Job cuts may finally be coming to an end, as only one in 10 IT directors expect to make layoffs this year, according to research by ReThink Recruitment.
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ReThink’s Recruitment annual IT director survey reveals that the number of IT directors predicting job cuts is at its lowest level in five years.
Only 25% said budget cuts are expected in 2013, down from 36% last year.
Furthermore, almost half (48%) of IT directors expect their departmental budget to increase this year, which is up from 39% last year.
Michael Bennett, director at ReThink Recruitment, said confidence about what 2013 has in store has spread through IT departments: “Factors that tended to make IT directors cautious last year, such as the possible ‘Grexit’ from the Eurozone, have subsided. Businesses are now hoping to bring years of IT job cuts or headcount freezes to a close and are ready to invest in their IT departments again.”
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“Expected IT department job cuts had been disappointingly high up until now. The big dip suggests optimism is moving beyond isolated pockets, such as the retail or banking sectors, or where companies were investing in mobile or customer app technologies.”
Bennett said IT investment now looks like it has turned a corner; however IT budgets are still under pressure.
“The importance attached to IT departments has grown enormously since the financial crisis, but paradoxically this has not been matched by growing IT investment. IT spending now looks like it has turned a corner,” added Bennett.
Attracting the right candidates
Rethink’s survey also found that 87% of IT directors are concerned about attracting the right candidates to available roles. In addition 83% said they are concerned about retaining talented staff.
Bennett said: “Salaries and headcount are beginning to move upwards following a long period of restraint.
“IT directors will be concerned about the depth of the talent pool available to fill the new roles being created, particularly when these roles involve newer technologies, such as app development or cloud computing.”
Furthermore, the report found that 67% of IT directors expect to increase pay next year. This is up from 59% last year and 47% the year before.