Job reductions in IT begin to taper off

VERNON HILLS, USA: In the midst of a slowly developing trend toward recovery in the information technology arena, data from the latest CDW IT Monitor indicates the first glimmer of good news about hiring.

While industry sentiment falls short of promising new hires, the number of large companies planning on reducing IT staff continues to fall rapidly.

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According to the August CDW IT Monitor, only 10 percent of large companies say they may be reducing IT staff in the next six months, down from 17 percent in February. In addition, the number of medium-size businesses planning to reduce staff fell to seven percent, down from nine percent in April.

For the first time since December 2008, the overall IT Monitor score, an indicator of the direction, momentum and mindset of the U.S. IT industry, climbed one point registering a reading of 70.

“The fact that the largest employers are decreasing planned job cuts in IT is an encouraging sign in the marketplace as we continue to make small steps toward recovery,” said Mark Gambill, the company’s executive responsible for market insights. “While we’re not there yet, this is a positive step that paves the way for future hiring and creates a more stable environment across the industry.”

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The tapering of IT job reductions is also consistent with higher expectations of improved performance. According to the IT Monitor, 63 percent of large businesses expect better performance in the next six months compared to 43 percent in February.

“Six months ago was a low point across a variety of sectors, and it’s encouraging to now see some of that negative outlook begin to turn around,” said Gambill. “The stabilization we’ve seen in the last two IT Monitor readings appears to be gradually evolving into small signs of recovery.”