Commentary

InformationWeek
InformationWeek  

IT Jobs In Jeopardy To Enemy Within

If you've got a well-paying IT job in one of the traditional centers of technology like Boston, New York, or San Francisco, you and your coworkers have had to withstand the increasing outsourcing of jobs to emerging nations in recent years. But it may be more likely you'll be losing your job to someone in Omaha, Neb.

If you've got a well-paying IT job in one of the traditional centers of technology like Boston, New York, or San Francisco, you and your coworkers have had to withstand the increasing outsourcing of jobs to emerging nations in recent years. But it may be more likely you'll be losing your job to someone in Omaha, Neb.That's according to a survey being presented next week by The Boyd Company. Boyd specializes in site selection for data center projects. It looked at 35 cities in the United States and created a detailed analysis of what it costs to do business in America. Among the findings, not too surprisingly, is that just about everything's a lot cheaper in the heartland.

"Businesses are being priced out of locations like Boston, San Diego, and New York," says John Boyd Jr., a consultant with Boyd. "The idea of attracting and retaining a workforce in a small city in the Midwest today is actually quite appealing."


More Insights

White Papers

More >>

Reports

More >>

Webcasts

More >>

With businesses already overwhelmed by escalating data center costs and complexity, it's not illogical to believe they'll increasingly turn to places like Iowa, Nebraska, Oklahoma, Texas, and South Dakota to reduce the corporate burden. According to the Boyd study, it costs 45% more to run a similar-sized facility with like-sized staff in New York than Sioux Falls, S.D. A Web security manager in San Francisco will cost you $152,000, but only $122,000 in San Antonio, Texas. A data security analyst manager in Albuquerque, N.M., can be had for $100,000. In Boston, the position pays $119,000.

Land, utility prices, taxes, and travel all generally cost more in New York and California than in New Mexico or Colorado. And there's the convenience of a central time zone and shorter flights to either coast. And while Dorothy might have had to tangle with tornadoes, the heartland of America is less prone to suffer damage from hurricanes and earthquakes.

The best talent generally succeeds and is rewarded regardless of the person's geographic location, and smart businesses will always find ways to accommodate those individuals. But when faced with a data center project that will require 50 or more midlevel engineers and analysts, the difference between spending $7 million a year to staff a 125,000 sq. ft. data center in Chicago and $5.6 million for the same-sized staff in Sioux Falls, S.D., will have to be considered.

InformationWeek on Monday will look at the Boyd report and consider where data center investment is currently hottest. It's certainly not all centered in the breadbasket. Business leaders know the cost of technology can be a high-risk and high-reward game. Evaluating new markets should be a commonsense strategy to reduce the front-end risk of data center expansion.


Related Reading




Currently we allow the following HTML tags in comments:

Single tags

These tags can be used alone and don't need an ending tag.

<br> Defines a single line break

<hr> Defines a horizontal line

Matching tags

These require an ending tag - e.g. <i>italic text</i>

<a> Defines an anchor

<b> Defines bold text

<big> Defines big text

<blockquote> Defines a long quotation

<caption> Defines a table caption

<cite> Defines a citation

<code> Defines computer code text

<em> Defines emphasized text

<fieldset> Defines a border around elements in a form

<h1> This is heading 1

<h2> This is heading 2

<h3> This is heading 3

<h4> This is heading 4

<h5> This is heading 5

<h6> This is heading 6

<i> Defines italic text

<p> Defines a paragraph

<pre> Defines preformatted text

<q> Defines a short quotation

<samp> Defines sample computer code text

<small> Defines small text

<span> Defines a section in a document

<s> Defines strikethrough text

<strike> Defines strikethrough text

<strong> Defines strong text

<sub> Defines subscripted text

<sup> Defines superscripted text

<u> Defines underlined text

InformationWeek encourages readers to engage in spirited, healthy debate, including taking us to task. However, InformationWeek moderates all comments posted to our site, and reserves the right to modify or remove any content that it determines to be derogatory, offensive, inflammatory, vulgar, irrelevant/off-topic, racist or obvious marketing/SPAM. InformationWeek further reserves the right to disable the profile of any commenter participating in said activities.

Disqus Tips To upload an avatar photo, first complete your Disqus profile. | View the list of supported HTML tags you can use to style comments. | Please read our commenting policy.
T-Shirt Giveaway T-Shirt Giveaway: Each week we're selecting one great comment from our readers. The author of the comment will receive an InformaitonWeek Community t-shirt. So get posting!
Subscribe to RSS

Resource Links