DOTCOMS LOSE THEIR DAZZLE

Over the past few months, some of the shine has been taken off the idea of a career in the dotcom world. Reversals in Internet valuations since April have been accompanied by a spate of job losses in internet companies such as Amazon, Alta Vista and ChannelSpace, all of whom have sought to cut their costs. And while Boo had its own set of problems, its failure - accompanied by the loss of 300 jobs - could deal a blow to entrepreneurs trying to raise capital for start-ups in Europe, and perhaps in the U.S.

Evidence is emerging that such e-commerce setbacks are also starting to stem the flow of graduates and executives to internet companies. Just 14 per cent of the class of 2000 will join a dotcom, according to the seventh biennial survey of graduates from 11 of the top US business schools, conducted by Duke University's Fuqua School of Business.

"For the past year [the internet] has been the premier choice for the cream of the crop and has drawn employees away from the top companies," says John Challenger, chief executive of Challenger Gray & Christmas, the outplacement consultancy. "We may well see a shift back to more traditional companies."

Even among those still looking towards the internet for career opportunities, a change of mood is clearly evident. With e-tailers that serve consumers over the web hardest hit by the slump in high-tech stocks, jobseekers are becoming far more cautious about the viability of internet companies and the category in which their potential employers are operating.

John Ferneborg, president of Ferneborg and Associates, the San Mateo-based executive search consultancy, sees evidence of this. "People are becoming a lot more selective," he says. "There are going to be a few winners in each category and people are looking very closely at the business plan and the road to profit."

"A year ago, everyone was jumping in the pool," says Ted Martin, the founder of Martin Partners, a Chicago-based executive search consultancy. "Now people are doing a lot more research into the segment they're looking at joining. If you take a space such as pets, which was hit very hard, many candidates wouldn't touch that category today."

But, while caution prevails, the supply of candidates ready to join dotcoms remains healthy, according to recruitment consultants. "We don't see people jumping ship," says Mr. Ferneborg. "When you have companies such as K-Mart setting up independent internet operations, you know it's here to stay."