Survey says tech sector recovery right on track

DUBAI - Recovery in the IT market will kick off in the second and third quarters of 2004 - and in some sectors it may have already begun, says a survey.

By A Staff Reporter

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Published: Thu 26 Feb 2004, 9:55 PM

Last updated: Wed 1 Apr 2015, 11:55 PM

An international survey by NettResults/Eurocom PR Worldwide, the global PR network based in Dubai, conducted the study among 500 senior technology executives in 25 countries in the Middle East and Europe.

It said that almost 50 per cent believe that recovery will begin in the second (27 per cent) or third (20 per cent) quarters of this year. One in three believes that the recovery has already begun.

“Despite the increase in IT equities over the past year, the signs of a full blown recovery have been patchy, but this survey suggests confidence returning to the sector for the first time in three years,” said Nick Leighton, managing director at NettResults.

Three quarters of the respondents (76 per cent) are more confident about tech prospects in 2004 than they were in 2003. One in five (19 per cent) report the same level of confidence while 5 per cent remain pessimistic.

The survey suggests controlled optimism on job prospects. 57 per cent expect to increase jobs over the next six months. 39 per cent say that recruitment is on hold while just 4 per cent predict a fall in employment.

The sector is more bullish on revenues than last year with 78 per cent predicting an increase in sales over the next six months compared to 54 per cent in the 2003 survey.

One in five (19 per cent) anticipate flat sales compared to 34 per cent last year while just three per cent are expecting lower revenues (11 per cent in 2003).

“Technology executives tend to be stoically optimistic on revenues but a more valid gauge of increased confidence is new job openings,” commented Leighton.

“We are definitely seeing a push towards a more optimistic outlook on the recruitment front compared to last year,” he added.

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