'Don't ditch IT staff' warn experts

Large companies should not be laying off their IT staff unless they want to spend a fortune on recruiting people who do not understand their business set up when the business picks up.

The warning has comes from ITcontractor.com which says that laying off existing IT workers to cut costs during the economic downturn would be bad for long-term business.

Gerry McLaughlin from the IT Portal said that recruiting staff and waiting for them to get up to speed "will not be as productive in the short and medium-term".

Mr McLaughlin explained that cutting IT staff is a "kneejerk reaction" that many big businesses resort to during economic downturns, and did not demonstrate management skills.

IT jobs at small and medium-sized enterprises (SMEs) are more secure in this recession than those at larger companies, added Mr McLaughlin.

This is because smaller businesses are less likely to inhabit the sectors most affected by the downturn, are more unlikely to be under the influence of shareholders and the stock market, and are less able to outsource departments.

According to an article in ComputerWeekly.com, many SMEs are planning to cut IT budgets by four per cent, but staffing levels will be largely safe, although cuts will occur in under a third of businesses.