ICT sector health check

While the overall economy is showing signs of softness the local ICT sector has started the new financial year on firm footing, according to the latest Longhaus-ITCRA Australian Tech Index.

The index, a composite of eight indicators draws on information from the Australian Bureau of Statistics, Department of Employment and Workplace Relations (DEEWR), the Australian Stock Exchange and ITCRA's SkillsMatch data, to provide a summary of changes in the level of ICT business activity within Australia.

As the infographic below highlights, the sector has managed to push on in the third quarter of 2012 with seven of the eight indicators measuring positive.

The July to September quarter of any given year is traditionally seen as an important gauge of the health of the ICT sector, as employment contracts are renewed and new budgets approved.

Longhaus managing director Peter Carr said the overall sentiment in the sector remains positive with CIOs and ICT decision makers keen to commence new ICT and business projects

“There was also a slight increase in CIO confidence for the fourth quarter of 2012, suggesting promising times ahead,” he said in a statement.

The only blot is the continued slump in ICT vacancies. According to the survey, ICT vacancies for September, as measured by DEEWR in its Internet Vacancy Index for ICT professionals, fell for the eighth consecutive month.

Julie Mills, CEO of ITCRA, said the number of online ICT vacancies during the third quarter fell to a record low level since DEEWR began reporting in 2006.

“Data regarding placements made by recruiters is more positive, albeit mixed. ITCRA's most recent SkillsMatch Dashboard, which measured placements made by ITCRA Member recruiters in the third quarter of 2012, found that placements had been relatively steady throughout the past 12 months,” Ms Mills said  

“While data released by other organisations has been less positive, no one reported significant increases in ICT placements during 2012, leading ITCRA and Longhaus to conclude that the ICT sector in this regard is mirroring the broader ‘steady as she goes' sentiment in the Australian economy.”