IT holding up well despite the financial crisis

Stuart Corner
Monday, 08 December 2008 16:24

IT Industry - Market

According to the head of Dimension Data Learning, the demand for IT skill training is holding up well in the current downturn, in stark contrast to the situation back in 2000. David Gage, general manager at IT training organisation, Dimension Data Learning Solutions (DDLS), told iTWire that this was reflection of the much greater role IT plays in business than a decade ago. "In 2000/2001 IT spending was more discretionary. Organisations were not as highly leveraged. Today IT is seen as non-negotiable. This is a stark contrast to 2000. This time around IT is really expected to deliver."

Gage added: "Training spend is holding up well. We have not seen a hit yet, even in some of the major financial institutions where you would expect the cuts to come first. We have heard some of the major banks putting in place travel freezes but saying the will maintain training spend. This is a total contrast to 2000-2001 when we saw a significant drop off in training."

Gage said the hotspots were data centre skills, mobility and productivity and unified communications and collaboration, along with project management and business analysis skills.

"Organisations that are making big investments in major projects want to make pretty sure they are successful. Garner estimates 22 percent of IT projects do not deliver on expectations and organisations will not tolerate that."

However, Gage said the situation for people with entry level skills was much more dismal and this did not bode well for the future of the industry as a whole

There has been a fall off in recruitment to IT courses at universities and colleges since 2000 and now in the face of tough economic times organisations are not investing in entry level skills or in their development.

"Historically roles like entry level help desk are the first to go in a downturn. But people in those roles need to gain credibility and some on the job experience. I think it will be pretty tough for those workers in the next 12 months, and we are running a bit of a risk because of the ageing work force.... Where will the people come from to rise up through the ranks and take on those more senior roles?"

Gage added: "We could roll out a significant career start programme but I think it would be tough in the next 12 months for people coming through that programme to get jobs."