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

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IT leaders express slight decline in confidence to meet business demands.

  • Heading into 2014, 66 percent of IT leaders were confident in their IT department's ability to satisfy business demands. Through the first three-quarters of the year, the percentage of IT leaders who expressed confidence was higher than forecast, but has recently come closer to original levels. At the end of March, 72 percent expressed confidence, while 73 percent expressed the same at the end of June, but this fell to 69 percent by the end of September.
  • Heading into 2014, 28 percent of IT leaders expressed a neutral view toward their IT department's ability to satisfy business demands. At the end of March, 15 percent were neutral, 14 percent at the end of June, and 11 percent at the end of September.
  • Heading into 2014, 6 percent of IT leaders lacked confidence in their IT department's ability to satisfy business demands. At the end of March and June, 13 percent lacked confidence, but by the end of September the number had risen to 20 percent.

Findings: The persistence of lower budgets seems to have finally impacted IT leaders' confidence in their ability to satisfy business demands. Over the course of the year, there has been a decline in those who expressed confidence (-3 percent) and those who were neutral (-4 percent), and an increase in those who were not confident (+7 percent). In addition to never receiving increased budgets in order to complete workloads, reasons for this decline in confidence could be attributed to the realization that time is running out to complete planned projects or that additional IT projects have been scheduled for the remainder of the year.  

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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