At the same time, salaries have remained virtually flat for both IT staffers and managers. The Compound Annual Growth Rate (CAGR) for salaries has dropped to five percent for IT staff and 4.5% for IT managers since 1999. In 2005, the CAGR was 5.6% and 5.1% respectively (See Chart 3).

Outsourcing has contributed to the popular belief that due to it there are fewer jobs available, and employee morale and salaries are low. A majority (64%) of the respondents said that the number of IT jobs available in the U.S.A. is less today, as compared to five years ago (See Chart 2). Fifty-nine percent believe that employee morale has come down due to outsourcing.