the programming job market: from bad to worse

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HugoBlack
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23 Oct 2005, 8:54 pm

Recently, I have been talking to people and learning a little more about the world of IT/programming/software engineering careers. I have no interest in them myself. I just finished a masters degree in accounting and am getting ready to sit for the CPA exam. But in my accounting program there are several people who came from those tech fields. Some things I have learned recently:

1. The job market may be improving slightly from how it was during 2001/2002, but is still a bad market.

2. The unemployment/underemployment rate is very high (40% or more).

3. While this country produces 1.5 million tech graduates per year, China and India combined produce more than 7 million tech graduates per year.

4. Those who do find jobs have very little job security. Layoffs are so common people expect them. And if you get laid off, you are thrown back out on the job market and have to start all over again.

5. Advancement is very difficult in the world of tech.

6. People tend to specialize, and thus become more narrowly focused. This is a problem if their field becomes obsolete, or get so narrowly focused that finding any job becomes very difficult.

Also, the situation is likely to get far worse over the next 20 or 30 years. Globalization will continue, India and China will continue to grow, and the tech fields will likely be affected the most due to the supply of tech workers in these countries.

I am not trying to dissuade anyone here. I am trying to open a debate. The tech world has real problems. People may have done well in the 1990s, but the field was over valued and over hyped back during those bubble days. It never will be like that again, largely due to the influence of India and China. It probably will continue to get worse over the coming decades. If you have social skills or interviewing problems, entering a field with so much competition and so much more supply than demand can present a whole range of problems.



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23 Oct 2005, 10:42 pm

Ocuppational Outlook handbook 2004-05 edition wrote:
Computer software engineers are projected to be one of the fastest growing occupations from 2002 to 2012. Rapid employment growth in the computer systems design and related services industry, which employs the greatest number of computer software engineers, should result in highly favorable opportunities for those college graduates with at least a bachelor’s degree in computer engineering or computer science and practical experience working with computers. Employers will continue to seek computer professionals with strong programming, systems analysis, interpersonal, and business skills.

Despite the recent downturn in information technology, employment of computer software engineers is expected to increase much faster than the average for all occupations, as businesses and other organizations adopt and integrate new technologies and seek to maximize the efficiency of their computer systems. Job growth will not be as rapid as during the previous decade however, as the software industry begins to mature and as routine software engineering work is increasingly outsourced overseas. Competition among businesses will continue to create an incentive for increasingly sophisticated technological innovations, and organizations will need more computer software engineers to implement these changes. In addition to jobs created through employment growth, many job openings will result annually from the need to replace workers who move into managerial positions, transfer to other occupations, or leave the labor force.

Demand for computer software engineers will increase as computer networking continues to grow. For example, the expanding integration of Internet technologies and the explosive growth in electronic commerce—doing business on the Internet—have resulted in rising demand for computer software engineers who can develop Internet, intranet, and World Wide Web applications. Likewise, expanding electronic data-processing systems in business, telecommunications, government, and other settings continue to become more sophisticated and complex. Growing numbers of systems software engineers will be needed to implement, safeguard, and update systems and resolve problems. Consulting opportunities for computer software engineers also should continue to grow as businesses seek help to manage, upgrade, and customize their increasingly complex computer systems.

New growth areas will continue to arise from rapidly evolving technologies. The increasing uses of the Internet, the proliferation of Web sites, and “mobile” technology such as the wireless Internet have created a demand for a wide variety of new products. As individuals and businesses rely more on hand-held computers and wireless networks, it will be necessary to integrate current computer systems with this new, more mobile technology. Also, information security concerns have given rise to new software needs. Concerns over “cyber security” should result in businesses and government continuing to invest heavily in security software that protects their networks and vital electronic infrastructure from attack. The expansion of this technology in the next 10 years will lead to an increased need for computer engineers to design and develop the software and systems to run these new applications and that will allow them to be integrated into older systems.

As with other information technology jobs, employment growth of computer software engineers may be tempered somewhat by an increase in contracting out of software development abroad. Firms may look to cut costs by shifting operations to foreign countries with highly educated workers who have strong technical skills. .



HugoBlack
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24 Oct 2005, 12:02 am

jman wrote:
Ocuppational Outlook handbook 2004-05 edition wrote:
Computer software engineers are projected to be one of the fastest growing occupations from 2002 to 2012. Rapid employment growth in the computer systems design and related services industry, which employs the greatest number of computer software engineers, should result in highly favorable opportunities for those college graduates with at least a bachelor’s degree in computer engineering or computer science and practical experience working with computers. Employers will continue to seek computer professionals with strong programming, systems analysis, interpersonal, and business skills.


Because the government says it, it must be true? Look, many of you would be better advised to work on your social skills and get something with better long term prospects. Every computer programmer I talk to says the same thing about this. There are some jobs, but they are very competitive to get, have no upward advancement potential, and you can be and often are laid off on the spot. You are competiting not just with your fellow graduates, but with people with a lot of experince who often don't have any more opportunties than you, people from India and China who come here, and the tens of millions of people in India and China willing to do as good of a job for a fraction of the cost. Underemployment also seems to be a big problem, especially among AS people who don't do as well socially. They may work some, but they may be in low paying contract jobs off and on. You don't need to run away from the social side of the world. Think of how much better off you would be if you had some social skills. I have pretty good social skills for someone with AS, and I am very happy. I think a lot of AS people go into computers because they view it as a way to not have to develop their social skills and live in a world where these do not matter. Social skills matter a lot, even in the world of IT.



jman
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24 Oct 2005, 1:43 am

The job in IT im going for is computer support specialist or network administrator which requires good social skills. I've just started an internship and so far so good.

umm I think you got it wrong when you say aspies choose computer programming to escape learning social skills. Many aspies choose computer programming because it's something their good at and it's something their interested in. Also many aspies that are in computer programming probably didn;t realize til recent years that they were aspies.

You say you're not trying dissuade people? Then why are you posting this? If you trying to start a debate this not the place to do it. This is a support site, You wanna have a job field debate go to monster.com or a computer board.

Many people here have a hard enough time finding jobs without people like you posting discouraging messages like this just for the purpose of debate. If computer programming is not the field for aspies then what is?

I am also having a hard time understanding how you know so much about the IT field. Where did you get that 40% unemployment/underemployment rate?

From what I understand the IT field is a much better field than some other fields out there. Like the psychology field for example. I really wanted to go into the psychology field for a while, but then I looked up job posting and their were alot more IT jobs than jobs involved with mental health.

You're right about the dot-com bust and globalization but that does not mean that IT field is permanetely doomed.



eyeenteepee
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24 Oct 2005, 2:35 am

To the original poster:

As someone who actually works in IT (and has done for the past 8 years), I would say all the original points are valid, but only to a point.

For instance, the threat from China/India is real but is not as pronouced as you might think. There are still vast numbers of IT professionals employed across the western world, most enjoying very healthy salaries.
Many companies are moving away from outsourcing, back towards insourcing as they realise the supposed benefits were not as great as promised.

The situation will not likely get worse. Communications infrstructure already allows for all IT to be moved abroad, and there are plently of talented graduates to employ out there. And yet there are still new jobs being created in IT outside of China/India. That suggests that we may have already reached a stable balance between exporting IT jobs and the remaining number that should/must be kept in the country of origin.

Also, one must remember that as demand for these skills increases in the low-wage economies, the workers there will inevitabely demand higher wages and better benefits, thus eroding the cost base advantage they currently have.

As for the social skills thing, whilst having such skills would undeniably be helpful, it should go without saying that is a bit of a crass thing to suggest to an Aspie, is it not? I am pleased for you if you do have good social skills, but please remember that a fundamental aspect of AS is impairment in social understanding and social communication. That will obviously have implications on ability to learn and correctly use whatever social skills that may be applicable to the job.
With the best will in the world, you can't just make these problems go away, no matter how useful they clearly are to your occupation.

As for the selection of computer programming as a career, I'm afraid IT chose me, I always wanted to be a musician, but I'm tone deaf! :lol:
Seriously though, I started programming when I was 7 years old, far too young to be deciding careers on the basis of what would or wouldn't be demanding! :)
I do it, strangely enough, because I enjoy it. The nature of programming is highly appealing to the way my mind works, nothing more, nothing less.

:D


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HugoBlack
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24 Oct 2005, 2:54 am

jman wrote:
The job in IT im going for is computer support specialist or network administrator which requires good social skills. I've just started an internship and so far so good.

umm I think you got it wrong when you say aspies choose computer programming to escape learning social skills. Many aspies choose computer programming because it's something their good at and it's something their interested in. Also many aspies that are in computer programming probably didn;t realize til recent years that they were aspies.


Whatever their reasons, I think they often don't develop their social skills like they could. AS is not an absolute disability. Yes you probably never will be "normal," but that doesn't mean you can't improve your deficiencies and get closer to that. I have learned many times that you cannot use your AS as an excuse. In the end, we are all judged in the real world by the same standard as the NTs. If we choose to not improve, and let our social skills stay deficient, we will continue to lose opportunities and be unsuccessful at things. Honestly, I think a lot of us are afraid of not going into an area a little more pragmatic due to uncertainy and being afraid of what else might be out there. AS people also seem to not always make the most pragmatic decisions.

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You say you're not trying dissuade people? Then why are you posting this? If you trying to start a debate this not the place to do it. This is a support site, You wanna have a job field debate go to monster.com or a computer board.


Again, we need to improve our social skills. Having social skills sometimes means having the ability to not be so bothered by criticism or disagreement. I have been in AS support groups and talked with others, and have noticed that often we are bothered by little things very easily.


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Many people here have a hard enough time finding jobs without people like you posting discouraging messages like this just for the purpose of debate. If computer programming is not the field for aspies then what is?


Ever wonder why they have such difficutly finding jobs? Most of us either don't have good college backgrounds (ie didn't graduate) or when we do, we go into poor fields with luckwarm demand and opportunities.

Their is no one "field for aspies." What works for one wont work for another. But one characteristic of a field that would be good, would be one with ample and robust demand and relatively acceptable supply for the amount of demand. In computers, you are often competing with tens of millions of programmers in India and China. Everyone in India is not just handling call centers. A very large chunk of tech research and development these days is done in India and China. It is far cheaper over there and the work is at least as good.

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I am also having a hard time understanding how you know so much about the IT field. Where did you get that 40% unemployment/underemployment rate?

From what I understand the IT field is a much better field than some other fields out there. Like the psychology field for example. I really wanted to go into the psychology field for a while, but then I looked up job posting and their were alot more IT jobs than jobs involved with mental health.


The "psychology field" is very robust IF you have a PhD in and license in clinical psychology and are willing to be a therapist. No if you have just a BA in psychology there is not a whole lot of demand.

Sure IT is good compared to philosophy or sociology. That doesn't say a whole lot, however.

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You're right about the dot-com bust and globalization but that does not mean that IT field is permanetely doomed.


Is it permanently doomed? Of course not. It just will continue to get more global, more competative, more difficult to succeed in, and more cut throat.



HugoBlack
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24 Oct 2005, 3:13 am

eyeenteepee wrote:
To the original poster:

As someone who actually works in IT (and has done for the past 8 years), I would say all the original points are valid, but only to a point.

For instance, the threat from China/India is real but is not as pronouced as you might think. There are still vast numbers of IT professionals employed across the western world, most enjoying very healthy salaries.
Many companies are moving away from outsourcing, back towards insourcing as they realise the supposed benefits were not as great as promised.


I disagree. Given I do not work in the field, but what you are saying is that companies are now chosing to spend more money on labor than they have to. Outsourcing is here to stay. Outsourcing does not just refer to sending IT jobs to China. If a company has its payroll work done by a domestic outside provider, that is outsourcing. It is done all of the time in the business world. It is done with just about every task you can think of. If the task isn't directly related to the company's core competency (building cars if you are GM for example), then the work is outsourced. This type of thing has been done for a very long time and has only increased, because companies realize that they can save money by doing it this way.

The statement "they realise the supposed benefits were not as great as promised" I must disagree with also. There has been no lacking of quality in work done by people in India or China. They almost always do the work at least as well as someone domesticly.

Quote:
The situation will not likely get worse. Communications infrstructure already allows for all IT to be moved abroad, and there are plently of talented graduates to employ out there. And yet there are still new jobs being created in IT outside of China/India. That suggests that we may have already reached a stable balance between exporting IT jobs and the remaining number that should/must be kept in the country of origin.


Over the next year or two it probably wont get worse. As the economy improves the situation may even improve some. But over the next 20 or 30 years, as the world gets even more globalized, it will likely get far worse. People in all fields, throughout the economy, will have to compete for jobs in the global marketplace. This will not be confined to IT by any means. Other professions might have to start worrying about losing their jobs. But as this is a continuum of sorts, IT will always be on the edge of this outsourcing and globalization continuum. The effects in other areas will be felt by people in those fields, but they will be felt by a far larger magnitude in IT and other tech fields. Already IT provides no job security, and people are laid off all of the time. Over this next 30 years this will be amplified many times.

Quote:
Also, one must remember that as demand for these skills increases in the low-wage economies, the workers there will inevitabely demand higher wages and better benefits, thus eroding the cost base advantage they currently have.


The workers in these countries will only be able to demand higher wages as the net median earnings in these countries increases. The average Indian makes less than $2,000 per year. As long as this continues, the wages of these Indian IT workers will not change much. Yes, if the average Indian earnings were closer to that in this country, say 40k, then the cost benefit would be erroded. But we are 50 years away from that.



eyeenteepee
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24 Oct 2005, 3:14 am

HugoBlack wrote:

Whatever their reasons, I think they often don't develop their social skills like they could. AS is not an absolute disability. Yes you probably never will be "normal," but that doesn't mean you can't improve your deficiencies and get closer to that. I have learned many times that you cannot use your AS as an excuse. In the end, we are all judged in the real world by the same standard as the NTs. If we choose to not improve, and let our social skills stay deficient, we will continue to lose opportunities and be unsuccessful at things. Honestly, I think a lot of us are afraid of not going into an area a little more pragmatic due to uncertainy and being afraid of what else might be out there. AS people also seem to not always make the most pragmatic decisions.


Aaah! I get it, this isn't about IT at all. You want to tell us how great you are and how rubbish the rest of us are because we haven't made the same improvements in social skills you have? :?:

Trust me, as someone who's only recently learnt about AS and spent all my life trying to improve my social skills and wondering why I kept getting nowhere, it is really not as simple as using AS as an excuse. We all have to work within the limitations of what we can and can't do. Sometimes those boundaries can be moved a little or a lot, often times not at all. The wise person will learn to make the most of their strengths and not spend their lives in futile attempts to change what they have already learnt from experience cannot be changed.

Yes, try to improve your social skills if you can, but I don't think anybody should even be making the implication that somehow we Aspies are lazy for not conforming to NT standards of communication.

Some of us have spent an entire lifetime tormenting ourselves as to why there is never any progress with these areas and resent being told the equivilent of "just try harder".


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eyeenteepee
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24 Oct 2005, 3:25 am

HugoBlack wrote:

I disagree. Given I do not work in the field, but what you are saying is that companies are now chosing to spend more money on labor than they have to. Outsourcing is here to stay. Outsourcing does not just refer to sending IT jobs to China. If a company has its payroll work done by a domestic outside provider, that is outsourcing. It is done all of the time in the business world. It is done with just about every task you can think of. If the task isn't directly related to the company's core competency (building cars if you are GM for example), then the work is outsourced. This type of thing has been done for a very long time and has only increased, because companies realize that they can save money by doing it this way.



On the contrary, companies are always trying to reduce their bottom line. They have just seen that sometimes the most cost efficient method is to do things in-house, and not automatically outsource/export the work.

HugoBlack wrote:

The statement "they realise the supposed benefits were not as great as promised" I must disagree with also. There has been no lacking of quality in work done by people in India or China. They almost always do the work at least as well as someone domesticly.



If you read what I said carefully you will see that I not once complained about the quality of work from China/India, merely that it isn't alway as cost effective as one might assume. I have worked with many Indian contractors and found the standard of their work to be at least as good as UK based IT professionals.

HugoBlack wrote:

Over the next year or two it probably wont get worse. As the economy improves the situation may even improve some. But over the next 20 or 30 years, as the world gets even more globalized, it will likely get far worse. People in all fields, throughout the economy, will have to compete for jobs in the global marketplace. This will not be confined to IT by any means. Other professions might have to start worrying about losing their jobs. But as this is a continuum of sorts, IT will always be on the edge of this outsourcing and globalization continuum. The effects in other areas will be felt by people in those fields, but they will be felt by a far larger magnitude in IT and other tech fields. Already IT provides no job security, and people are laid off all of the time. Over this next 30 years this will be amplified many times.



I think you've answered your own criticism of IT here, the globalization pheonomenom is not merely constrained to IT, but to the whole service sector. Therefore, IT is no worse a choice of career than any other, on that basis alone. I would disagree with the statement that IT provides no job security. It is no better or worse than any other occupation. IT people may simply complain more about it! :)

HugoBlack wrote:
The workers in these countries will only be able to demand higher wages as the net median earnings in these countries increases. The average Indian makes less than $2,000 per year. As long as this continues, the wages of these Indian IT workers will not change much. Yes, if the average Indian earnings were closer to that in this country, say 40k, then the cost benefit would be erroded. But we are 50 years away from that.


Don't forget that salary is just one overhead. The additional cost of infrastructure and management to successfully export IT jobs is a major factor too.
Plus, Indian salaries are already sky-rocketting, hence the addition of China as a new player, who are themselves stealing work from India, because the wage basis is even lower. So it's not just us in the western world that needs to watch our back! :lol:


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24 Oct 2005, 4:45 am

HugoBlack wrote:
3. While this country produces 1.5 million tech graduates per year, China and India combined produce more than 7 million tech graduates per year.


Which country are you talking about at the beginning there?
The USA I presume.
Your profile doesn't indicate where you're from.



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24 Oct 2005, 4:58 am

Good point - I missed that.

Me thinks there is some "bendiness" in those figures. Probably by a factor of 10-100... :)


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HugoBlack
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24 Oct 2005, 6:33 pm

eyeenteepee wrote:
Good point - I missed that.

Me thinks there is some "bendiness" in those figures. Probably by a factor of 10-100... :)


I found the numbers, 1.5 million US and 7 million India/China in an article on this topic in Business Week.



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24 Oct 2005, 6:38 pm

eyeenteepee wrote:

Aaah! I get it, this isn't about IT at all. You want to tell us how great you are and how rubbish the rest of us are because we haven't made the same improvements in social skills you have? :?:


Not at all.

Quote:
Trust me, as someone who's only recently learnt about AS and spent all my life trying to improve my social skills and wondering why I kept getting nowhere, it is really not as simple as using AS as an excuse. We all have to work within the limitations of what we can and can't do. Sometimes those boundaries can be moved a little or a lot, often times not at all. The wise person will learn to make the most of their strengths and not spend their lives in futile attempts to change what they have already learnt from experience cannot be changed.


I agree. I don't think any of us are lazy in the slightest. I think people who have substantive disabilities sometimes get discuraged. I know I have. My only opinion here is that we improve our social skills as much as we are able. If one is not able to improve their social skills beyond what they already have, then I completely understand. There is nothing wrong with that. I think for many people (including myself), there is always a little more we can improve. I honestly don't know what you have against me suggesting that people always try to make their social skills a little better.

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Yes, try to improve your social skills if you can, but I don't think anybody should even be making the implication that somehow we Aspies are lazy for not conforming to NT standards of communication.


I never said anyone is being lazy. Nor did I infer it.

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Some of us have spent an entire lifetime tormenting ourselves as to why there is never any progress with these areas and resent being told the equivilent of "just try harder".


I am not saying just try harder. I am saying never give up. Always try to improve, however much you can.



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24 Oct 2005, 8:29 pm

eyeenteepee wrote:
On the contrary, companies are always trying to reduce their bottom line. They have just seen that sometimes the most cost efficient method is to do things in-house, and not automatically outsource/export the work.


Outsourcing is almost never more expensive. That is why it is so widespread. If one group you outsource to is too expensive, someone else will do it for a cheaper price. Often these firms specialize in certain things, such as programming. They have more of a core competency in this area and are more efficient, because this is their business. No everything will not be outsourced. But many things can be, and are.

Quote:
I think you've answered your own criticism of IT here, the globalization pheonomenom is not merely constrained to IT, but to the whole service sector. Therefore, IT is no worse a choice of career than any other, on that basis alone. I would disagree with the statement that IT provides no job security. It is no better or worse than any other occupation. IT people may simply complain more about it! :)


Yes potentialy all fields can be affected by outsourcing and these supply/demand imbalances. However, as I said, the effect is always multiplied by several factors in IT. It has been in the past, is now, and will be in the future, worse in IT than it is just about anywere else. As globalization continues, and more fields become vulnerable, they will still never be nearly as vulnerable as IT. Globalization will hit IT harder than just about anywhere else.

Quote:
Don't forget that salary is just one overhead. The additional cost of infrastructure and management to successfully export IT jobs is a major factor too.
Plus, Indian salaries are already sky-rocketting, hence the addition of China as a new player, who are themselves stealing work from India, because the wage basis is even lower. So it's not just us in the western world that needs to watch our back! :lol:


Indian salaries will not be anywhere near American salaries for the next 50 years.



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25 Oct 2005, 2:04 am

A link for those figures would be nice Hugo, because I can't find them anywhere! :)

Take your point that we should try to be all that we can, however what I was trying to get across is that most of us do all we can and yet life is still tremendously difficult. Just acquiring the neccasary social skills may be straightforward for you, but for others it is an impossibility. That's not letting yourself be constrained by the AS label, but to be resigned to ones limitations after years of hard experience...

As for the IT thing, well you have your view, I have mine. We'll see how it develops over time, I'll stick with my optimistic view thanks... :wink:


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