November 2008

Less job loss in the IT industry – even as the recession gathers steam


There seems to be varying views on the state of job cuts in the IT industry – and reductions or cancellations of IT projects as the recession deepens. But a leading IT recruiter is taking a positive view, saying there are still very few jobs cuts in the IT industry

Contrary to recent press reports, Karen Geldenhuys, MD of Abacus Recruitment, said that her company does not see any major job cuts looming in the IT industry. “We are seeing a lot of cutbacks at different non IT companies - and even projects that are not going through – but not in IT.”

This comes after a reputable research firm said that big job reductions were looming in IT as the recession starts to bite. But leading IT publication Computer Reseller News, concurs with Geldenhuys, saying in a recent editorial that, for the distribution channel at least, it seems to be business as usual.

“There are a lot of doomsayers out there and one can understand, because times are tough. But as things get tougher there is an ever higher demand for good IT people. Companies want IT people now to redesign systems and production lines to boost efficiencies. They are also needing to bring in new systems that are able to handle the cutbacks or to strategize and change so that they can make at least some profit – even after the cutbacks or lower production.

“My belief is that even in a recession people with great IT skills are still in demand - and can still demand the salary they want. In fact, people with top IT skills will always be in demand.”