IT Optimism Continues, Backroom Boffin Days over

IT Optimism Continues and the Days of Backroom Boffins Are Over, according to Hudson

September 5, 2005 - Optimism in the IT industry continues with further increases in salaries for key specialisations such as .NET and application and systems development skills, according to the IT&T Remuneration Guide released by Hudson today.

On the whole, salaries are up over the past year with average salary increases of between two and six percent. There are increased job opportunities in development, systems analysis and testing, with particular demand for:

* Test Analysts

* Business Analysts

* Application Development (Java /J2EE and .NET Technologies)

* Systems Analysts

* Systems Development and Architecture

* Technical Consultants, Senior Project Management

* IT&T Management

* Telco 3G Technical Specialists

* Cisco qualified professionals

* IT&T Sales and Business Development

"Within the telecommunications sector particularly, business growth, ongoing investment in leading edge technologies, VoIP business optimisation and increased uptake of 3G technologies is putting pressure on the employment market making hiring very competitive," says Campbell Hepburn, National Practice Manager at Hudson IT&T.

Campbell says contractor rates have remained more consistent with the most significant increases in system architecture and development, senior systems analysis, test analyst roles, as well as data warehouse specialists.

The government sector has already indicated intentions to move increasingly towards permanent or fixed-term employment arrangements over independent contracting.

"We're finding that many organisations are increasing looking to hire permanent staff due to cost savings and, just as importantly, they retain the IP gained during projects within the organisation," said Campbell.

"Overall though, the role of IT and telecommunications has changed and it's much more an integral part of business than in the past. The days of back-room boffins are over," says Campbell. "For many employers, the sought-after skill-set stretches beyond the technical, and now commonly includes project management ability, and often strategic analysis.

"That said, training houses are being kept busy with the growing demand for globally recognised and reputable ICT skill certification. Employers are looking for certificated new hires (particularly as prospective clients are increasingly demanding suppliers who are certificated in a range of specialisations), while employees and job seekers are expecting a high level of professional development in their roles.

"When we're recruiting for IT&T roles, we're doing more than assessing technical capability. By understanding candidates' behaviours and motivations we can help to ensure we select and retain the right people for the business to succeed."

Hudson says the broadening of the skills required within the IT industry does make the search for the right individual with the right skills even more challenging so companies need to explore alternative recruiting and HR approaches

"Employers are re-thinking and investing in their employee attraction and retention strategies, with employer branding and value propositions playing a key role in candidate attraction strategies."

The key to securing good people, says Campbell, goes beyond remuneration. Increasingly, with high rates of pay a given, ICT job seekers are looking for an offer that includes professional development opportunities, interesting variable projects and environments reflecting a sympathetic organisational culture, i.e. one that understands the value that IT can bring to the overall business.

Regional variances also seem to be emerging. The Wellington market as the most active, followed by Auckland then Christchurch. However the salary gap in these markets is narrowing with salaries becoming more consistent nationally.

"It's not surprising that IT jobs are strong in the government sector in Wellington, and accounting and finance are strong in the Auckland market," said Campbell. "While in Christchurch, the IT companies are buoyant with ongoing software application development."

Opportunities offshore continue to affect the sector in New Zealand. Feedback from New Zealand-based employers is that they are unhappy with immigration policies and processing time frames when looking to recruit internationally. Candidates attracted to New Zealand continue to cite lifestyle as a key factor.

For a copy of the full report or for more information please go to www.hudson.com

ENDS

About Hudson:

Hudson is New Zealand's largest and most successful recruitment and human resource consulting firm. We are a member of the global Hudson Highland Group (NASDAQ: HHGP) and work with employers across a variety of industries, helping you to attract, select, engage and retain the talent you need to succeed.

More information about Hudson is available at www.hudson.com

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