Utility computing will strike further jobs blow, warns Gartner
Utility computing will strike further jobs blow, warns Gartner
Dec 16, 2004: While the debate over IT jobs has focused largely on the issue of offshore outsourcing, Gartner has warned that a number of other factors will impact the security of jobs in IT departments.
Most notable of the areas which pose a threat to IT jobs, according to analysts, is the automation of IT infrastructure services and business processes, through concepts such as IT as a utility and on-demand computing. The impact will be felt predominantly by internal IT organisations, but external service providers (ESPs) will also see a drop in headcount as automation begins to replace customisation.
"The trend towards offshore services has monopolised attention in terms of job losses," said Gianluca Tramacere, analyst in the IT Services and Sourcing group at Gartner.
"There is less awareness that increasing reliance on highly automated infrastructures will significantly reduce the need for manual procedures and direct involvement of the workforce. IT automation can mean greater flexibility and cost efficiency for businesses. However, it makes it harder for IT personnel to defend their jobs, as this evolution, accelerated by the global economy and the competitive marketplace, is seen as an inevitable consequence of IT progress." Tramacere stressed this will require IT staff, both in-house and those employed by ESPs, to move their skills further up the value chain.
"ESPs, including IBM and HP, are investing heavily in new technologies that will allow the automated delivery of IT services," said Tramacere. "Examples of technologies that are emerging include 'self-healing' hardware, rapid development tools and software components, and tools that automatically manage systems and services.
"In the future, strengthened by the economies of scale, technical enhancements and adaptable pricing, organisations will be able to access IT utility infrastructure services more competitively with a reduced reliance on internal resources," continued Tramacere. "Ultimately, organisations will be driven to access utility infrastructure services more frequently and to reduce the size of their internal IT operations."
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