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I've been programming for 15 years, and have been doing web application development since 1994. The "Web Designer" role was a farce position designed by self-taught Photoshop groupies who read "FrontPage For Dummies" or "Program HTML In 10 Days" and thought they could make a living at it.
UI design is much more involved than just coming up with a pretty interface, and I know of very few businesses that still treat it as a glorified graphic design position. UI designers rarely touch either code or graphics tools themselves, their job is to take a set of program or website requirements and design intuitive navigational flowcharts that take into account both ease of use and potential server loading.
Graphic designers, likewise, also rarely code. In modern web programming teams, the graphic designer is handed a list of required screens and a brief summary of the text type or data elements to be presented on each screen. The designer then assembles the graphical elements required for that screen into a page template.
The programmer takes the flowchart and images, and makes it all work. No graphics work, and no navigational comprehension required. He's given the parts to the structure, and simply has to assemble it.
The problem with the old "web designer" paradigm was that it required people to have an excellent understanding of human/computer interface concepts AND an excellent understanding of graphics arts technologies AND good programming skills in a number of languages. While there were some people that managed to master these skills, 99% of "web designers" were only adept at one or two, when all three are REQUIRED to build a decent site.
And here's why there's no future in web design. UI design is the kind of thing that's done once, when a site is initially created, and then isn't done again until the site is redesigned. It makes no sense to keep an employee on staff that you'll only use now and then, so this has been permanently relegated to consultants. Likewise, graphic design skills are typically only occasionally needed in all but the largest organizations, so graphic artists are also only brought in as consultants by 95% of employers. Programmers are the only people needed regularly, as functionality tends to change with some regularity. In most institutions, however, it's more economical to teach your C++ or Java programmer PHP or .Net than it is to bring in a dedicated web programmer.
The idea of a full-time web specific job is a fad. When I began working at my current job a few years back, we had no less than FOUR people who's jobs simply involved updating the text on a dozen various websites. They thought they were "skilled" because they knew how to use Dreamweaver and Hotmetal, and that as "webmasters", they were indispensable.
Last year I implemented a content management system that allows unskilled secretaries and clerks to update their own web content with about 10 minutes of training.
Today, we have no webmasters.
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