Wednesday, October 5, 2011

2012 IT budgets, salaries on the rise, survey says

SIM's annual CIO survey indicates pre-recession levels of optimism
"IT budgets, salaries and staff turnover rates have returned to pre-recessionary levels, according to a new survey conducted by the Society of Information Management (SIM) that indicates increasing optimism among CIOs and IT executives nationwide...

"The outlook for IT budgets is solid, with 83% of survey respondents reporting that their 2011 IT budget was greater than or equal to their 2010 IT budget. This figure compares to 48% reporting stable or growing IT budgets in 2009.

"Similarly, 85% of IT executives are predicting that their 2012 IT budgets will be greater than or equal to their 2011 figures. Only 65% of respondents made this prediction two years ago...

"The SIM survey indicated no plans by management to increase offshore outsourcing, which has been a fear among IT professionals over the years. CIOs reported that they spent only 2% of their 2011 IT budgets on offshore outsourcing and 3% on domestic outsourcing. For 2012, they are projecting the same level of investment for offshore and domestic outsourcing.

"Another indicator that IT departments were returning to pre-recessionary levels of activity is that 2011 IT budgets represented 3.55% of corporate revenues, which compares to 3.5% prior to the recession.

"Similarly, IT staff turnover rates returned to 7.06% in 2011, which compares to pre-recessionary level of 7.2%. The turnover rate peaked at 8.4% in 2008, when layoffs were common.

"It's pretty neat that the staff turnover rate is so low," Luftman said. "It's low for a couple reasons. Baby boomers are not retiring because they can't afford it, and people aren't finding other jobs with higher salaries. But the entry-level job market is terrific."

"As far as salaries are concerned, 92% of CIOs say that their 2011 IT staff salaries were greater than or equal to 2010 levels. This compares to 81% reporting stable or increasing salaries in 2009 and 83% in 2010.

"For next year, 94% of CIOs predict that their 2012 IT staff salaries will be greater than or equal to this year's level. In 2007, only 78% of CIOs made this prediction...

Network World

No comments:

Post a Comment