IT job growth expected in 2011 – or is it?

After a year of stagnant activity, project delays, and stockpiling of cash, it looks like IT projects and spending are finally going to pick up in 2011. This is definitely a positive sign for the tech industry and a good indicator that 2011 will bring much needed job growth. However, there remains some uncertainty as to whether or not the growth in spending will translate into substantial growth in hiring.

According to a recent survey by Dice, all signs are pointing to increased hiring in 2011. Not only is the company seeing substantial growth in IT job postings (postings in December 2010 are up nearly 40 percent from the same period the prior year), but companies are indicating that hiring will increase in 2011. In fact, of the 850 people who responded to the survey, more than 50 percent indicated that they will hire more employees in the first half of 2011 than they did in 2010.

Meanwhile, a recent Computerworld article seems to indicate that spending in the IT sector will see bigger gains in 2011, but job growth will remain modest. Despite the fact that many companies are increasing activity and even planning to increase hiring, it looks like outsourcing might also increase in 2011.

So what should we expect? Many industry analysts, including us, predicted that 2010 would be a big year for tech jobs. While layoffs slowed, the resurgence of hiring in IT never really got going.

As we look to 2011, I think it is safe to say that they tech sector will see increased job growth over 2010. Delayed PC refresh projects should pick up in 2011, and strong growth in mobile technology and information security should spark hiring. However, growth will likely be slow and gradual as companies remain cautious about the economy.

This post was written by Anna McMenamin, former Client Solutions Manager at Yoh.   Learn more about Anna.

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