• Save
CIO Hiring Survey Executive Summary
Upcoming SlideShare
Loading in...5
×
 

CIO Hiring Survey Executive Summary

on

  • 928 views

 

Statistics

Views

Total Views
928
Views on SlideShare
913
Embed Views
15

Actions

Likes
0
Downloads
0
Comments
0

1 Embed 15

http://www.mmmtechlaw.com 15

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

CIO Hiring Survey Executive Summary CIO Hiring Survey Executive Summary Document Transcript

  •                       2011  CIO  HIRING  TRENDS  SURVEY   Executive  Summary                                 The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636    
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       TABLE  OF  CONTENTS   CONTACT ............................................................................................... 3 OVERVIEW ............................................................................................. 4 SURVEY RESULTS Trends .......................................................................................... 6 Factors ....................................................................................... 10 Organization/Business Outlook ........................................... 17 Financials .................................................................................. 18 CONCLUSION ...................................................................................... 20 METHODOLOGY ................................................................................ 21 ABOUT THE RESPONDENTS ........................................................... 22 ABOUT THE INTERSECT GROUP ................................................... 24 The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   2  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       CONTACT   MEDIA CONTACT: Kayla Payne OrgPR LLC kayla@orgprllc.com 404.989.0785 The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   3  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       OVERVIEW   Individuals working in information technology have been faced with many challenges over the past decade. IT jobs have been off-shored to low-cost labor countries, like India, causing a U.S. brain drain, perhaps the first in our country’s history. With the great off-shoring of IT jobs, the U.S. has seen a dramatic decline in the number of young people interested in IT as a profession. According to the Computing Research Association, the number of new computer science majors has been on the decline since 2000, falling from close to 16,000 to only 7,798 in fall 2006 and that trend is not expected to reverse any time soon. Meaning today there are fewer professionals working in the U.S. in IT than in 1990. No one knows the exact number of IT jobs that have been sent overseas; however a 2004 estimate marked the number of IT jobs that were previously performed in the U.S. but are now being performed by overseas contractors at between 300,000 and 400,000. Additionally, a Forrester Research report projected that 3.3 million IT jobs would be sent overseas from 2000-2015; that is approximately 220,000 IT jobs a year. IT professionals also suffered heavily in the recent recession. In 2008, as the economy faltered, companies, many of whom didn’t have the coffers to survive a deep and dark recession, laid off workers and halted major, capital intensive projects that were IT oriented. Today, however, corporations have filled their cash tills to the sum raising between $4 trillion and $2.5 trillion. They’re hanging on to cash as a basic survival mechanism to face the unknown. This behavior has prompted unprecedented moves by banks. Bank of New York Mellon, for example, recently started to charge a fee for deposits of $50,000 and above, signaling to the marketplace that they don’t want any more cash, a liability on their balance sheet. Since January, trends in the IT workforce have taken unlikely turns too. Companies that delayed projects in 2008, 2009 and 2010, are now dusting off their plans and pulling those IT projects off the shelf. So much so that we’re now in the unique position of having an IT skills shortage. The Intersect Group’s Rob MacLane recently said in a blog post that the top 5 IT skills in high demand today are Java Developers, dot Net Developers, Project Managers, Business Intelligence/Analytics Professionals and Quality Assurance Professionals. In light of our national economic situation and current job trends, The Intersect Group is leading the way in exploring what can be expected in The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   4  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       the near future. Starting in Atlanta, The Intersect Group is developing research to closely monitor where job growth is occurring and how the financial health of Atlanta companies correlates with the country as a whole. At The Intersect Group, we are beginning to see a new trend toward the re-shoring of IT jobs and will be expanding our upcoming research to capture data about the on-shoring and off-shoring of jobs. This inaugural survey of Atlanta CIOs explores whether the information technology functions of Atlanta companies are increasing the number of IT professionals they employ, the types of positions being created and the characteristics of employees filling those positions. In addition, the survey looks into the finances of respondent companies to understand health and growth prospects. For example, whether or not respondent companies saw an increase in revenues or profits compared to 2009, or whether the IT function will increase spending and staffing in comparison with 2010. The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   5  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       SURVEY  RESULTS   TRENDS   By the end of Q4 2008 it was obvious that the financial crisis had transformed into a jobs crisis, leaving many unemployed. Today, while the economy is improving, there are still many left without jobs. The national employment situation for August 2011 indicated a national unemployment rate of 9.1% while the August unemployment numbers for the state of Georgia stand at 10.2%, higher than the national average. Throughout the job crisis, companies cut back in all areas and one of the hardest hit was the information technology function. The loss of jobs in this function was two-fold, being affected by the economy and the off- shoring of IT jobs to countries such as India. The cut back in IT employees in the U.S. began more than a decade ago when IT jobs silently shifted to other countries by companies seeking to lower business costs. This loss of American IT jobs was only increased by the U.S.’ deep recession from which we are just beginning to recover. During the recession companies tabled IT projects, specifically development projects that could be postponed until the economy was steady again. Today, The Intersect Group is seeing strong growth in IT positions, a trend supported by this survey which indicated that 73.9 percent of respondents plan to increase staffing in their IT function in 2011, while none plan to reduce staff. This finding can be supported by numbers released by the Bureau of Labor Statistics indicating that the unemployment rate for IT jobs was only 3.3 percent; far below the national unemployment rate. The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   6  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       The results of the survey suggest that the majority of companies will hire between one and five employees and these employees will be staffed by senior level, permanent hire, contract hire and contract-to-permanent hire employees with the greatest emphasis on permanent hire employees. In addition, survey results indicate that Q3 2011 will be a stronger hiring quarter for IT jobs, as companies get back to the business of doing business following the summer months. However, given the market’s reaction in August to the debt ceiling debate and the on-going trouble in Europe, it will be interesting to see if Q3 is the strong hiring quarter that CIOs foresaw it to be in May and June when this survey was conducted. The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   7  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   8  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   9  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       FACTORS   As the U.S. economy starts to show some signs of improvement, IT functions are once again growing as previously tabled projects are coming off the shelf. Companies are seeing an increased need for staffing that is being driven by new systems deployments, speed to market and systems maintenance. Additionally, there is a growing need for IT professionals with the skills to organize data in a way that can empower executives to make educated strategic decisions regarding their goods or services. Historically, all companies in these situations would increase staff to meet growing needs, however today some are choosing to meet their needs by building internally and using current resources, stretching employees thin, rather than hiring or outsourcing. The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   10  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   11  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       Due to the nature of work within the IT function, telecommuting is a viable option for individuals working in this industry. Survey results indicate that 58 percent of new hires in the IT function will work remotely, with the most significant benefit of working remotely being cited as improved employee productivity and employee satisfaction. The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   12  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       The survey also looked at respondents’ geographic hiring decisions. The majority of survey respondents indicated that most of their 2011 hires in the IT function will reside in Georgia. Respondents, who indicated that the majority of their hiring in the IT function would not be within Georgia, indicated they their hires will be located in the Northeast and India. Of these respondents the majority responded that their 2011 hiring choices differ from their hiring choices four years ago. The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   13  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   14  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   15  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       When increasing staffing, companies look at a variety of factors, including the cost of providing health care to employees; as a result companies sometimes opt to staff with contract employees rather than hire permanent employees. The survey suggests that this is not the case within the IT function.           The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   16  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       ORGANIZATION/BUSINESS  OUTLOOK   As we slowly come out of the recession, companies will increase staffing, requiring talented and qualified candidates to fill new positions. In this situation, companies can turn to staffing companies to provide them with the best talent. However, the valuable resources that staffing companies provide are not being fully realized, as indicated by survey results. The survey results suggest that the majority of companies will not spend more money in 2011 on staffing companies to help them find IT resources; rather companies will either decrease their spending or remain constant.       The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   17  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       FINANCIALS   The 2011 Atlanta CIO Hiring Trends Survey also focused on how well respondent companies are doing financially as we transition out of the economic recession. The survey found that the majority of respondent companies have seen increased revenues and profits in 2010 as compared to 2009. Additionally, most companies will increase their information technology spending and sales budgets in 2011 as compared to 2010. The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   18  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary         The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   19  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       CONCLUSION   As we continue to see an uptick in our economy and as more companies regain confidence and begin hiring there will be an increase in the number of jobs available in all areas, but most specifically in information technology. An increased number of development and systems projects coming off the shelf is driving this increase and creating a positive overall picture of the future of the IT function. The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   20  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       METHODOLOGY   This marks the first year that The Intersect Group has commissioned an independent research firm to survey senior corporate counsel on hiring trends in information technology. The 2011 CIO Hiring Survey was distributed to 120 Atlanta-based CIOs with 23 respondents, a 19 percent response rate. The sample pool was created by a third-party database. The Intersect Group plans to commission this survey annually, allowing it to serve as a benchmark for hiring trends in information technology.                     The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   21  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       ABOUT  THE  RESPONDENTS   The survey was distributed among CIOs of some of Georgia’s leading companies. Most of those companies surveyed were privately held companies with fewer than 5,000 employees and headquartered in Georgia with a global focus. The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   22  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   23  
  •   2011  CIO  Hiring  Trends  Survey  |  Executive  Summary       ABOUT  THE  INTERSECT  GROUP   Founded in 2006, The Intersect Group is a different and better business partner, creating unparalleled value for clients by combining industry-leading consulting capabilities with comprehensive staffing and recruitment services. Clients trust The Intersect Group to deliver results based on deep expertise and proven resources within finance, accounting, and information technology. Through The Intersect Group’s flexible delivery approach, clients get the right solution, at the right time to accelerate success and achieve all mission-critical objectives. Since inception, The Intersect Group’s revenue has grown 800 percent, posting $3 million in revenue in its first year and a record $27 million in annual revenue at the end of 2010. The Intersect Group has been named as one of the top 500 fastest growing privately held companies in the United States, as determined by Inc. magazine. The Intersect Group’s growing workforce, now in excess of 420 employees, serves clients nationwide from offices in Atlanta, GA, Chicago, IL, and Dallas, TX. ### The  Intersect  Group  |  10  Glenlake  Parkway  Suite  300,  South  |  Atlanta,  GA  30328  |  770.500.3636   24