The survey of 818 Australian IT managers found while 30 percent will not replace staff as they leave, half of those surveyed will focus on retaining top performers and training remaining staff.

Job prospects are looking worse still, according to March research by the CIO Executive Council, which found hires have been frozen in two-thirds of the 122 organisations surveyed.

The same research reported that 40 percent of organisations have cut jobs over the last six months and a further 58 percent have cut contractors.

Budget cuts were behind 93 percent of hiring freezes, and 87 percent of reductions in contractor spend.

Hudson ICT director Frank Wadsworth said the global financial crisis has doubt within organisations.