Economic downturn bites into IT salaries, says consultant

It used to be a case of name your price when it came to IT salaries. But that is all set to change with US economic downturn looming says Janco Associates

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By  Greg Wilson Published  February 5, 2001

It used to be the case that sky was very nearly the limit when it came to IT salaries in the States.

However, the much talked about economic slowdown in the US is expected to hold down salaries of IT professionals, indicates research from consultants at Janco Associates.

The six month salary survey covered almost 40,000 IT staffers and executives at 990 large and mid-sized companies in the US and Canada. Results show the average base salary exceeded $100,000, up from $97,000 the year before.

According to Janco CEO, Victor Janulaitis, the pay scale reflects the continued demand for and shortage of personnel. However, he predicts this pace will slow over the forthcoming 12 months, regardless of the continuing shortage of IT talent.

The economy “is taking a toll on salary increases,” Janulaitis says. “People aren't moving jobs; they're gun-shy due to the volatile market.”

Overall compensation packages, including bonuses and stock options continued to rise on the previous year to 40%. Increased demand in areas such as networking and systems operations is contributing to high salaries.

But while companies keep adding to compensation packages, "there is a major shift from fringe benefits to actual dollars," Janulaitis says. Too many folks were burned by failed startups, he adds. "Now, cash is king."

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