Vero Software is a 4-year-old information technology consultant catering to small business. Founder Bob LeRoy is asked: How many employees?

        “This week?” he said. That would be 15.

        After that, it depends on how much new business the company lands, and that's been tough lately.

        A year ago, Cincinnati's IT consultants had too much work and not enough people. These programmers and consultants numbered in the thousands, doing technical heavy lifting for clients such as Procter & Gamble, Fidelity Investments and GE Aircraft Engines.

        The work was so plentiful that software handymen such as Dave Erb of Covington quit big companies to work for themselves. “My model was to latch onto three or four smaller firms like Vero and get their overflow work,” he said.

        That lasted about 18 months, and he was forced to find a job. The Y2K rush ended, the dot-coms crashed and brick-and-mortar companies stopped spending. Vero's Mr. LeRoy said some cash-strapped dot-coms aren't paying their bills, and other companies are delaying projects.

        “I'm getting mixed messages. Some of them have frozen projects, waiting to see what happens with the economy,” Mr. LeRoy said. “Other companies are telling us they're so busy right now they don't want to take on another project. IT managers aren't allowed to bring on new people, so they wait.”

Better days ahead?
        The landscape is changing. MarchFirst had been Cincinnati's biggest IT consultant, but its collapse and layoffs have reduced its visibility. Last week, the ad agency Northlich Stolley called off its purchase of Bridge Agency, which specialized in Web development.

        The biggest consultant locally is now Cap Gemini Ernst & Young, with about 275 employees. There have been no layoffs, business manager John Blackburn said, but it's not hiring, either. The “bench” — the number of consultants not working actively on projects — “is higher than we'd normally like,” he said. “We're not laying off. We're looking at alternative sources of business.”

        Layoffs at some companies mean programmers aren't that hard to find. Last year, they were getting signing bonuses, extra vacation and stock options. This year, those perks are gone.

        “This time last year, we were paying outside agencies to find people for us,” Mr. LeRoy said. “I get more resumes now per week than I'd get in six months” a year ago.

        Kelly Conway of Cardinal Solutions, with 115 people in Madeira, said the silver lining is that big companies will eventually have to start spending again.

        “Eventually there's a backlog of work, and they don't have the people to do the work,” he said, and that's when they call companies such as Cardinal.

        Some see business improving this summer. Others can't see that far. Dave Erb found a job, but many others are still looking.

        E-mail John Byczkowski at johnb@enquirer.com or call 768-8377. Find a list of local New Economy companies at http://enquirer.com/neweconomy/.

Delta family has grown dysfunctional
Airline unions stand strong as ever
Comair's jets idled, workers not
BYCZKOWSKI: New Economy
Mystery shoppers focus on service
He's Mr. Public Relations
Lessons learned in the stands
Business Notes
What's the Buzz?