Demand still strong for IT professionals

With many speculating on a change of government this year, and the prospect of economic recession looming, change is in the air. But one thing that looks set to remain constant throughout 2008 is the demand for IT professionals.

Beyond Recruitment director Ben Pearson says an unprecedented number of new vacancies in the weeks leading up to Christmas bodes well for the coming year.

He says the pressure is coming from high-profile government projects, such as the Health Ministry's National Systems Development Programme – a series of projects aimed to improve information sharing and systems within the health sector.

Hudson IT&T general manager, Campbell Hepburn, says there are about 750 to 1500 IT vacancies in Wellington at any time and about 2750 to 3500 nationally.

Shortages are particularly severe in the areas of .Net and Java programming, business analysis, systems and software testing and in technology architecture.

"In 2008 we'll feel a heightened sense of frustration expressed by employers as they fail to fill vacancies in their preferred time frames."

He says the shortage is unlikely to ease, with IT professionals being lured overseas by higher salaries, and lower than normal enrolments in tertiary ICT courses.

The shortage means businesses are not meeting their deadlines, and this has implications for economic growth.

Though they prefer local people, employers are becoming more willing to take on migrants – but only if they are in New Zealand or have committed to the move. "They're not prepared to pay the relocation costs which can be up around $25,000 to $30,000 for a family of four."

Absolute IT director Tina Ng says some jobs can take three to four months to fill. She says the onus is on employers to "sell their value proposition" to IT professionals, who neither want nor need to compromise when looking to fit into a team or corporate culture.

Some employees are putting in long hours to meet the demands of projects, but conditions are flexible and employers are placing more importance on work-life balance.

In the lead-up to the election, demand may slow a bit, says Powerhouse People senior consultant Paul Heath.

"Governments tend to be very cautious about what they do during that period, they don't want to do things that rock the boat at all."

Ninetwenty general manager Nathan Masters says the election could have a direct impact – particularly on the burgeoning contractor market.

"Government departments could be taking on more workers than independent contractors. This is not only good for their headcount but reduces their costs as well." Contractors are easier to "let go" than permanent employees.

Mr Masters says the trend toward contracting could partly be due to the fact that Generation Y workers are attracted to money and interesting projects, rather than job security.

Even an economic recession would not necessarily mean lean times for the sector. "IT tends to follow global trends rather than national domestic forces. Sometimes a recession focuses on efficiencies and reducing costs, spending on IT can help achieve these goals," Mr Pearson says.

Any slip in the IT sector would be felt later on. IT recessions historically occur every seven to eight years, and though there have been no warnings, the sector is due for another, he says.

QualIT general manager Craig Dewhurst says economic slowdown is difficult to pick, but growth may slow during the next year.

"In the last three months we've had more people contacting us looking for work than us contacting people."

Despite this, he says he is starting to see a strong demand for IT workers from the telecommunications sector and Telecom in particular – which has a preference for permanent staff.

Permanent staff are becoming more attractive as the contractor market continues to push prices up.

He says lifestyle and the ability to self-manage draws workers into contracting. "But a lot of contractors are not investing in their own skills and training. Some need to look at whether their skills are going to be current in the next two or three years."

Mr Heath says IT workers don't seek particular projects or employers. "They're looking for challenging work, an organisation with vision and good management – it can be any sort of company."

- © Fairfax NZ News