Top-paying IT jobs are drying up with overall demand for executives in the IT sector at its lowest point since March 1994.
Demand in the IT sector slumped 16 per cent last month compared to February showing an overall drop for IT professionals of 37 per cent since September last year, according to the EL Executive Demand index.
Grant Montgomery, managing director of the executive search company and publisher of the EL Consulting Australia index, said the sharp decline has hit the "bottom" and the current downturn will move in a positive direction by the third quarter of this year.
"The severe and consistent falls in the top IT jobs are a telling reflection on the extent of the rationalisation of the new economy."
According to the findings, most of the weakness was in the private sector with the public sector still showing strong positive demand as governments continue to spend on IT development.
Orica Australia CIO Philip Nesci said the survey reflects industry conditions at the moment.
"We usually tend to follow the US and Cisco predicts another three quarters of missed sales targets, so I guess it will be another 12 to 15 months before things turn around in Australia," he said.
Hoyts Cinemas CIO Patrick Teh said the index is a reflection of business sentiment.
"Companies are not investing in IT as much and I think demand will drop for the next six months at least until sentiment turns around. IT investment just isn't there and we are still in the early days; when the US economy picks up Australia will follow suit."