Atlanta Faces a Challenging 2008

January 2008

State government IT outsourcing is one sign the current climate is tough.

A winter chill blew across Georgia at the end of 2007 when Governor Sonny Perdue announced the state was planning to outsource state technology jobs in order to save money. The total number of jobs to be eliminated could climb to 1,100, a nasty bit of news for any Atlanta or Georgia tech expert suffering from outsourcing paranoia. And while this is a public sector event, the private IT sector has been struggling as well.

Atlanta SkylineThe quarterly Manpower Employment Outlook Survey, which covers all industries, found that from January to March, an unimpressive 15 percent of the companies interviewed plan to hire more employees, according to Manpower spokesperson Beth Herman. That's a bit of a slowdown from the fourth quarter. On Dice, the number of available jobs in Atlanta dropped 12 percent in the fourth quarter, to a total of 2,843. Of course, seasonality plays into that decrease as annual budgets dry up in the final months of the year.

One bright spot is in Dice's newest salary survey. It shows Atlanta IT salaries, which average $74,822, were up 3.46 percent in the past year and are just above the national average. The recently published 2008 Robert Half Technology Salary Guide is even more positive. It found Atlanta salaries to be 15 percent above the national average. Robert Half sees the strongest IT job demand in Atlanta for Web developers, data warehousing analysts, and network security administrators.

'The financial service industry has continued to extend their service offerings in 2007, which has created unique in-demand skills.'
- Travis Reding, Atlanta Branch Manager, Sapphire Technologies

Travis Reding, branch manager of IT recruiter Sapphire Technologies' Atlanta office, lists additional skills that are in demand: "In the fourth quarter we didn't notice any changes in the types of titles and skills that our customers covet. Project managers, business analysts, Java experts, and quality assurance experts continue to be the most in demand."

Overall, Reding is optimistic about 2008. "Our internal indicators are clearly showing that the Atlanta IT employment climate is still strong. We have been seeing an abundance of job orders and placements coupled with an increasingly strong demand for permanent placement." In what industries? "The financial service industry, specifically transaction-based service companies, has continued to extend their service offerings in 2007, which has created unique in-demand skills. With the prevailing negative changes within the mortgage lending business, I anticipate growth within other banking areas and technological advancements will likely be the result."

Even with what he calls a "looming recession" on the horizon, Reding says, "Rumors of large corporations relocating their operations and core functionalities to the area should provide enough transitional growth to offset any reduction in capital spending."

One thing Atlanta does have going for it is economic diversity. Business 2.0 magazine lists companies such as AGL Resources, the Home Depot, and Newell Rubbermaid as the city's fastest-growing. A look at their career pages suggests at least some demand for senior software developers, IT project managers, and business process/management consultants. Additionally, the Georgia Institute of Technology helps create a climate of innovation. The school is affiliated with the biotech-oriented Technology Enterprise Park in Midtown, and GIT's Venture Lab has launched 19 companies in six years.

If all else fails, think outside the box and go Israeli. According to Atlanta's American-Israel Chamber of Commerce, about 50 Israeli companies have set up shop in Atlanta, in great part because of the city's substantial Jewish community. Israel is well known worldwide for outstanding technical innovation. If its best companies bring some of that creative energy to Atlanta in 2008, all the better.

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