Third-Quarter IT Reality Check – Budgets, Hiring, Trends

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Budgets

Anticipated budget increases never materialized.

  • Heading into 2014, 62 percent of IT leaders expected their IT budgets to increase. Through the first three-quarters of the year, the percentage of IT leaders who experienced increases never rose above 47 percent. At the end of March and June, only 47 percent had seen increases, while at the end of September, 46 percent reported their budgets had increased.
  • Heading into 2014, 26 percent of IT leaders expected their budgets to stay the same. Since the beginning of the year, this has steadily hovered at an average of 38 percent. Sequentially, the percentage of IT leaders who reported their budgets had actually remained the same was 38 percent (end of March), 37 percent (end of June) and 39 percent (end of September).
  • Heading into 2014, 12 percent of IT leaders expected their budgets to decrease. Through the first three-quarters of the year, the percentage of IT leaders who experienced decreases was higher than anticipated. Sequentially, the percentage of IT leaders who reported their budgets had actually decreased were 15 percent (end of March), 16 percent (end of June) and 15 percent (end of September).

Findings: Budgets have not met the originally anticipated increased levels. Sixteen percent of IT leaders who originally anticipated increases now report they expect their budgets to stay the same (up 13 percent) or decrease (up 3 percent).

Recently, TEKsystems, a leading provider of IT staffing solutions, released results from its quarterly "IT Realty Check," which compares current market conditions with the state of spending, skills needed and the impact areas originally reported in the company's "Annual IT Forecast" released in November 2013.

More than 62 percent of respondents in the 2014 forecast expected to see budget increases this year. In fact, only about 46 percent actually realized these increases, and 15 percent saw declines – three percent higher than expected. Additionally, IT leaders' confidence in their departments' ability to meet business demands has declined.  

Regarding employment, IT managers continue to have difficulty hiring qualified architects and developers, as well as project managers. And even though budgets have not increased as much as expected, IT hiring has continued on an upward swing, with managers expecting this trend to continue.

"The latest data shows some inconsistencies in what IT leaders are experiencing. They seem to have accepted that they will not see the budget increases they expected, and now as the year comes closer to an end, they are losing confidence in their ability to satisfy business demands," said TEKsystems Research Manager Jason Hayman. "On the bright side, IT leaders have a good grasp on the IT trends that most impact their organizations and they anticipate an increase in hiring. The third quarter closed with an uptick in hiring for both full-time and temporary workers, indicating firms are likely staffing up to make a last push at fulfilling important business initiatives."

 

Related Topics : A Big Market for Big Data Jobs, Midmarket CIO, IT Management Automation, SharePoint, Technology Markets

 
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