I could see a lot of them going to contract work.
A lot of them are probably contractors now, I was for the last 15-20 years if my IT career that made it bearable for most of those years
Not a particularly good plan given the present situation. For example, after the 9/11 attacks the feds fell short on projected revenues. Feds told the states that that Uncle Sam couldnt be their sugar daddy that year. The states had already spent the money they were anticipating. They turned to their vendors and said that projects had to be cancelled. So one of the first things fed, state, and supporting vendors did was fire all the consultants and contractors that they could. Locally at least, a large percentage of IT was out of work almost simultaneously. This competition for the few jobs available created significant downward pressure on wages and working conditions. As the rest of the economy began to move again, employers turned increasingly toward foreign help for IT positions.
The last IT position I had I wasnt even a person. My headhunter found me a position snuck into the state budget as a piece of rented equipment.
That contract ended in 2003(?) And I havent been back in IT since.
I can see something similar happening again soon. Those with other skills are likely best exercising them soon.