The Economics of Computer Tech Support

With the economic downturn of the American economy many businesses are faced with the problem of cutting cost but keeping quality high. Until recently the tech support branches of American businesses had been largely impervious to the problems faced by the economy. Recent studies, however, have shown that that this might have led many to a false sense of security. With no guaranty that the economy will be picking up in the near future many IT branches have had their income compensations stagnated without an increase in sight.  

With the economic problems many companies have been forced to cut expenses’ or cut funding entirely. The result of the cuts is that more and more of the jobs once performed by in-house staff are being moved out of the country by outsourcing. The problem with this is it creates a vicious cycle for the economy. By outsourcing businesses save money and that savings can be passed onto the client but ultimate by removing a worker from the equation the economy is further damaged. If the cycle continues long enough you end up with an even smaller distribution of wealth; after which is becomes difficult to recover.  

Perhaps the most troubling repercussion of this trend is the fact that people who would once be happy to take the IT positions in a company are now reluctant to take a chance. Worried that with the possibility of cuts there is little job security to look forward to. With the future uncertain it is hard to say just how the economic situation will play out. It’s possible that the current stagnation is unjustified but until the situation untangles itself it is very likely that many more companies will follow suit.

- Richard Keene
IT Computer Support of New York
Design and Optimization Department