The Obama Administration Attempts to Save IT Jobs in the US

The US manufacturing industry isn’t the only industry to see its jobs outsourced; the IT industry has as well. Remote technologies coupled with a technologically competent workforce in countries such as India where wages are low have fueled an exodus of IT jobs as companies outsource IT in order to save money.

Among the many pledges President Barack Obama has made to the workers of the United States is a pledge to create good-paying jobs that can’t be shipped overseas. Since his inauguration, Obama has introduced a number of proposals to provide incentives for job creation. For example, the Hiring Incentives to Restore Employment Act, which was signed into law on March 18, 2010, granted employers a $1000 tax credit and an exemption from paying the employers’ share of Social Security tax for each unemployed person hired between February 3, 2010 and January 1, 2011.

While these tax benefits may be attractive to employers, some have argued that they’re but a drop in the bucket compared to how cheap labor is overseas. With an average salary of $75,000 for an IT professional in the US, it remains dramatically cheaper to hire an IT professional in India for a fraction of that amount, roughly $8,000 per year, in India even with the tax incentives.

One area that looks promising for IT professionals is health information technology. The American Recovery and Reinvestment Act, which was signed into law on February 17, 2009, includes a long term goal of computerizing health records with funds earmarked for building infrastructure for electronic health records. According to the Information Technology & Innovation Foundation, the stimulus could create or save over 82,000 jobs in industries like IT services, hardware manufacturing, and software development. The foundation also expected nearly 30,000 jobs created to support the stimulus’s commitment to improve broadband access and 64,000 more jobs dedicated to improving the nation’s power grid.

The Treasury Department reported in early August 2010 that an estimated 5.6 million workers have been hired under the stimulus package, though it’s unclear if any of those jobs were IT jobs. According to the HIRE Act Report 2010, 13 percent of those 5.6 million workers came from “professional and business services,” the closest category that could include IT professionals.

Between the stimulus, the HIRE Act, and a tentative recovery, many IT professionals are feeling hopeful. As the administration continues its work to retain jobs, enrolling in IT training courses can better qualify candidates for new positions. With an emphasis on health information, broadband infrastructure, and the power grid, focusing on IT certification training in those areas could be beneficial.

The Obama administration has created packages and incentives to strengthen the US workforce. Computer based training courses, IT certification boot camps, and online classes help those wanting to take advantage of the opportunities available to get the skills and knowledge needed.