IT Work - Is the prophecy happening?

As I often do, last night I got together with some past co-workers first and foremost to see how old friends are, but also to keep another part of my network alive.  These guys are/were all consultants.  Through our conversation last night, it struck me how much the IT industry seems to have changed for both employees and consultants alike.  I guess I hadn't realized it since I have been busy for quite some time.  But I am starting to open my eyes to see that many of those that I use to consult with have taken Full Time jobs.  And many of those Full Timers I use to work with and even those consultants that converted to Full Time have been laid off.  Is this the incredibly shrinking IT market that they have been warning us about?

Another interesting observation on the IT market is the incredibly shrinking consulting rates and salaries.  What is driving the US IT market down?  Look, I'm not expecting rates to be near that of the late '90s, but when I see the following post for Metro NY I am blown away.

Qualified individuals will have

7 years of solid experience in developing n-tier web applications with Microsoft technology (ASP, ASP.NET, etc.), preferably in the financial industry.
At least 2 years experience in DOT.NET development including ASP.NET, C#, DOT.NET Framework, Javascript, HTML, XML, and XSLT.
Strong experience working with software patterns in a Microsoft environment and experience working in multi-tiered applications is required.
Candidates must have solid understanding of large-scale database (SQLServer 7/2000, Oracle 8i/9i, etc.) and strong written and verbal communication skills. The ability to interact effectively with all levels of management, strong understanding of software development life cycle and Release Management of ASP.NET projects, and experience in creating design and architecture documents is necessary.
Nice to have skills include: Microsoft Reporting Services and Microsoft application blocks.

This spot is paying $45/hr.  What?  This looks like a highly experienced highly qualified individual to me.  I don't think I am over valuing such a person, but I think this rate is off by more than $20/hr.

What do you think?  What has your experience been?  What is the state of the US IT industry?  Is it time to pack it in and become plumbers, electricians, auto mechanics and landscapers?  Is it all because of “off shoring”?  Are our expectations too high?

Here's an interesting question...  How many of you have left IT for another field and are you doing worse/the same/better than when you were in IT?

--chaz

Print | posted on Wednesday, February 22, 2006 6:52 AM

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# re: IT Work - Is the prophecy happening?

Left by JBarbatos at 2/22/2006 7:59 AM
Gravatar It's a good question. Over the past 2 months it has seemed like the market is picking up a little though. This worries me a little as I am thinking of looking for a new job (I'm just a full timer).

I agree that position does look a little low for what is being asked of them. I've seem similar positions getting about what you were saying they should.

# re: IT Work - Is the prophecy happening?

Left by chris williams at 2/22/2006 8:41 AM
Gravatar hmm thats about 90K /year... maybe its different where you live, but that's actually pretty high (definitely desirable) for us in the south... interesting.

# re: IT Work - Is the prophecy happening?

Left by Eric Newton at 2/22/2006 2:08 PM
Gravatar it really is off by 20$/hr IMO. We need to think of our profession similar to another knowledge-based profession, law. The more experienced you get, the more the value of that experience is. 7 years of tiered architecture? Thats a lot of experience and should be paid for that.

# re: IT Work - Is the prophecy happening?

Left by David Douglass at 2/22/2006 7:03 PM
Gravatar I left consulting for FTE. Not because of rates but, unless you're an independent, the companies you're employed by COMPLETELY SUCK. They'll say anything to land a deal and then they send you in to try and make it happen.

As for that $45/hour, it's a low ball. They'll get resumes and simply take the best they can find who is willing to work at that rate. The person probably won't meet all the job requirements.

Off shoring? Don't listen to all the blather in the media. Look at the financial results for the off shore providers; that's hard data. By that measure, yes, off shoring must be driving down US rates.

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