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Source of Optimism for Tech Comeback??

By TZapf ·
On almost every discussion board, tech website etc. I keep seeing that people are assuming that the tech slowdown is a short term thing, and it WILL pass shortly. I was just wondering if someone could explain to me why this is. Why do people assume this is short term, and that things will soon get better.

Corporate profits continue to fall, layoffs in the tech sector are increasing, and nobody wants to spend alot on IT anymore it seems. I truly to do hope this is short term, as I amgraduating with a BA in Information Systems in December, and am freakin out because I have a huge amount of loans to pay off and am not sure if I can find a job.

I guess I'm just asking for someone to explain to me why the slowdown is ASSUMED to be short/temporary??

Thanks,

TJ

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Well...

by epepke In reply to Source of Optimism for Te ...

On the most banal level, people still have to get paid, taxes still change, etc. This hasn't changed, and I don't see people going back to paper ledgers any time soon. The internet is still a good way of communicating and doing business. People still want content in their homes.

On a hopeful level, we still have to grow the technology beyond its adolescence, and adolescence doesn't come to a halt even if adolescents go into clinical depression for a year or so.

On a practical level, the money still exists; it's just distributed differently.

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As long as there are people who

by EMJ In reply to Well...

give us a need to create a Top Ten List of Craziest Support Calls (see discussion under "Hot Article Threads") there will always be a need for IT professionals. Technology is NOT going away, and if anything, there will always be computers, software, the Internet, etc. and always room for new ideas within Technology to keep it from getting stagnant. I have worked in IT for higher education, a law firm, and am now in healthcare. Where there is a business, there is usually some form of technology, whether it be basic or bleeding edge.

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There really isn't any...

by Packratt In reply to Source of Optimism for Te ...

To be honest about this, there is no real reason or actual sign that things are going to get better in the short term.

Yes, the other posters are correct in saying that the slowdown in tech, (and every other sector), is temporary... Yet, when we think about it everything is temporary, all things end at some point, it's just a question of when.

So far the leading indicators, which a few weeks ago looked very promising, are actually pointing to a longer and possibly deeper slowdown or possible recession. Unemployment continues upward, at 4.5% now, and when unemployment goes up consummer spending goes down, and this is what drives 3/4 of the economy. Also, middle class and professional wages are stagnating and even going down and these are the people who do 3/4 of consumer spending.

As for the tech sector... Sure, people and companies still want technology, but they will try to do more with less and will look for the cheapest solutions even if they are not the best solutions. More overseas outsourcing will drop incomes further and reduced spending on new technologies will prolong the slowdown.

Anyway... Most analysts now openly state that a upswing is not anticipated until next year. But they tend to give optimistic statements so that investors don't panic... Oh, by the way, that's why you hear that things will get better soon... No real reason really, just optimism and attempts to keep consumers calm and spending.

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