The Information Technology Industry
The Information Technology industry (IT) consists of many companies. Some are big with hundred thousands of worker, some are small with only one or two persons. Some build software to be used by the public when others build software for specific customers. Some sell software as products when others provide software as a service. Some work on contract to assist companies with particular project when others only solve specific problems. Some help set up infrastructures, network systems, and manage data centers when others just develop websites and help establish online business etc.
Companies that build software that are use by the public or “Commercial-off-the self” such as Microsoft, Oracle, Adobe, VMware, Symantec, etc. are mostly very large software companies, they always in a “hiring mode” with thousand new employees hired each year. Most of them prefer to hire new graduates because they can easily be trained to fit into the company working environment.
Companies that build specific software to automate business process in finance, manufacturing, logistics, bank, sales and marketing to meet specific needs of customers such as Accenture, IBM, SAP, and Oracle etc. prefer to hire workers with some experiences since their works require extensive knowledge on their application like SAP, PeopleSoft etc.
Outsourcing service providers are companies that perform IT works for customers. They perform tasks from testing, programming, maintenance to building the entire project, large and small, for a fee. If needed, they can even take over the entire IT function for customers. Companies such as Accenture, Infosys, TCS, Wipro, and Mahindra etc. often hire a variety of workers, from newly graduates to experienced developers. Many are hired to code and test large programs; some are hired install a software package on a user’s system and modify it to the user’s specific needs. Some are hired to update existing systems, or design customized Web sites.
Consulting services companies are companies that help customers to plan and design information systems that integrate hardware, software, and communications technologies. They help customers select the right hardware and software products for a particular business or project, then develop, install, and implement the system. In addition, they often train and support users. Consulting companies only hire experienced IT workers and train them to be consultants. Most consultants have at least five to ten years of experiences in specific area and often work on special projects as advisor or supporting role.
Some consulting companies focus only on specific area such as security issues. Today many companies are using the Internet and intranets which has resulted in increasing issues on information security. Security threats range from damaging computer viruses to online fraud and identity theft. As companies use the Internet to exchange information with customers many things can happen. In order to mitigate this threat, companies are employing the services of security consulting firms, which specialize in all aspects of IT security for them. These companies assess computer systems for areas of vulnerability, manage firewalls, and provide protection against intrusion and software “viruses.”
Facilities management companies are companies that provide management and operation of IT systems and facilities. They send their workers to customers’ location to help in provide disaster recovery services; help customers prepare for a major malfunction of their information systems. They back up data and create strategies for business operation during and after a shut-down. They help companies recover lost data after a disaster has occurred. Cloud computing service companies are another type of computer facilities management but instead of go to customer’s location, they move customer’s IT systems into their location, store data in their own facilities and manage everything for customers. Customer still gets access to their systems via the internet.
IT is an industry that relies on knowledge and skills. IT workforces consist mostly of college graduates with 82% having bachelor’s degree or higher. There are several types of workers depending on their education and degree specialization. Today Software engineer and software developers make up the vast majority of IT workers, and account for about 68% of the workforce. Their duties vary by occupation, from developing computer software; manage information systems, and maintaining network security. These workers design, write code, test, and maintain software applications. They often work under the supervision of a software manager. Today most developers use object-oriented programming languages, such as C++, Java, or Python. These are languages taught at most Software Engineering and Computer Science programs. As they gain more experiences, some assume more responsibilities and become Technical leaders, System architect, Project managers, or Business analysts.
Technical Leaders and System Architect design and integrate hardware and software to make information systems more efficient. By implementing new software applications, or designing entirely new systems, they help companies maximize their investments in machines, personnel, and business processes. To perform their jobs, they use data modeling, structured analysis, information engineering, and other methods. They prepare charts for developers to follow for proper coding and perform cost-benefit analyses to help management evaluate systems. They ensure that systems perform to requirements specifications by testing them thoroughly.
Network Systems and Data Analysis make up another large group and account for approx. 25% of the IT workforce. These workers design and evaluate network systems, such as local area networks (LANs), wide area networks (WANs), and Internet systems. They perform network modeling, analysis, and deal with the interfacing of computer and communications equipment. With the explosive growth of the Internet, this group also includes a variety of occupations related to design, development, and maintenance of Web sites and their servers. Web developers are responsible for day-to-day site design and creation. Webmasters are responsible for the technical aspects of the Web site, including performance issues, and for approving site content.
Information Systems Manager direct the work of software engineers, business analysts, developers, programmers, and other IT support workers. They analyze the computer and information needs of their organization and determine personnel and equipment requirements. They plan and coordinate activities such as the installation and upgrading of hardware and software; programming and systems design; the development of computer networks; and the construction of Internet and intranet sites. A majority of these managers graduated from Information System Management (ISM) programs.
IT support personnel provide technical assistance, support, and advice to customers and users. This group includes workers with a variety of titles, from technical specialists to help-desk technicians. These workers fix small problems in information systems, identify problems and provide technical support for hardware, software, and systems. They answer telephone calls; analyze problems using automated diagnostic programs, and resolve recurrent difficulties encountered by users. A majority of IT support personnel have Associate degree (Two-year degree) some also have certificates in particular technology such as Microsoft or Cisco etc.
Compared with the rest of professions in the economy, IT is one of the careers that pay the highest. Average salary of IT workers in the U.S is approximately $87,000 a year. Due to the shortage, most graduates get offers higher than that. IT is also a young industry with a majority of workers in the 25-to-40 age range. This reflects the industry’s explosive growth in employment that provided opportunities to thousands of young workers who possessed the latest technological skills.
IT industry is considered a “Clean industry” because of it does not produce pollution or waste products (Of course, old computer equipments are still waste products). Most workers in the IT industry work in clean offices even some may work in computer operations centers. Today, with the internet, more work can be done from remote locations using e-mail and the Internet and about 18% of IT workers are working from home. For example, a programmer can work from home with their computers linked directly to the location of their company. Computer support workers can access into a customer’s computer remotely to identify and fix problems. Today, many large IT projects are globally distributed with workers spread all over the world so they can build software 24 hours and 7 days a week.
IT industry is also one of the most profitable businesses. There is a phrase among Wall Street traders that “No business is better than IT business, it is better than oil, it is better than finance and it is even better than “drug”. Before 1995, oil is the most profitable business and oil stock is highly valued but since the beginning of the information age, information technology has changed that. Of course, some “overhype” has led to the “Dot.com” bust in late 1990s but today, information technology is still the most profitable business. For example, Apple is now the largest and most profitable company, bigger than Exxon-Mobile Oil Company and more profitable than any finance or trading companies in the world. Among the list of the ten richest people on earth, seven come from information technology. Two third of the millionaires in the world also come from information technology. Few years ago, these millionaires come from the U.S and Europe, now most of them come from India and China. The most interesting fact is 80% of these super rich are young and self-made IT millionaires who are using their knowledge and skills rather than depend on family connection or wealth heritage.
According to a government study, there are approximately 15 million IT workers in the world today but the current demand is about 20 million, so there is a shortage of 5 million IT workers. The study predicts that as more companies will use IT as the main driver function and push the demand to 25 million IT positions needed by the year 2020. However, current university systems can only produce up to 18 million IT workers at the maximum, which will bring the shortage to about 7 million workers. Even with the ambition of India to produce 2 million IT workers per year and China’s five-year plan to produce 1.5 million IT workers by 2020, it remain to be seen whether supply can meet demand or not.
According to U.S government report, IT industry is one of the fastest growing industries today. Its growth is predicted to continue for another twenty more years as the demand continue to soar upward. Job opportunities in IT are excellent for its workers, with the highest salary among university graduates. As more companies are relying on information technology, demand for IT workers will continue. The report stated that the fastest growth is in the maintenance of network and computer security.
A security specialist is one of the new positions in IT. This is a specialty area that requires an advanced degree such as Master or Ph.D. Currently the industry need more security specialists to asses IT system’s vulnerability and implement security measures. In addition, more software developers will also be needed to develop new antivirus software, programs, and procedures. Therefore, employment of security analysts, software engineers, and consultants in areas such as disaster recovery services, security programming, and systems security has risen rapidly.
The demand for networking and the need to integrate hardware, software, and communications technologies will drive the demand for software engineer with architect and integration skills. The expansion of the Internet and the proliferation of wireless technologies have created new demand for a wide variety of products and services. For example, the expansion of the wireless Internet has brought a new aspect of mobility to Information Technology by allowing people to stay connected to the Internet by smart phone anywhere, anytime. As businesses and individuals become more dependent on this new technology, there will be an increasing need for workers that design and integrate computer systems, so that they will be compatible with mobile technologies. The IT industry has sent an urgent request to several universities asking them to have training courses in mobile applications, such as programming using Apple or Android platforms to meet the new demand.
The healthcare industry, in addition, is expected to increase its use of information technology. The adoption of mobile health, e-prescribing, electronic health records, and other IT platforms tools will push demand for computer systems design services. The demand for custom programming services should also increase as the popularity of open-source software and service-oriented architecture (SOA).
Given the rate of growth expected for the entire IT industry, most IT areas will continue to grow rapidly. The most rapid growth will occur among network systems and data communications analysts. The growing use of sophisticated computer networks and Internet and intranet sites, and the need for faster, more efficient networking products will increase the demand for their services. Other rapidly growing occupations include computer software engineers, database administrators, and network and computer system administrators. Business and financial operations occupations will also see rapid growth as information technology has become a vital aspect of business. Because of the larger and more complex systems and new technologies, the job market has switched rapidly in hiring of workers with at least a bachelor’s degree or even higher. Today global market has dictated the need for more distributed IT workers, people who have technical knowledge as well as soft-skills and foreign language skills.
Given the rate of IT growth all over the world, job opportunities should be excellent for qualified IT workers. The best opportunities will be in specialist occupations, reflecting the continuing demand for the high-level skills that are needed to keep up with changes in technology. To IT workers who are working, continuous education is needed as it is the only way to keep advancing their careers. To students who are still wondering about what to study, they need to know about the potential and possibilities of having stable and good career in the IT industry. They need to select the right university, the right program that have training in alignment with IT industry needs.
Sources
- Blogs of Prof. John Vu, Carnegie Mellon University
