This leaves the IT Index at two-thirds the level of demand registered during June 2002, and compares to a fall in E.L. Consult's overall Executive Demand Index of 14 percent in June compared to May. The government sector dragged down the Index with major falls in Queensland and NSW, and smaller falls in Victoria, the ACT, South Australia and Western Australia.
However, there was some good news with the IT Index including the only sector to experience a rise in demand, the IT private sector. This rose by six percent month-on-month, due to strong performance in New South Wales, Victoria and the ACT.
"For the last two quarters we've seen that the IT sector is ever so slowly starting to get off the ground in terms of people reinvesting in the sector," Grant Montgomery, managing director of leading executive search firm E.L. Consult told ZDNet Australia . "[This fall] is more seasonal than a long term trend. This is the first significant fall of any kind for the past six months."
Montgomery also criticised the corporate mindset that saw IT as a good place to reduce costs. "If any sector more than any other needs continual investment and planning it's the IT sector, and the idea that you can cut IT costs to the bone without any long term strategic plan is fraught with danger," said Montgomery. "IT is heavily involved in improving interactions with customers."
