hi folks I want to know, why the

[jakhan]

hi folks

I want to know, why there is a slump in IT market in USA?
what are the root causes of massive job cuts by big companies?


Jak

 

[mbdw6708]

There has been a change of demand. People no longer need the latest and greatest technology. Why do you need a pentium 4 to run Word processing software. The downturn in the economy has caused people to stop buying new computer products. The big companies had a great deal of inventory in stock to try and keep up with the high growth of the past. Now that inventory has to be written off and the companies are no longer doing as well as they were.
Dave Waters

http://www.supplychaintoday.com

 

[BillPatterson]

This business goes through cycles.

We saw a bust in the dot-coms in 2000. This latest boom-bust was due to the fact that people discovered (in the middle of 2000) that the Web is not a bottomless money-mine.

We saw a bust in the mainframe market for talent in 1999. This next to latest boom-bust was due in part to the great preparations taken by major companies for Y2K. Now that there is no need for those preparations there has been a cutback. More booms will come, we just don't know when.



Bill