IBM Acquires EZSource

The digital transformation revolution is already in full swing, but for companies with legacy mainframe applications, it’s not always clear how to get in the game. IBM announced an acquisition that could help.

Oracle Goes Deeper Into The Cloud

Right on the heels of a similar acquisition last week, Oracle has announced it will pay $532 million to buy Opower, a provider of cloud services to the utilities industry.

New Data Suggest IT Hiring Increasing

Whenever IT hiring increases, as it did last month, the default explanation from analysts is this: The economy is improving.

That might be true, and it may well explain the U.S. Department of Labor’s report today that showed the U.S., overall, added 214,000 jobs last month.

Of that total employment gain, IT hiring grew by 7,800 jobs in October, compared with a gain of 6,900 jobs in September, according to TechServe Alliance, an IT industry group.

Another IT labor analyst group, Janco Associates, calculated last month’s IT gains at 9,500 jobs.

Government data can be reported in different ways, depending on which job categories are included in the IT job estimates, and it is why analysts report job numbers differently.

Hiring trends are also affected by Labor Department adjustments, and the government’s adjusted data adds nearly 25,000 telecom jobs over the past two months, according to Janco. Because of this adjustment, Janco termed the recent growth in IT over the past several months “explosive,” while TechServe put last month’s results as “modestly stronger.”

There is no one reason for October’s gain. An improving economy may be at the heart of any answer. Independent of the government numbers, Computer Economics, in a recent report on contingent versus full-time hiring, said it is seeing a drop in the use of contract workers at large companies and more reliance on full-time workers, which is a sign of an improving economy.

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Is The Tech Industry Going Independent?

The tech industry is undergoing a shift toward a more independent, contingent IT workforce. And while that trend might not be cause for alarm for retiring baby boomer IT professionals, it could mean younger and mid-career workers need to prepare to make a living solo.

About 18% of all IT workers today are self-employed, according to an analysis by Emergent Research, a firm focused on small businesses trends. This independent IT workforce is growing at the rate of about 7% per year, which is faster than the overall growth rate for independent workers generally, at 5.5%.

The definition of independent workers covers people who work at least 15 hours a week.

Steve King, a partner at Emergent, said the growth in independent workers is being driven by companies that want to stay ahead of change, and can bring in workers with the right skills. “In today’s world, change is happening so quickly that everyone is trying to figure out how to be more flexible and agile, cut fixed costs and move to variable costs,” said King. “Unfortunately, people are viewed as a fixed cost.”

King worked with MBO Partners to produce a recent study that estimated the entire independent worker headcount in the U.S., for all occupations, at 17.7 million. They also estimate that around one million of them are IT professionals.

A separate analysis by research firm Computer Economics finds a similar trend. Over the last two years, there has been a spike in the use of contract labor among large IT organizations — firms with IT operational budgets of more than $20 million, according to John Longwell, vice president of research at Computer Economics.

This year, contract workers make up 15% of a typical large organization’s IT staff at the median. This is up from a median of just 6% in 2011, said Longwell. The last time there was a similar increase in contract workers was in 1998, during the dot.com boom and the run-up to Y2K remediation efforts. Computer Economics recently published a research brief on the topic.

“The difference now is that use of contract or temporary workers is not being driven by a boom, but rather by a reluctance to hire permanent workers as the economy improves,” Longwell said.

Computer Economics expects large IT organizations to step up hiring in 2014, which may cause the percentage of contract workers to decline back to a more normal 10% level. But, Longwell cautioned, it’s not clear whether that new hiring will be involve full-time employees or even more contract labor.

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Support Calls To Help Desks Are On The Rise

At a time when technology is supposed to be getting simpler, less complex and easier to manage, more people are calling help desks for assistance than ever before, according to a new report. That’s one of the findings that HDI, formerly known as the Help Desk Institute, revealed in its recently released 2010 study of help desk trends.

What HDI found is that the number of incidents reported to help desks via chat, e-mail, telephone, self-help systems, social media, the Web and walk-ins is rising, with 67% of all help desk operations experiencing increases in 2010. That’s roughly the same percentage who reported an increase in 2009.

In recent years, many organizations have moved to centralize their help desk operations and establish a single point of contact for workers, said Roy Atkinson, an analyst at HDI, whose members represent a help desk community of about 50,000 people.

Those centralization efforts have improved incident data collection, which helps to explain the spike in reports. Moreover, creating a single point of contact, and offering multiple ways for people to reach the help desk, encourages users to seek assistance, Atkinson said.

While centralization and better record-keeping may explain much of the increase in reported calls, it doesn’t completely explain it. Atkinson said another part of the explanation could be the fact that IT complexity is actually increasing, especially as users seek to connect multiple devices, including mobile phones, tablets and laptops to corporate networks. Read More…….