WSJ writer Dana Mattioli announced this week that....."After delaying technology purchases and upgrades during the downturn, businesses started spending strongly again in the fourth quarter, lifting profits at tech suppliers including EMC Corp., SAP AG, International Business Machines Corp., and Xerox Corp.
Companies are signaling they’re more comfortable spending money on technology now that sales and profits are expanding. “What drives tech spending are profits,” said Bill Whyman, head of tech strategy research at equity research broker dealer ISI Group Inc. Corporate profits have been surging the last few quarters and spending usually lags profits by three quarters, he said.
World-wide information technology spending is forecast to increase 5.1% to $3.6 trillion this year, according to market research firm Gartner Inc." As Technology spending increases, Managers need to be prepared for the groundswell; increased hiring among vendors to supply the Tech companies with products and services - thus we'll see an upswing in Tech vendor output and a warning to management - as always, when business picks up, Management drives urgent needs to add talent. More talent is needed to grow and sustain the demands of your clients. Managers also need to be aware that this is also the most volatile time for existing talent to jump ship. The lure of higher salaries, more challenges, title promotions drive good talent away from many companies during this time. Now is the time to be focused on talent retention as well as hiring.
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