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The IT industry remains doggedly optimistic - with most IT companies planning to maintain or increase headcount over the next three months. According to Hudson ICT it may signal even more of an end-user move to outsourcing and cloud computing.

For over ten years Hudson ICT has tracked hiring sentiment among IT companies. Its latest Employment Expectations report, the result of a survey of over 4,400 local employers conducted in February and released today, found that IT sector employment sentiment has held steady at a net figure of 39.7 percent (the number of companies planning to increase headcount minus the number of employers planning to decrease headcount).

That is second only to the resources sector which has sentiment levels of 55.9 per cent. And it's significantly ahead of the national average which is showing a 21.7 per cent net hiring sentiment

While it's a moderately encouraging result Martin Retschko, national practice director for Hudson ICT, acknowledged that over the last year IT sector employment sentiment level has moved in a narrow band of around 1.2 per cent, signalling that hiring sentiment has been 'fairly flat over the last 12 months.'

Hudson's report is a forward looking estimate, but Mr Retschko said that it had over the years compared its indicator with what actually happened according to ANZ jobs data or ABS figures and that there had proven to be a 'very close correlation' between employee hiring forward sentiment, and what actually occurred in the market.

Mr Retschko said that coming at a time when many end user organisations were reducing or holding their IT professional headcounts flat, the IT industry's continued intention to hire could be seen as a signal that it was expecting more clients to outsource their computing requirements, or turn to cloud computing based solutions. This could mean end user skills requirement would plateau while the industry's hiring expectations would rise.

The rollout of the National Broadband Network was also having a positive impact on IT companies' hiring plans he added.

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Beverley Head

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Beverley Head is a Sydney-based freelance writer who specialises in exploring how and why technology changes everything - society, business, government, education, health. Beverley started writing about the business of technology in London in 1983 before moving to Australia in 1986. She was the technology editor of the Financial Review for almost a decade, and then became the newspaper's features editor before embarking on a freelance career, during which time she has written on a broad array of technology related topics for the Sydney Morning Herald, Age, Boss, BRW, Banking Day, Campus Review, Education Review, Insite and Government Technology Review. Beverley holds a degree in Metallurgy and the Science of Materials from Oxford University and a deep affection for things which are shaken not stirred.

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