We're all IT workers now and this article contains some good news and some bad news for us all. Let's look at the bad news first.
The immediate impact of the credit crunch will be to throw thousands of employees out of work. Non-essential projects will be put on hold which will hit contract workers hard. Outsourcers in countries such as India will suffer as they rely on the financial sector for a very large proportion of their income.
It's obvious really. In the short term companies will look to make quick savings and it's cheaper not to renew contracts than to lay employees off.
In the longer term savings from outsourcing, especially to countries with lower rates of pay, will outweigh the costs of redundancy. What's not clear is when companies will move from short-term cost-cutting to longer term savings.
The article suggests home working will continue to grow as companies sell off real estate. It also suggests there could be a silver lining arising from the crisis that's engulfed huge financial institutions such as Lehman Brothers, AIG and Britain's Northern Rock. Governments are going to look at legislation which will reduce the risk of them getting into a similar mess. The Sarbanes-Oxley Act which followed the accounting scandals which brought down Enron and others created large numbers of jobs.