IDC predicts skills crisis round the corner

NEWS The last quarter of this year will see a turnaround in the US economy and a corresponding increase in demand for jobs which will lead to a labour shortage in the IT industry both in the US and in Europe. According to research firm IDC, GDP (gross domestic product) in the US will rise to 2.5 per cent in 2002 and 3.5 per cent in 2003, from 1.7 per cent in 2001. John Gantz, chief researcher at IDC, told silicon.com that Europe will recover faster than the US, with "rebound" starting in Q4 as company's jockey for investment opportunities. "I feel pretty good about our forecast," said Gantz. IDC's report is based on information from economists and in-house research. Its primary research source came from Consensus Economics, international economic survey organisation, which polls more than 600 economists each month to obtain their forecasts and views. Consensus Economics research was based on the Gross Domestic Product and IT market in countries worldwide, which will see the "switch from cost-conservation to investment," said Gantz. Through investment demand for staff will arise according to Gantz, because "if you track revenue to industry you can assess the number of people required," he added. The area of fastest growth will be in demand for ebusiness skills. IDC said IT departments over the next nine quarters will spend $1tr, posing a great opportunity for businesses to boost market share.