From the Wires
IT 2013: Leaders Evenly Split on Spending Outlook; IT Applications and Infrastructure Services Top Spending Increases, Outsourcing Largest Decrease; Limited Concern with Boomer Exodus
Dec. 12, 2012 10:37 AM
TEKsystems®, a leading provider of IT
staffing solutions, IT talent management expertise and IT services,
today released new
research showing that IT leaders are almost evenly split on
expectations regarding budget increases for 2013. Additionally, IT
leaders are gravitating toward investing in core application and
infrastructure services and staff, with a greater interest in permanent
hiring. Finally, the vast majority of organizations have no concern
regarding loss of skills as it relates to baby boomer retirement.
More than 600 IT leaders (CIOs, IT VPs, IT directors, IT managers) were
polled in September 2012 to understand the current state of IT spending,
skills needs and workforce issues to identify critical areas. The full
results of the survey, a video and infographic are available from
TEKsystems at www.teksystems.com/resources/research/annual-it-forecast-2013.
Key highlights from the survey include:
Spending and Challenges
IT leaders are nearly evenly split on whether IT budgets will grow
versus remaining the same or declining. Forty-eight percent expect
an increase in their organization’s IT budget, while 52 percent expect
it to remain the same (27 percent), decline (16 percent) or didn’t
know (9 percent).
IT leaders’ confidence in whether their budgets will support the
business needs of the organization closely mirror spending
expectations. Fifty-four percent are confident that budgets will
be adequate, while 46 percent are neutral (25 percent), unconfident
(16 percent) or didn’t know (5 percent).
IT leaders still see budget as their greatest challenge. In
ranking the top challenges, “acquiring necessary budgets” ranked
first, followed by “attracting, retaining and developing top talent”
and “improving IT performance/efficiency.”
Areas of Investment and Organizational Impact
Application and Infrastructure services spending top the list. When
asked which areas IT leaders expected spending to increase, 49 percent
expected growth in IT Applications Services spending and 47 percent
expected growth in IT Infrastructure Services spending.
Outsourcing and education services spending lose momentum.
Sixty-nine percent of IT leaders expected spending for outsourcing
services to stay the same (39 percent), decline (20 percent) or didn’t
know (10 percent). For IT education and training, 70 percent expected
it to stay the same (44 percent), decline (17 percent) or didn’t know
Top three impact areas include newer trends such as business
intelligence and cloud computing, yet security still remains high.
Business intelligence, cloud computing and security were the top three
trends expected to have the largest organizational impact.
Additionally, more than 58 percent of IT leaders expected the trend
towards cloud-based and “as-a-service” offerings to drive an increase
in demand for IT skills, while less than 15 percent expected it to
Operations a top concern. IT leaders ranked “operations” as
having the largest increase in IT needs, followed by “marketing/sales”
Hiring, Compensation and Skills Replenishment
IT leaders slightly positive towards salary increases. In terms
of compensation, 55 percent of IT leaders expect their IT staff’s
salary to increase, while 44 percent expect it to remain the same (34
percent), decrease (4 percent) or didn’t know (7 percent).
“Core skills” expect to see highest salary increases. When
asked which IT staff salaries were expected to change, more than 40
percent of IT leaders expected salary increases for developers,
engineers, project managers and security experts. More than 30 percent
of IT leaders expected salary increases for business analysts,
architects, analytic experts, cloud experts, help-desk and support,
mobile and .NET technologies. Mirroring the expected salary changes,
developers, architects and analytics experts ranked highest in
difficulty of obtaining. Surprisingly, social media skills saw the
lowest expectation of positive salary growth with less than 30 percent
expecting an increase.
Organizations expect an increase in permanent headcount over other
hiring models. For those IT leaders that are expecting to increase
headcount, 39 percent expect to increase
permanent IT headcount and 36 percent expect an increase in
temporary headcount, while only 16 percent expect an increase in
Organizations don’t seem concerned with the loss of skills based on
baby boomer retirement. Just slightly more than one-quarter (27
percent) of IT leaders foresee the loss of skills due to baby boomer
retirement as a problem for their organization. Sixty-three percent
felt it would not cause an issue, while 10 percent had no opinion.
Additionally, of the 27 percent of respondents who did see baby boomer
retirement as a problem, only 15 percent had any retention programs to
encourage baby boomers to postpone retirement.
“IT leaders are practically split on expectations for IT budget
increases and still recognize budget procurement as one of their
greatest challenges in the current economic climate. As such, IT
leaders’ focus on investing in core application, infrastructure and
operational needs like business intelligence and cloud architectures is
naturally driving the demand for related skills,” said TEKsystems market
research manager, Jason Hayman. “Successfully delivering return on
investment (ROI) on these initiatives makes hiring the right people very
important, especially for skills expected to have the greatest business
impact. Interestingly, the majority of IT leaders are optimistic about
their organizations’ abilities to respond to a potential baby boomer
exodus which makes the importance of strategic workforce planning even
TEKsystems' Jason Hayman, market research manager, is available for
additional commentary. Please contact Paul Roberts (TEKsystems@daviesmurphy.com)
to schedule an interview. For more information about the survey,
including the executive summary, please contact email@example.com.
People are at the heart of every successful business initiative. At
TEKsystems, we understand people. Every year we deploy over 80,000 IT
professionals at 6,000 client sites across North America, Europe and
Asia. Our deep insights into IT human capital management enable us to
help our clients achieve their business goals – while optimizing their
IT workforce strategies. We provide IT staffing solutions, IT talent
management expertise and IT services to help our clients plan, build and
run their critical business initiatives. Through our range of
quality-focused delivery models, we meet our clients where they are, and
take them where they want to go, the way they want to get there.
TEKsystems. Our people make IT possible. Visit us online at www.TEKsystems.com.