Friday, April 16, 2004

High tech job market perking up

Job losses in the high tech sector appear to be largely behind us. At least that's the conclusion Challenger, Gray & Christmas. The firm's most recent quarterly survey of telecom, electronics, computer, and e-commerce firms shows that Q1 job cuts were 64% lower than the previous quarter, only 29,513--the lowest figure since the outplacement firm started tracking the number in January 2001.

More generally, my own observations indicate a pick up in IT activity. Most of the IT consultants I talk to these days say that the signs are good--phones ringing, software evaluations underway, and postponed projects now being restarted. One associate tells me that he's had more calls in the past two months than he had in the past two years. The only cautious note comes from a business development manager for an IT staffing firm, who says that he has not yet seen a pick up in demand. But, if new projects are just now in the evaluation/planning phase, it would make sense that increased demand for development resources is still a few months away.

If a recovery in the high tech sector has truly started--and I believe it has--it pretty much ensures that the media focus on offshoring of IT jobs will soon move on to other subjects.

On the other hand, I've been predicting a recovery in the IT sector for almost two years now.

Related posts:
Yet more light at the end of the tunnel
More light at the end of the tunnel
Light at the end of the enterprise systems tunnel

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