October 18, 1999

IT Labor Shortage Persists, Hurting The Economy
Studies show Demand For it workers costs billions in salaries and training

By Ramin P. Jaleshgari

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wo studies released last week indicate that the number of vacant IT service and support jobs is affecting the economy and that the overall IT-staff shortage in the United States will continue to grow.

The Computing Technology Industry Association, a nonprofit organization, reported that its studies indicate the IT service and support personnel shortage costs the U.S. economy $105.5 billion annually in spending on salaries and training. The association's study, "Crisis In IT Service And Support," analyzed data from the government as well as participating companies.

The study also found that about 10% of IT service and support jobs, or 268,740 positions, remain unfilled, costing U.S. companies $4.5 billion a year in lost worker productivity due to unresolved technical issues.

John Venator, the association's CEO, says companies can help solve the problem by offering service and support training to nontechnical employees. "We've found that when an employer has invested in an employee, the employee stays longer than those who haven't been trained," he says. Of the 878 CIOs surveyed, nearly half are willing to pay a higher salary to an individual who completes an industry-supported certification program for IT service and support.

In addition, the Gartner Group consulting firm released a study indicating that global demand for IT skills will outstrip supply by 20% in 2004. Gartner says companies will be able to find IT management skills among their ranks, but most will need to look outside for intensive technology skills.

According to Gartner, companies may address internal IT staff shortages by looking internationally for help building global IT services, rather than relying on domestic workers and operations.

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