A new survey has revealed a gloomy outlook for the IT industry during the year ahead.
Senior executives in the IT sector have admitted to feeling nervous about the business prospects for their organisations, according to results published today by the Chartered Management Institute (CMI).
The body polled 1,243 managers and business leaders in the sector from its membership, and found that half were worried about 2009 - with 28 per cent admitting to feeling pessimistic' and 22 per cent saying they were uncertain' about what next year would bring.
The survey also found that rising business costs, low levels of credit, the impact of employee disputes and low skill levels were all high on their list of reasons for concern.
The CMI said it was clear from the findings that business confidence in the sector is being eroded by the economic climate and the knock-on effect of cashflow problems.
Over half (56 per cent) said that rising energy costs would have a negative impact on their business next year, while 42 per cent said that the lack of credit availability would create problems.
Respondents also remain concerned that efforts to kick-start the economy may stall, with 81 per cent in the IT sector suggesting that consumer spending will plummet despite falling interest rates. And 40 per cent said rising levels of personal debt would hit business in the New Year.
The cost of redundancies also emerged as an issue, with 27 per cent expressing concern over employment disputes and 36 per cent worried about the impact of labour shortages.
And, three out of 10 employers in the sector suggested that gaps at the higher end' of the skills spectrum would have a negative impact on their performance in 2009. The skills issue is compounded by 69 per cent predicting a decrease in training and development as well.
Despite all of the pessimism, the motivation to succeed was still strong at an individual level, where 17 per cent of those surveyed still intend to change jobs next year and seven per cent planned to start their own business.
A further 21 per cent also want to build their personal profile and 34 per cent were committed to developing business contacts or networks.
But skills development was seen as the most popular route to employability, with 30 per cent in the IT sector claiming they intend to take up a qualification or course in the New Year and 22 per cent resolving to build transferable skills'.
Jo Causon, CMI marketing and corporate affairs director, warned: "Now, more than ever, is the time to invest wisely because if organisations think that developing competence is expensive, they should also consider the cost of failure and mistakes."
