Technology recovery under way, say bullish IT firms

3 Mar 2005

The majority of global IT firms are predicting revenue increases in 2005, while a significant minority are expecting to make layoffs, according to a new global IT confidence survey.

The survey, which covered 232 senior executives in global IT companies including Ireland, was conducted by Eurocom Worldwide, a consortium of global public relations (PR) firms and its local partner Simpson Financial & Technology PR.

The survey found that confidence levels among senior IT executives in global IT firms were high with a significant majority (84pc) expecting to increase revenues. Some 44pc expect to increase jobs while 52pc said that headcount levels would be maintained. Just 4pc predicted layoffs.

None of the respondents surveyed were less confident about the year ahead. Some 40pc were more confident and 60pc retained the same level of confidence.

“The study suggests that the tech recovery has well and truly kicked in,” said Ronnie Simpson, managing director of Simpson Financial & Technology PR. “While we will never get back to the heady days of the dotcom boom, that is to be welcomed. This study suggests a more sustainable recovery. This was heralded in our survey last year, which predicted recovery was likely to begin by the third quarter of 2004 at the latest.”

The Eurocom Worldwide survey predicts a continuing movement of IT manufacturing jobs away from traditional western economies to China, India and the central and eastern European region (CEER). Some 43pc of respondents see China as the global region that will see the highest growth in IT manufacturing jobs over the next three years followed by India (24pc) and CEER (17pc).

An overwhelming 86pc believe that the tech recovery has begun although a little over one in 10 (11pc) are still waiting for the upturn.

By John Kennedy