Techland's Tentative Job Recovery

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A lot of companies want candidates with experience in IT services that customers view as money saving, such as cloud computing, software delivered over the Internet, and so-called virtualization, which helps companies make more efficient use of existing hardware.

Down the road, Thibodeaux expects demand for jobs in green IT. "We're years off from having those jobs make a big impact on the economy," he says. Many had anticipated that the government funds to stimulate the cleantech industry would have already begun to flow through the economy. "It hasn't quite happened yet," says Iga Hallberg, vice-president of business development at HelioVolt, an Austin (Tex.) company that makes thin-film solar products and has raised $130 million in venture capital to build a factory. Still, at just under 100 employees, HelioVolt plans to grow in the next 12 to 18 months, and Hallberg says it will likely hire dozens of people in production, facilities, engineering, sales, and other positions to help run the plant.

Companies like HelioVolt that have venture capital backing can be a good avenue for job seekers. "When things get really tight, businesses try to conserve cash and folks often slow innovation down, but venture-backed companies do that far less than other companies," says Steve Fredrick, general partner at Grotech Ventures, a private equity investment firm in Maryland and Virginia, and founder of StartUpHire.com, a Web site that lists more than 10,000 job openings at more than 2,000 companies with venture capital backing. Of those listed positions, roughly 50% are selling software and IT services. Fredrick says the companies that are hiring in volume on his site are Tesla Motors, maker of the high-end electric sports car, and Space Exploration Technologies. The top three cities for the largest concentration of jobs at venture-backed companies are San Francisco, Boston, and New York, Fredrick says.

In some cases, companies eager to add workers are hiring temps or contractors to meet staffing needs. "If you've been putting off IT initiatives, you may dip your toe in the water but not want to hire full-time—we're seeing that right now," says Dan Foley, president of Randstad Professionals, a staffing agency that supplies temp workers to the IT sector.

Other companies are trying to pick up workers in low-cost locations, whether in the U.S. or abroad, to save money. Jamie Ryan, CIO of Aspect Software, a company that sells software and consulting services for communications systems, says that in the coming six months his company will look for specific skills and expertise, and he'll be careful about where he hires. "If I can hire somebody in India, I will," he says, adding that in the U.S. he'll also choose lower-cost locations. He says that salaries for a particular position can vary across the country, from $100,000 in San Jose to $87,000 in Boston or $80,000 in Chicago.

Not Quite a Turnaround

Managers say that while there's great talent available now, some workers are reluctant to relocate to lower-cost areas of the country because they're unable or unwilling to sell homes without taking a loss. Hiring is starting to pick up at Rackspace Hosting again, says Lew Moorman, the company's chief strategy officer. He estimates there are more than 100 open positions on the company's hiring page. "We are finding talent, more than we have in a long time," Moorman says. "It's very encouraging, but our hurdle in this economy is moving the talent."

Still, others say it's too premature to try to call a bottom to the tech market or to try to call a turnaround. "We have not seen a surge in recruiting that would indicate there's an end to the recession," says Tom Silver, senior vice-president and chief marketing officer at tech job board Dice.com. In June there was a 2009 low of 2,501 tech jobs posted on Dice.com for Silicon Valley. The number had increased to 2,600 jobs by Aug. 11, but it's still down 50% from last year, he says. "When you see a month-to-month increase, people feel great, but it has not translated into a big change in hiring behavior," he says.

Indeed, while many economists and other forecasters say economic recovery is at hand, joblessness is expected to persist and unemployment may yet rise.

That's cause for caution across the board, but at Platinum Solutions, optimism abounds. Fresh from adding about 60 employees since January, CEO Rossi expects to continue adding workers through the year. "It's a good position to be in," Rossi says. "And I'm grateful we're working in this sector."

King is a writer for BusinessWeek.com in San Francisco.

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