[toyg]

Oversaturation, as typically defined, would result in falling wages, either in absolute or real terms, and that doesn't seem to be the case yet. In fact, the growth in IT salaries is probably among the few that regularly outstrip inflation rates. You have no "oversaturation" until coder rates match more traditional (and really saturated) white-collar jobs like accountancy, where salaries are much lower.

That doesn't mean the job market is not getting more competitive - it might well be, but that does not mean it's oversaturated yet, not even saturated.