Changes in the marketplace have brought fundamental alterations to Silicon Valley. Business fundamentals have changed as companies identify ways to lower costs and reduce risks, while heightening the efficiency of engineering projects.

Chips are being designed, but the decision to move forward on a project takes longer, and companies are more cautious and far more cost-conscious. Yes, they are hiring as well, but it's selective, done carefully and at a slow rate. Companies are thinking first about cost, which may account for the upsurge in global hiring. As we've heard so often recently, one way to keep costs in line is to hire engineers in India, China, Egypt or some other offshore locale.

Entrepreneurism is alive, though ideas are being nurtured in nontraditional ways. In today's world, a startup will focus on its core competency and domain expertise, outsourcing everything else.

I see more engineering project activity, though companies are moving more cautiously. Large companies may be thinking differently, but smaller companies are waiting as long as possible and have fully analyzed a product's design and specifications, the market, competitive pressures and associated risks.

One example best illustrates this new business strategy. A local company began researching an engineering project last summer. It began meeting with design services companies in September, but pushed off the decision to do more analysis. It finally started the design project in January with first silicon in June. Only three, maybe four, years ago that company would have allocated resources in September 2003 and the product likely would be available today.

Silicon Valley is still in business and, dare I say, thriving, but the heady days of irrational exuberance and a laissez-faire attitude are only a fleeting memory.

Mahendra Jain, President and Chief Executive Officer, QualCore Logic Inc., Sunnyvale, Calif.