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Information Technology in Sydney

Demand for technology professionals continued to be strong in 2006 across all of our key markets. IT professionals who can demonstrate robust technical skills along with business acumen and excellent communication skills are in high demand and Sydney continues to attract a lot of interest from overseas candidates. This year we saw consistent levels of skilled migration from Europe and Asia, and an increase in skilled migration from South America. We saw fewer IT graduates entering the market in 2006 than we did in 2005 and the effects of this are likely to add to the skills shortage in the next few years. A significant change we witnessed in 2006 was an increase in the number of businesses that welcomed speculative applications from candidates with relevant skills sets. Savvy businesses have been keen to create roles for people that they know they will need in the coming months, rather than hoping those skills will still be available down the track.

During the year, many organisations were faced with retention issues, as employees' confidence in the job market continued to increase. Employers have also found the job market increasingly competitive with quality candidates receiving multiple job offers and counter offers from existing employers. Permanent candidates cited working environment, company culture, cutting edge technology and salary as the most important deciding factors when accepting a job offer, whereas contractors cited rate, cutting edge technologies and length of contract as the most important factors.

In the financial sector, a joint venture between a European investment bank and a major Australian financial brand created considerable contract and permanent opportunities for developers, testers, business analysts and project managers with previous financial services and/or banking experience. The demand for IT banking professionals is set to increase further as a major Australian bank begins its expansion into the Eastern States.

The major telecommunication companies continued to recruit permanent and contract staff in a bid to ensure the success of major projects including 3G. Sydney is also the hub of the southern hemisphere's largest infrastructure project, in excess of $60m, which has fuelled the demand for infrastructure engineers. This project is likely to increase the demand for SOE and desktop engineers throughout 2007, as well as integration engineers and project managers.

Attraction and retention of staff will continue to be a key issue for businesses in 2007. The market looks set to continue to be candidate short and this is likely to have an inflationary effect on salaries and contract rates, but those organisations that offer leading-edge technologies and stimulating, positive work environments are most likely to enjoy good levels of staff retention and attraction. Organisations that have a proactive approach to recruitment, are responsive to applications, and which appeal to passive as well as active candidates are likely to be the most successful recruiters in 2007.

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