I think a more telling number is that over 500,000 jobs have been lost to the IT sector in 2001. Dice.com a job search site said that they are seeing about 30,000 job listing in a month which was down from agout 100,000 a month in 2000 and before.
A consulting association is saying that 15% of its members have been looking for assignments (unemployed) for over two months. In the New York City area consulting billing rates have dropped to late-1980's levels.
M&A's may be the rehabilitaion of business models or just the bigger fish consuming the smaller ones at bargain prices.