.  | 06/10/04

The unemployed force has a say as wellTatty  | 06/10/04

I agree Tattypacoscreech  | 06/17/04

IT MANAGER AND NOT PAID FOR ITkphillips@...  | 06/10/04

Feeling your painMissKris  | 07/20/04

Have a back-up planrgod8855  | 06/10/04

Internal and External factors BOTHJames Schroer  | 06/10/04

morale at all time lowdavid.planchon@...  | 06/10/04

What morale?davryn@...  | 06/10/04

Morale, or User Stupidit????Geeen  | 06/10/04

Been there!Old_sys_admin_guy  | 06/10/04

hats off to you guystsmith@...  | 06/10/04

There is no office to worry aboutmiller-zauner  | 06/10/04

I still like it a lot better than Loggingadmin@...  | 06/10/04

Sales gets praise...IT is a necessary evil!dawsey@...  | 06/10/04

MoraleRich-Having. Fun.  | 06/10/04

AMEN to that!!cshargro@...  | 12/27/04

A+apotheon  | 12/31/04

Those of us left have sense of humor...Dilbert-Tom  | 06/10/04

Low - very LowJimHM  | 06/11/04

Study: Morale at all-time lowjmottl  | 06/11/04

IT is uprocky530@...  | 06/11/04

Particial agreementElama  | 06/11/04

You think you have room to complain!gigglebytes  | 06/15/04

Your Reality is Hard to BelieveYourAverageManager  | 06/20/04

bakedhusp1@...  | 07/19/04

Find a lawyerPrefbid II  | 07/20/04

Sounds like you're in lawsuit country...selkiedee  | 07/20/04

It’s all in your attitudeAndyMah  | 06/15/04

Well, you have a vote !j.g.camp@...  | 06/17/04

It all started under Jimmy C.jahaun@...  | 06/17/04

Moving TargetAqusenu  | 06/17/04

Internal AttitudeOldtimerWebbie  | 06/17/04

Inundated with IDIOTSPalmerj@...  | 06/17/04

IT Morale at all time lowRAGL  | 06/17/04

Morale lowND_IT  | 06/17/04

My Observationsbeisenhamer  | 06/18/04

Necessary evildmartinez@...  | 06/18/04

My 8th day of work!alanrl@...  | 06/21/04

Wanted: Best & Worst Examples of Morale Changing BehaviorBeth Blakely  | 06/22/04

Immature workers and immature upper managementscgops  | 06/23/04

NO REWARDS NO RECOGNITIONdmogwe@...  | 07/07/04

Run, Run for your life..........relm@...  | 07/20/04

I agreeLumbergh77  | 07/20/04

It can go both ways.......IT_techie_guy  | 07/20/04

Morale Lowmhkhan@...  | 08/13/04

How low can you go...Soulman918  | 08/24/04

IT in US is down the drain netrek@...  | 08/31/04

Morale sucks for all Tech Support Workerssteven.foley@...  | 01/01/05

nonsenseapotheon  | 01/01/05

Spoiled and Wineymhdavis@...  | 06/10/04

Heartily agree with you!eric.brown@...  | 06/10/04

Sounds like a manager.davryn@...  | 06/10/04

SPOILED AND WHINEY? (CORRECTLY SPELLED)kphillips@...  | 06/10/04

Thanks for the All CAPS...TomSal  | 06/21/04

Spoiled and Whinylukkerd@...  | 06/10/04

Well Management Taught You Wellmhedden27713@...  | 06/10/04

Our RealityTinaRR  | 06/10/04

HAHAHAdmwoodcock@...  | 06/11/04

Citizenshipchameleon186@...  | 06/10/04

Loyalty is a Reasonable ExpectationWayne M.  | 06/11/04

The plain and simple truth isJimHM  | 06/11/04

cuz if you don't..pacoscreech  | 06/17/04

Thank you!kphillips@...  | 08/26/04

woe is menetrek@...  | 08/31/04

You said it all when ...Prefbid II  | 08/31/04

You sound like my old boss - HAJimHM  | 06/11/04

Where would the world be without people who request change?kphillips@...  | 08/26/04

Not just IT morale...saigman  | 06/14/04

Good Pointssternzy  | 06/17/04

Saving the wrong NickelDilbert-Tom  | 06/21/04

GEE WIZZ!!!!husp1@...  | 07/06/04

Simple Answersternzy  | 07/20/04

Pardon me if I'm wrongHGIC2  | 07/20/04