The high-paying jobs and the glamour associated with IT industry leads many professionals to move to Software. Many who join the IT industry along with good pay also look for a long term stability and job security. However, there is anything but stability in IT industry and job security is a myth. Mass layoffs are happening and traditional roles are getting wiped off with the advent of automation and AI.
The Layoff Culture in IT
Layoffs are common news in tech companies for several reasons. The layoff reasons cited could be an economic downturn, performance issues, restructuring, margin improvements, etc. And there is no longer a season for it, companies layoff throughout the year.
Economic Cycles and Business Pressures
IT companies are closely linked to market conditions. When the economy is growing or the market is expanding they hire in droves without thinking how they will manage the additional workforce. But as soon as the markets go down or there is an economic downturn, the same companies downsize quickly to maintain their margins. This practice can be seen from startups to the large multi nationals. And even big brands like Google, Facebook and Amazon are not averse to it.
Margins over Morale
One of the lesser-known reasons for layoffs is for companies to maintain margins and increase the returns for the shareholders. Many IT companies chose their quarterly results over employee stability or sentiments. Amongst the cost-cutting measures to increase the margins and shareholder returns is layoffs. Companies wash down all the talks of employees being the greatest assets and the company being a family and it reduces employees to mere numbers in a balance sheet (How much they make vs. How much they bring in).
The Automation and Artificial Intelligence (AI) Tsunami
Automation and the new wave of artificial intelligence (AI) are another big reason now for instability and job insecurity amongst IT professionals and rightly so. Automation and AI are threatening IT jobs in a way no other technological invention has ever done.
Routine Tasks Are Vanishing
Automation has already replaced many routine IT tasks. For example:
- System Monitoring: Automated tools like Splunk and Datadog have reduced the need for manual oversight.
- Code Generation: Platforms like GitHub Copilot are enabling developers to write code faster, reducing the need for junior programmers.
- Customer Support: AI-driven chatbots are handling customer queries, reducing the demand for support staff.
Upskilling: A Continuous Battle
The IT job is an ever demaning and involves continous learning and upskiling. Technology shift is happening at a breakneck speed and staying relevant in the market is quite challenging. It involves significant time and investment to learn new technologies over and beyond the regular job. However, many people cannot keep pace with these demands and ever-changing challenges, leaving them vulnerable to replacement.
Is Job Security an Illusion?
Job security is a foreign concept in the IT industry and anyone planning for major life goals or retirement dependent upon the IT job is fooling themselves. This industry is governed by its own rules unlike other established industries, loyalty or seniority doesn’t guarantee stability or job security:
- Project-Based Employment: Many jobs are projects or technology specific. When the projects end or the demand for that technology dries up, companies can let go of the associated members.
- Global Competition: IT jobs are no longer concentrated in a few big cities or countries. Whatever you are charging for a piece of work, someone somewhere else is charging much lesser for the same work. There is now a global competition which is eroding the previous margins of the companies and in turn driving down the salaries for some types of work.
- Unpredictable Market Trends: New technologies can suddenly change the need for skill set and can render many existing skill sets obsolete. The market trends are often unpredictable. Example while the companies were gearing up to take up the Blockchain & crypto work, the AI has overshadowed the demand for everything else.
What Can IT Professionals Do?
While the challenges are real, there are strategies to navigate the uncertainty:
1. Embrace Lifelong Learning
Irrespective of your liking, there is no escaping continuous learning in this field. Constantly upgrade and upskill yourself beyond your regular job. Invest in your learning and career, don’t solely rely on your company’s L&D department.
2. Diversify Your Skill Set
Don’t be married to a technology or framework. Technologies fade and frameworks fade away faster (look at javascript frameworks). Being a master of one doesn’t help with career stability. Learn to juggle with multiple technologies and different software skills. Even learn about (and try out) new IT roles and their requirements.
3. Build a Personal Brand
Don’t rely on your company and their designation for your identity. ‘Senior developer at XYZ company‘ doesn’t give you your identity. Create a personal brand by contributing to open-source projects, writing technical articles, and doing side projects that will differentiate you in a crowded job market.
4. Consider Alternative Career Paths
To ensure long-term predictability, focus on building skills for roles less likely to be automated or replaced, such as product management, strategy, and creatives. Chalk out a path that you will enjoy being in and investing time with.
5. Save and Invest Wisely
Despite doing all the right things, job security can never be guaranteed in IT. Sudden layoffs can happen and it can impact your financial stability and liabilities. Build an emergency fund and make the right investments. Try and build a second source of income that can help during the downturns.
Conclusion
The IT industry, though still among the top industries in terms of opportunities, presents significant challenges and fails to offer reliable job security. Layoffs and automation are here to stay and will even become more prevalent and all-pervasive. Build & grow IT careers with this knowledge but don’t rely on it completely. And first & foremost ask yourself the question do you really want to work in Software?
The job security in IT is more about keeping oneself upskilled and evolving along with the industry. Don’t rely on companies but on your skills to gain employment under all circumstances. The opportunities in IT industry are endless and exciting.