Management consulting firm Janco Associates estimates that the flurry of news around Lehman Brothers, Merrill Lynch and Bank of America — and separately HP with its layoffs planned around the EDS integration — could cause the loss of some 13,000 IT-related jobs.
According to Janco’s estimates, “There were over 230 IT professionals who made over $250,000 per year. Many of those jobs will just go away. Add to that the 180 plus IT professionals at Merrill Lynch making over $250,00 per year and there will be a glut of to IT professionals that will be on the street by the end of the year.”
Janco 2008 research shows that outsourcing causes quite a stir at companies. According to the firm, more than 71% of employees get laid off, about 8% quit within 90 days of the outsourcing and just about 20% continue on in their position at least 90 days after the outsourcing began.
