IT Work Returns; Raises, Not So Much

Susan Hall

Last month I wrote about Best Buy's plans to bring IT work back in-house. Jody Davis, the company's CIO, told RIS News:

We need to develop a strategy of what we're going to build. We like to take control of our destiny.

That's among the trends cited in Janco Associates' 2011 Mid-Year Salary Survey, one Ars Technica last week developed into a longer article:

Yes, many companies have shed services like e-mail, data center operations, and even desktop support to managed service providers, and have moved toward hiring IT contractors to handle application development and maintenance tasks - opting to focus on their "differentiators" to be more competitive. But over the past year, competition for IT skills has become increasingly fierce, and many companies are realizing that IT isn't just a support service - it's core to their business' future. And to take control of that future, HR professionals and recruiters say, more companies are looking to lock in IT professionals with the golden handcuffs of statutory employment.

And though research by Robert Half Technology predicted IT salaries will rise next year, they've been largely flat in 2011. Janco found salaries for all IT pros rose just 0.39 percent from $77,773 at the beginning of 2011 to $78,078 six months later, putting compensation levels back to that of January 2008.


Other findings:


  • 55,500 IT jobs were added during the period, according to the Bureau of Labor Statistics.
  • IT hiring has picked up at midsized companies for programmers, mid-level infrastructure managers and supervisors as well as staff workers.
  • At midsize companies, the total mean increase was 0.57 percent from $74,016 to $74,435, while raises at large enterprises grew from $81,531 to $81,722.
  • CIO salaries at those midsize companies fell by 0.59 percent to $162,250, while CIOs at large enterprises pulled down $175,363, up 2.05 percent.
  • There are fewer layoffs, but more reliance on contractors and temps focused on specific projects.

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