Technology Sector Remains Upbeat on Jobs, Growth Outlook
Results from Eurocom Worldwide Annual IT Confidence Survey: IT Executives Anticipate Growth in Jobs
Eurocom Worldwide, the Global PR Network, has released the results of its Annual IT Confidence Survey. More than 350 senior IT industry executives were polled by Eurocom Worldwide member agencies around the globe, and the responses indicate that confidence is strong for 2008.
The survey shows that the international technology industry remains upbeat despite the recent credit squeeze worldwide. Over half (53%) of the 350 senior executives surveyed in technology firms across global markets are more confident about prospects in the IT sector in 2008 compared to 12 months ago. However, confidence levels are down on 2007 when a record 65% said they were more optimistic.
“Eurocom Worldwide’s IT Confidence Survey has been carried out for seven consecutive years now. Over time, the results show that the IT sector is successful at adjusting to global financial realities. Challenges such as credit fall-outs and global employment transfer may be real, yet technology companies continue to show business growth and jobs creation,” said Network Director Mads Christensen, Eurocom Worldwide.
The survey shows that 68% expect to increase jobs in their company over the next 12 months, up from 63% last year, with only 6% predicting a decline in employment in their firm. Just over a quarter (26%) said job levels would remain the same. 88% expect revenues to increase, little change from last year at 91%.
The Eurocom Worldwide report is positive about continuing demand in the IT jobs market. 48% of respondents say that it is more difficult to recruit IT staff now than 12 months ago. This is up from 38% last year. Only 4% say it is easier to recruit.
Jobs most in demand remain software engineers which 54% find hard to recruit, followed by international sales personnel 38% and domestic sales people 34%. *
However, the survey confirms the continuing flow of tech manufacturing as well as services jobs to lower cost centres. 65.5% say that their country is losing IT manufacturing jobs to centres such as China, India and Central & Eastern Europe (CEER). 50% say that IT services jobs are also being exported to lower cost centres.
As last year, respondents to the Eurocom Worldwide IT Confidence Survey remain skeptical on the US economy. Almost 50% are less confident about prospects for the US economy than they were a year ago (against 33% last year). 38% expect the tech heavy NASDAQ to mark time and show no growth with 24% predicting a fall.
The biggest threats to growth in the IT sector are seen as being broadly divided between the slowdown in the US economy cited by 48%, followed by a skills shortage (42%), oil price rises (37%) and poor health of the financial services sector as a result of the subprime crisis (34%).*
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* Note: These particular figures do not add up to 100% as respondents could pick up to three answers in priority.
The survey data were collected in November and December 2007.
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About Eurocom Worldwide
Eurocom Worldwide is a global alliance of independent, privately owned communications agencies offering unrivalled expertise in international communications campaigns executed by local people. Eurocom Worldwide has 29 member agencies comprising over 1,200 communications specialists and consultants in 60 national capitals and centres of commerce around the globe. For more information, visit www.eurocompr.com