http://www.computerworlduk.com/management/careers-hr/my-career/news/index.cfm?newsid=8105

A recession for IT departments is imminent, according to an IT systems company.

Enterprise IT teams will halve within 10 years as companies attempt to streamline infrastructure and outsource specialist work, according to Dave Pritchard, chief technologist at Fujitsu Systems.

IT teams were due for a “big shake-up”, he said, with servers, storage and PCs being “managed more cost-effectively by external suppliers … to achieve lower lifecycle costs”.

I have mixed feelings about this. For some technology roles there will be job losses, but new opportunities tend to present themselves in other areas of the technology. I do wonder if it’s not one of those things, in the respect that a company might reduce the number of people it has within that IT department but find it’s operational costs remain similar. There also remains the vested interest part – don’t forget the power as a customer you have within your business – going up to an external vendor and making emotional comments about budget has less effect than walking into your CIO’s office and saying “fix it”, as a vendor/service provider I supply you with a service under a contract, everything else is emotion/noise. (Not being critical of such businesses).  There might be fewer Windows guys, but more people in virtualization roles? Until we get to a truly redundant intuitive IT system where the application, the revenue generation is abstracted from the server/switch/storage or database, we will still need IT people to deliver this service. What I think we’ll find is a closer link between IT and the business with a focus on service delivery in terms of enabling revenue generation or efficiency in terms of cost/delivery – I want faster/higher availability at the same or less cost.

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4 Comments

  1. pos says:

    The idea that IT departments will have ‘outsource specialist work’ makes me chuckle, especially coming from an existing outsourcing company. It is the precise lack of available skills which poses an interesting question for those people who already have them: do I go and work for a tier one IT department such as in banking and finance, or do I work for an out-sourcing company. Given the choice, I know what the majority of people would do…

  2. As we look out 10 years, I find it difficult for any of us to forecast an outcome for IT organizations. From the perspective of the IT operation team member or leader inside business today, the question that needs to be asked is simple. How are we enabling the business to succeed at it’s core business objectives? Are we helping the business be more responsive to change? Are we helping the business reduce costs, grow its customer base, delight customers or provide defensible positioning?

    If the answer is yes, then we are not simply part of an IT organization, you have become a critical business enabler and a member of a group critical to the companies success. If the answer is no, the question over time we have to answer is more difficult – why should the business keep us performing these tasks as opposed to making decisions purely around perceived costs.
    -Jonah Paransky
    (www.stacksafe.com/blog)

  3. pos says:

    The idea that IT departments will have 'outsource specialist work' makes me chuckle, especially coming from an existing outsourcing company. It is the precise lack of available skills which poses an interesting question for those people who already have them: do I go and work for a tier one IT department such as in banking and finance, or do I work for an out-sourcing company. Given the choice, I know what the majority of people would do…

  4. Interesting post. I have made a twitter post about this. Others no doubt will like it like I did.

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