Feeds

Onshore coders' salaries rise along with Offshore fears

More pay for better work

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

So much for US legislators' concerns about the damaging impact of outsourcing on domestic tech-workers' employment and pay prospects.

IT workers are experiencing a minor uptick in their salaries as employers slowly realize that sending jobs to low-wage economies creates more difficulties than it solves. That's according to two separate surveys, which appear to back the thinking among certain analysts that companies should adopt a "selective" approach to outsourcing.

That approach means retaining onshore those positions that require specialized knowledge of new technologies or processes that are unique to your company and sending overseas less specialized skills, like code crunching.

A new Foote Partners survey has found that, overall, salaries grew between 3.8 percent and 1.3 per cent respectively for certified and non-certified individuals in the fields of application development, databases, enterprise software, networking and systems administration during the first six months of 2005.

Salaries increased 4.9 per cent and 3 per cent, respectively, for the 12 months to July 1.

For non-certified staff, operating systems led the field, growing 8.2 per cent during the first six months, while knowledge of web technologies was top in the certified staff category, with salaries growing 3.8 per cent.

The increases follow a decline in pay of between 7 and 10 per cent 18 months ago, in networking, databases and application development, according to Foote.

"The pendulum has swung to the other side as companies have become more aware of the difficulties in doing off-shoring successfully and achieving anticipated cost savings," Foote co-founder David Foote said in a statement. Foote surveyed 50,000 IT professionals.

The Foote survey follows the US Bureau of Labor Statistics report last week of a 7.5 per cent year-on-year increase in "computer and mathematical" occupations - a category that includes programmers - to 3.2m. The Bureau pointed to increased demand for high-end programmers in new technology areas like web services and wireless.

Foote continued that, after an initial rush to send work overseas, employers have become more selective and risk averse when deciding which work they can afford to offshore and which must remain under their control.

"[Employers] are demanding more industry-specific experience to go with tech skills mastery. They're also searching for workers with... specific experience within a particular industry now that money is once again flowing to innovation and new products and services that will ensure their competitiveness," according to Foote.

Shame the phenomenon isn’t being experienced in telephone support.®

Related stories

R&D and skills crisis looms for Europe
Dell: why Customer Care had to die
Offshoring jobs threat 'exaggerated' - WTO
India call centre staff in sex romp shocker
Indian call centre security breach: man admits guilt
More outsourcing = more unhappiness

Beginner's guide to SSL certificates

More from The Register

next story
Bada-Bing! Mozilla flips Firefox to YAHOO! for search
Microsoft system will be the default for browser in US until 2020
Be real, Apple: In-app goodie grab games AREN'T FREE – EU
Cupertino stands down after Euro legal threats
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
SLURP! Flick your TONGUE around our LOLLIPOP – Google
Android 5 is coming – IF you're lucky enough to have the right gadget
Microsoft: Your Linux Docker containers are now OURS to command
New tool lets admins wrangle Linux apps from Windows
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Internet Security Threat Report 2014
An overview and analysis of the year in global threat activity: identify, analyze, and provide commentary on emerging trends in the dynamic threat landscape.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.