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Ask HN: Is there a bubble in the tech market? Is it about to explode?

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Ask HN: Is there a bubble in the tech market? Is it about to explode?

#1
During the last weeks I've heard about a lot of tech companies doing lay offs. Also, from the last years I've had the feeling that the salaries in tech are overinflated.

Does it mean that there's a bubble in the tech market and it's going to explode soon? Do we need to prepare for the tech apocalypse?

Re: Ask HN: Is there a bubble in the tech market? Is it about to explode?

#2
Tech is so intertwined in everything these days, much more so than the previous tech bubbles, that even if there is a prolonged slowdown I doubt techies individually are going to end up too effected. Tech firms sure. But who cares about them. They don't stand for anything worth shedding a tear about.

Re: Ask HN: Is there a bubble in the tech market? Is it about to explode?

#4
Personally, I think that there's definitely a correction going on, but it's far from explosion on the scale of a dotcom crash. "Tech" is not a separate industry now, but a set of technologies and professions that are used in a wide array of different industries. Companies in food, tourism, real estate and wherever else are hiring software engineers, dev ops and data analysts and are building "tech". And this tech that they're building, even if it's only "CRUD apps" that HN crowd loves to scoff over, is still creating a lot of real business value.

Re: Ask HN: Is there a bubble in the tech market? Is it about to explode?

#5
In London at least. Tech companies dislike the fact there aren't enough engineers to fill roles which has led to a few things. 1. Permanent salaries on the increase that also has a trickle down effect on other related IT roles.

2. A healthy contracting market with rates steadily increasing despite IR35. Contractors are deciding what they'll be paid and are still be lapped up. Nothings worse then a late or undelivered project to your end clients. Maybe layoffs are a strategy in shaking this trend?

There's certainly a recession happening and or on the way but why should markets such as the UK be worried when roles in my company at least go unfilled for 6+ months at a time.

Re: Ask HN: Is there a bubble in the tech market? Is it about to explode?

#7
The belt tightening has certainly begun. Down rounds and layoffs to reduce burn are all around [1]. These are fairly natural given the macro economic forces at work eight more.

Will it ‘explode’ and lead to an ‘apocalypse?’ Your guess is as good as mine.

Personally I don’t expect it to be like 99 again as many tech companies have real profit and VCs have plenty of cash… but I suppose there are plenty that don’t as well.

[1] - https://www.trueup.io/layoffs

Re: Ask HN: Is there a bubble in the tech market? Is it about to explode?

#9

In London at least. Tech companies dislike the fact there aren't enough engineers to fill roles which has led to a few things. 1. Permanent salaries on the increase that also has a trickle down effect on other related IT roles. 2. A healthy contracting market with rates steadily increasing despite IR35. Contractors are deciding what they'll be paid and are still be lapped up. Nothings worse then a late or undelivered…

Curious what a typical top 10% contracting rate in London is?

Re: Ask HN: Is there a bubble in the tech market? Is it about to explode?

#10

I live in a European country and our salaries will not go down nor do I expect any layoffs. Your question is very US/Silicon Valley centric.

No, I also live in an European country and I've heard about several companies around starting to freeze the hiring and doing some lay offs.
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