At least it means that some IT projects are being funded.
Typical recovery means that the company hires contract programmers first, because the big HR department hasn't unfrozen hiring yet. Also, contract allows the company to get a view of their work habits/relationship/work quality before making a "permanent" decision.
Then, once you find a few good workers, you hire them as soon as the HR department allows it. If you find an especially good worker with the right skill set, a VP will justify an override to the HR department anyway.
Finally, as the company realizes they are spending too much on contractors, they'll start hiring direct.
At least that's the way it used to be. Many large companies (EDS, SABRE, IBM) are using 3-6 month contracts as THE way to hire new technical employees. With a 3-6 month contract, the company can quickly get rid of malcontents, lazies, tardies, misfits, and other people with a lot of personal problems that impact their work performance. They make job offers to hard-working productive people.
So, I wonder if the increase in contractor activity is actually a back-door to an increase in hiring in 3-6 months? Still, you may have to go through the contract, first.
Glen Austin