Forrester: Hire Now to Lessen Costs of Competition

Susan Hall
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CIOs should be hiring now, advises Forrester analyst Andrew Bartels in a new report on rising tech spending in the United States. It projects tech spending will grow by 7.1 percent in 2012 and by 7.4 percent in 2013.


Forrester expects IT staffing ($241 million) and software acquisition ($232 million) to be the two biggest areas of spending. But Bartels says that competition for talent will continue to be a problem and will drive staffing costs up, reports The Wall Street Journal. Hiring sooner rather than later can help keep staffing costs in line. Staffing costs are expected to rise by 4.9 percent this year, but by 7.2 percent in 2013. The number of new hires is expected to grow by 2 percent in 2012 and by 4 percent next year.


A previous Forester report, in conjunction with the National Science Foundation found employment growing in IT services and software development, but shrinking at telecoms and in manufacturing, according to Computerworld. Indeed, the Labor Department's numbers for March showed growth in business services, with computer systems design and related services among the sectors showing the most growth.


Forrester also notes a decline in outsourcing, a trend that made headlines in a recent report by Hackett Group, which made headlines earlier by predicting that in eight to 10 years, further offshoring will cease because there will be no more work left suitable for such an arrangement.

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