Market Wrap – Information
Technology
August 2009
Market overview
The IT sector has been hard hit by the global economic downturn with a large number of jobs
lost and recruitment freezes in place. Salaries have fallen and the sector remains subdued.
However there are a few ‘hot spots’ that have defied the slowdown, and firms that have
weathered the decline are using the opportunity to acquire talent at lower costs.
Latest trends
Within the technology sector, the worst affected area has been IT Solutions Providers in the
SME category. There has been a significant drop in recruiting in these firms, according to Kushal
Wijesundera, Principal Consultant, Kelly Executive IT Practice.
Most of the firms in this category have shed staff, ranging from technical back office
professionals to front office sales staff. The larger IT Solutions providers have also been
impacted and many have downgraded forecasts for the coming year. Most of the major players
have shed staff and have recruitment freezes in place.
Also impacted
have been project managers, especially those with an IT infrastructure
background. Due to projects on-hold or cancelled, many project managers in this space have
found themselves out of work. The handful of companies still recruiting
have the luxury of a
vast pool of experience levels and technology expertise,
with the final decision generally
coming down to value for money.
The IT market is also seeing a fair degree of consolidation and opportunistic acquisition of
companies that are cash-rich, as firms look to the coming six months to cement their position as
market leaders.
Salary ranges have taken a significant drop, especially within the contract space. Project
management candidates who once commanded an asking rate of $1000 a day are now looking
at rates closer to $700 a day, still considerably more than what they would earn as permanent
employees.
Positions in Demand
Amid the gloom, there remain a few bright spots in the IT market.
SAP professionals are still in high demand as a result of the large core replacement programs
being undertaken in sectors including energy, utilities and mining, which had been committed
before the downturn.
Within the financial services sector, there is strong demand for technology specialists with a risk
and analytics background.
Across the IT sector, key positions in demand include:
SAP skills
Business analysis skills
IT risk associated professionals
Outlook
In spite of the subdued trend, there are tentative signs that the worst may be over. The
IT
market is starting to exhibit a slow recovery,
though probably not at a pace that most
candidates and recruiters would wish.
About the Market Wrap:
Kelly Executive collates the latest recruitment trends, forecasts and opinions from its specialist recruitment staff in
this monthly market wrap. The Wrap covers industries including finance, IT, sales and marketing and operations.
Kelly Executive recruitment consultants quoted in the Wrap are available to further discuss any of the topics.
Please contact Bob Bowden, Foresight Communications, for more information.
Bob Bowden, Foresight Communications, 02 9241 2811, 0412 753 298,
bbowden@bowmac.com.au
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