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4 Reasons Tech Hiring Will Explode in 2012

Still stuck in the 2008, 2009 doldrums?  Well, it’s time to snap out of it, because as 2011 whisked by several key indicators fell into place suggesting strong growth and explosive hiring for the tech industry.

While we were focused on a government stalemate over the summer and Europe’s own economic woes this fall Boston’s IT scene came alive.  2012 is going to be big, and here are four reasons why:

Startups are Back

Venture capital sat on the sidelines long enough.  Over the last eighteen months VCs have been pouring money into young companies with big ideas.  With funding secured, start ups launch into rapid growth mode, creating jobs and scooping up some of the hottest tech talent on the street.  Besides the organic addition of new positions, the individuals hopping on board these fledgling firms are vacating hundreds of positions at their former employers.   Human resources hates this.   As soon as a letter of resignation is tendered, it means it’s time to draft up a new job description to fill the vacancy.

New IT Spending

It was a CFO’s easiest move over the last three years to save money by holding off on new application development or IT infrastructure enhancements.  They were rewarded for making do with what was already in place, and applauded for keeping teams lean and mean.  This year the tide shifted and companies began launching new IT projects.   Boardroom decisions already made have paved the way for increases in IT spending by 20%, 30%, and in some smaller firms, as much as 50% year over year.  The mood is no longer how to stay small; it’s time to grow.

Some of the increased IT spending is cyclical.  People need new desktops, printers, and mobile devices because the hardware is just plain worn out.   Some of the new dollars will go to finally upgrading software.  How many of us are still using Microsoft Word 2003?   Eight software years is like 40 in real time.  What about the mission critical internal applications that companies rely on to run their businesses?  That’s where the major new projects are coming in and filling up the vast workload for 2012.  Any company relying on web based applications or operating software in the cloud MUST upgrade just to stay current with browser compatibility.

We’re talking a tectonic shift in the importance of IT for 2012 and beyond.   Technology is no longer just a way to enhance the business.  It IS the business.  If you think that is an overly dramatic statement, tell your systems administrator to shut down your internet connection and count the seconds before your co-workers cry out in despair and lose their minds.

Companies are Hiring Recruiters

Log on to your favorite job board and run a search for companies looking to hire recruiters. Tech, healthcare, finance, start up blue chip, non-profit; everybody is beefing up their HR staff. You don’t hire recruiters unless you have some serious increases to headcount planned.  Not to mention staffing firms themselves are hungry to hire internally. Across the board, national recruiting firms and small boutique shops alike are looking to expand their teams just to meet their clients’ needs.   As fast as the industry was decimated in 2008 and 2009, the demand for good recruiting talent is back, and smart players who left the field in the downswing are returning to reap the new business.

History Doesn’t Always Repeat Itself, But it Rhymes

Remember when the tech bubble burst in 2000?   The NASDAQ crashed, and in its descent it took tens of thousands of tech jobs with it.  For about two years the landscape looked bleak with a war in the Middle East, gas prices spiking, and a country gripped in recession.  Recent grads were faced with a non-existent job market and qualified candidates fought for what few openings were there.  Sound familiar?

Without any fanfare, the economy came back through ‘03, ‘04, and ‘05 until we were at a healthy peak that saw an unemployment rate sub 5% for Greater Boston throughout 2006 and 2007.  Tech led the way.  The same scenario played out in 1991, 1987, 1984, and 1979.  There are larger economic factors at work here than just what we read in the news.

Smart money knows cover stories and headlines are reacting to the old news on the street. Watch 2012 open with more fear jitters, talks of a correction and flogs of writers foretelling a swift return to recession.  It’s easy and sexy to predict the next downturn.  It’s foolish to always believe it.  It takes some sand to gear up for success when the herd is still living in fear, but those that do will capture the full extent of the upswing and will be rewarded handsomely.   2012 is going to be a good year.

from BostInno http://bostinno.com/2011/12/09/4-reasons-tech-hiring-will-explode-in-2012/