Volatility in IT skills pay in the U.S. and Canada remained high from October through December 2009 but showed notable improvement from the prior calendar quarter, according to the latest update of Foote Partners’ IT Skills and Certifications Pay IndexTM (ITSCPI) released last week.

“Skills pay volatility matters because it is one of the most useful pieces of information for analyzing demand and predicting the future,' says David Foote, Foote Partners co-founder and Chief Research Officer. "Along with a few other key benchmarks, we keep a very close eye on volatility because accurately forecasting the arrival of better times during an economic downturn is everybody's obsession."

IT Skills Pay and Management 'Comfort' Levels

Foote Partners defines volatility in IT skills pay as incidence of gains or declines in premium pay earned by IT professionals for specific technical and business skills, including certifications.

The analysts recorded the highest volatility in 11 years in July, August and September. By year's end 2009, there was a 10-point improvement in the 406 tech and business skills the firm tracks. The improvement indicates that stability is making a comeback although nowhere near what could be considered 'normal'.

"The volatility numbers tell me that the major decisions have been made and employers are now in an intensive 'tweaking' phase, shifting resources around, trying to get comfortable," said Foote. "For example, whether to move up work budgeted and scheduled for later in the year or, conversely, move work out to a later time. The problem with postponing projects is that skills we are forecasting to be in higher demand months from now will also be more expensive then, and that will affect their budgets. It's a chess game."

IT Skills Pay Volatility During 2010

Foote Partners forecasts high skills volatility rates through the first half of 2010, driven by increased talent demand by IT services firms. As the economy continues to steady itself and corporate hiring restrictions start to relax, lower volatility can be expected in the second half of the year, approaching more normal rates in 2011.

About the IT Skills and Certifications Pay Index

Foote Partners' IT Skills and Certifications Pay Index is a comprehensive and regularly updated benchmark survey of pay premiums for certified and noncertified IT skills. The ITSCPI currently reports market values and pay adjustments for 424 individual IT and business skills earned by 22,850 North American IT workers.

About Foote Partners

Foote Partners LLC is a Vero Beach, Florida based independent IT research and advisory firm that provides pragmatic and forward-thinking advice about managing technology and the IT professional workforce. Founded in 1997 and comprised of former Gartner and META Group industry analysts, McKinsey & Company and Towers Perrin consultants, and former corporate HR, IT, and business executives, Foote Partners has been a thought leader and trusted advisor to more than 1,400 clients on five continents seeking research and advice on managing IT’s impact on their businesses and customers.

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