Click here to close now.




















Welcome!

SAP HANA Cloud Authors: Jayaram Krishnaswamy, Carmen Gonzalez, Elizabeth White, Liz McMillan, Pat Romanski

News Feed Item

IT 2013: Leaders Evenly Split on Spending Outlook; IT Applications and Infrastructure Services Top Spending Increases, Outsourcing Largest Decrease; Limited Concern with Boomer Exodus

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 (9 percent).
  • 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 decrease.
  • Operations a top concern. IT leaders ranked “operations” as having the largest increase in IT needs, followed by “marketing/sales” and “finance/accounting.”

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 part-time headcount.
  • 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 greater.”

TEKsystems' Jason Hayman, market research manager, is available for additional commentary. Please contact Paul Roberts ([email protected]) to schedule an interview. For more information about the survey, including the executive summary, please contact [email protected].

About TEKsystems®

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.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
A producer of the first smartphones and tablets, presenter Lee M. Williams will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. In his session at @ThingsExpo, Lee Williams, COO of ETwater, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater.
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...