| Topic Name: |
Why sudden this .COM surge? |
| Message Name: |
It's Dotcom's fault |
| Date Posted: |
12/06/2001 |
| In Reply To: |
When the IT industry was growing so fast with the help of booming .COMs, what happened suddenly that has brought the whole IT industry of the world to stand still. Many new recruits here in India have been asked by their employers to find some other job due their US clients ditching them. Is the situation expected to improve? Who caused this sudden slump in the software market. Give some details. |
| Message: |
Who caused this sudden slump? I know you're in India but you should be better informed about what is happening in the IT world if you are going to be in that business. The dotcoms collapsed more than a year ago, mostly because they were completely overvalued and people realized it. They were more concerned about having a high IPO price than creating a valuable product or service. Most dotcoms did not even break even on their core compentencies (what ever product or service they provided), they expected to make all their money on banner ads on their wibsites, but those banner ads linked to websites that hoped to make THEIR money from banner ads on their sites. Money was changing hands without any value being created. It was a faulty business model. When stockholders finally realized it (many too late) confidence in the entire technology sector, including software and IT, that made their money setting up systems for dotcoms, waned. Another factor that led to unsustainable growth of the IT sector was anticipation of the Y2K Bug. Once 2000 rolled around not with a bang but a whimper, companies were no longer frantically updating their systems, and not willing to pay some kid straight out of highschool with some computer skills $200 an hour. So to answer your question, expect to see IT recover to a sustainable level, but nothing like it was in '99. The problem for job seekers is that for quite a while there will be a glut of people who got education and experience in IT to take advantage of dotcoms and Y2K fears, and anyone who wants to get into IT will have to compete with them. Supply is now and for quite a while will outstrip demand, keeping offers scarce and salaries low. My advice: find another line of work.
|
|
