IT Professionals Flood Staffing Site Seeking Contract IT Jobs
As IT employment declines, unemployed IT workers are flocking to staffing and sourcing companies for contract work.
Computerworld — Last month, about 20,000 people signed up looking for jobs on oDesk Corp.'s online staffing marketplace that links job seekers with employers offering contract work. It was the largest monthly increase—by at least 40 percent—that its CEO, Gary Swart, has seen since joining the firm in 2005. Swart said and he says he expects another 15,000 people to sign up this month.
At the same time the number of contract jobs advertised on the site has doubled over the past year to approximately 4,600, Swart said.
The increase may be a sign that like outsourcing, contract work may be countercyclical in a troubled economy. "We're seeing companies that are trying to do more with less," said Swart. There are now 157,000 providers, or work seekers, on the site. About a third of those are in the U.S.
At the same time, the National Association of Computer Consultant Businesses said that overall IT employment declined in November by almost 34,000 jobs compared to October. Overall IT employment for the month stood at about 3.87 million, the Alexandrian, Va.-based group said last week.
Employers that use Menlo Park, Calif.-based oDesk typically advertise for help on a specific project. Most jobs on this site are IT-related, including Web, and software development, network administration. There are also projects seeking audio and video, graphic arts, and writing skills.
The oDesk workers are located around the world, and its hourly rates reflect the economic differences among countries. For example, average hourly rates for all jobs average US$12.52 in India, $6.33 in the Philippines, $16.86 in Russia, and $18.32 in the United States.
Swart says the varying pay rates and a declining economy has not placed downward pressure on pay rates in U.S. and other higher-wage countries. The average U.S. hourly rate has not changed in a year, and pay for developers has increased from $19 to $27 an hour there due to strong demand. Some firms are looking for workers in specific time zones, but the most important criteria for many employers is the worker's rating, Swart said. The company provides an eBay-like rating system where developers with strong recommendations can earn many times more than average rates.
Robert Scheier, a managing director for PricewaterhouseCoopers sourcing advisory services, said that in general, the use of outsourced IT services are growing in the U.S. Application development and maintenance are the most popular services sought. He noted that some companies are also looking for expertise in infrastructure outsourcing, which may involve remote monitoring of data centers, and business process outsourcing. "Businesses are undergoing a massive drive to bring down their expenses," said Scheier.
