IT market over the worst?

2 Apr 2003

A survey of senior executives in European technology companies suggests that the jobs situation in the tech sector may have stabilised with 50pc of executives expecting employment levels to remain the same over the next six months. A further 54pc believe IT revenues will increase over the next six months.

The survey, carried out by Eurocom PR Network in association with Dublin financial and technology PR firm Simpson FTPR, covered 147 executives in technology firms located in 12 countries including Ireland, as well as companies in South Africa and the Middle East.

The survey found that an overall recovery in the technology markets is expected by 46pc of respondents by the end of this year. Some 32pc think recovery will be delayed until the first quarter of 2004, while 10pc gloomily predict the last half of 2004 or later.

The majority of the respondents believe that the war in Iraq will delay recovery. However, there are indications from the survey that the technology market may be over the worst, with 54pc of respondents expecting an increase in revenues over the next six months, while 34pc expect them to remain the same. Only 11pc believe their revenues would decrease over this time.

The survey found that 50pc of respondents expect employment levels to remain the same over the next six months. One in three senior executives expect jobs to increase, while 16pc anticipate further job cuts.

Eurocom PR Network’s founder and CEO, Tom Burgess said that the survey suggested that hope is returning to the long beleaguered technology market and that IT players need to get ready to bounce back.

“Vendors need to get ready to capitalise on this and get their marketing back on track even on a tight budget. If revenues increase without employment growth then margins will improve. When this happens, investment will increase and ultimately employment. We need to be more positive about our market but at the same time remember the lessons we have learnt over the last two years,” Burgess said.

By John Kennedy