Merck Moving Beyond Passwords: FIDO Paris Seminar.pptx
CIO Hiring Survey Executive Summary
1.
2011
CIO
HIRING
TRENDS
SURVEY
Executive
Summary
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
2. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
TABLE
OF
CONTENTS
CONTACT ............................................................................................... 3
OVERVIEW ............................................................................................. 4
SURVEY RESULTS
Trends .......................................................................................... 6
Factors ....................................................................................... 10
Organization/Business Outlook ........................................... 17
Financials .................................................................................. 18
CONCLUSION ...................................................................................... 20
METHODOLOGY ................................................................................ 21
ABOUT THE RESPONDENTS ........................................................... 22
ABOUT THE INTERSECT GROUP ................................................... 24
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
2
3. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
CONTACT
MEDIA CONTACT: Kayla Payne
OrgPR LLC
kayla@orgprllc.com
404.989.0785
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
3
4. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
OVERVIEW
Individuals working in information technology have been faced with
many challenges over the past decade. IT jobs have been off-shored to
low-cost labor countries, like India, causing a U.S. brain drain, perhaps the
first in our country’s history. With the great off-shoring of IT jobs, the U.S.
has seen a dramatic decline in the number of young people interested in
IT as a profession. According to the Computing Research Association, the
number of new computer science majors has been on the decline since
2000, falling from close to 16,000 to only 7,798 in fall 2006 and that trend is
not expected to reverse any time soon. Meaning today there are fewer
professionals working in the U.S. in IT than in 1990. No one knows the
exact number of IT jobs that have been sent overseas; however a 2004
estimate marked the number of IT jobs that were previously performed in
the U.S. but are now being performed by overseas contractors at between
300,000 and 400,000. Additionally, a Forrester Research report projected
that 3.3 million IT jobs would be sent overseas from 2000-2015; that is
approximately 220,000 IT jobs a year.
IT professionals also suffered heavily in the recent recession. In 2008, as
the economy faltered, companies, many of whom didn’t have the coffers
to survive a deep and dark recession, laid off workers and halted major,
capital intensive projects that were IT oriented.
Today, however, corporations have filled their cash tills to the sum raising
between $4 trillion and $2.5 trillion. They’re hanging on to cash as a basic
survival mechanism to face the unknown. This behavior has prompted
unprecedented moves by banks. Bank of New York Mellon, for example,
recently started to charge a fee for deposits of $50,000 and above, signaling
to the marketplace that they don’t want any more cash, a liability on their
balance sheet. Since January, trends in the IT workforce have taken
unlikely turns too. Companies that delayed projects in 2008, 2009 and
2010, are now dusting off their plans and pulling those IT projects off the
shelf. So much so that we’re now in the unique position of having an IT
skills shortage. The Intersect Group’s Rob MacLane recently said in a blog
post that the top 5 IT skills in high demand today are Java Developers, dot
Net Developers, Project Managers, Business Intelligence/Analytics
Professionals and Quality Assurance Professionals.
In light of our national economic situation and current job trends, The
Intersect Group is leading the way in exploring what can be expected in
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
4
5. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
the near future. Starting in Atlanta, The Intersect Group is developing
research to closely monitor where job growth is occurring and how the
financial health of Atlanta companies correlates with the country as a
whole. At The Intersect Group, we are beginning to see a new trend
toward the re-shoring of IT jobs and will be expanding our upcoming
research to capture data about the on-shoring and off-shoring of jobs.
This inaugural survey of Atlanta CIOs explores whether the information
technology functions of Atlanta companies are increasing the number of
IT professionals they employ, the types of positions being created and the
characteristics of employees filling those positions. In addition, the survey
looks into the finances of respondent companies to understand health and
growth prospects. For example, whether or not respondent companies
saw an increase in revenues or profits compared to 2009, or whether the IT
function will increase spending and staffing in comparison with 2010.
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
5
6. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
SURVEY
RESULTS
TRENDS
By the end of Q4 2008 it was obvious that the financial crisis had
transformed into a jobs crisis, leaving many unemployed. Today, while
the economy is improving, there are still many left without jobs. The
national employment situation for August 2011 indicated a national
unemployment rate of 9.1% while the August unemployment numbers for
the state of Georgia stand at 10.2%, higher than the national average.
Throughout the job crisis, companies cut back in all areas and one of the
hardest hit was the information technology function. The loss of jobs in
this function was two-fold, being affected by the economy and the off-
shoring of IT jobs to countries such as India. The cut back in IT employees
in the U.S. began more than a decade ago when IT jobs silently shifted to
other countries by companies seeking to lower business costs.
This loss of American IT jobs was only increased by the U.S.’ deep
recession from which we are just beginning to recover. During the
recession companies tabled IT projects, specifically development projects
that could be postponed until the economy was steady again. Today, The
Intersect Group is seeing strong growth in IT positions, a trend supported
by this survey which indicated that 73.9 percent of respondents plan to
increase staffing in their IT function in 2011, while none plan to reduce
staff. This finding can be supported by numbers released by the Bureau of
Labor Statistics indicating that the unemployment rate for IT jobs was
only 3.3 percent; far below the national unemployment rate.
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
6
7. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
The results of the survey suggest that the majority of companies will hire
between one and five employees and these employees will be staffed by
senior level, permanent hire, contract hire and contract-to-permanent hire
employees with the greatest emphasis on permanent hire employees. In
addition, survey results indicate that Q3 2011 will be a stronger hiring
quarter for IT jobs, as companies get back to the business of doing
business following the summer months. However, given the market’s
reaction in August to the debt ceiling debate and the on-going trouble in
Europe, it will be interesting to see if Q3 is the strong hiring quarter that
CIOs foresaw it to be in May and June when this survey was conducted.
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
7
8. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
8
9. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
9
10. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
FACTORS
As the U.S. economy starts to show some signs of improvement, IT
functions are once again growing as previously tabled projects are coming
off the shelf. Companies are seeing an increased need for staffing that is
being driven by new systems deployments, speed to market and systems
maintenance. Additionally, there is a growing need for IT professionals
with the skills to organize data in a way that can empower executives to
make educated strategic decisions regarding their goods or services.
Historically, all companies in these situations would increase staff to meet
growing needs, however today some are choosing to meet their needs by
building internally and using current resources, stretching employees
thin, rather than hiring or outsourcing.
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
10
11. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
11
12. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
Due to the nature of work within the IT function, telecommuting is a
viable option for individuals working in this industry. Survey results
indicate that 58 percent of new hires in the IT function will work remotely,
with the most significant benefit of working remotely being cited as
improved employee productivity and employee satisfaction.
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
12
13. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
The survey also looked at respondents’ geographic hiring decisions. The
majority of survey respondents indicated that most of their 2011 hires in
the IT function will reside in Georgia. Respondents, who indicated that
the majority of their hiring in the IT function would not be within Georgia,
indicated they their hires will be located in the Northeast and India. Of
these respondents the majority responded that their 2011 hiring choices
differ from their hiring choices four years ago.
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
13
14. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
14
15. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
15
16. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
When increasing staffing, companies look at a variety of factors, including
the cost of providing health care to employees; as a result companies
sometimes opt to staff with contract employees rather than hire
permanent employees. The survey suggests that this is not the case within
the IT function.
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
16
17. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
ORGANIZATION/BUSINESS
OUTLOOK
As we slowly come out of the recession, companies will increase staffing,
requiring talented and qualified candidates to fill new positions. In this
situation, companies can turn to staffing companies to provide them with
the best talent. However, the valuable resources that staffing companies
provide are not being fully realized, as indicated by survey results. The
survey results suggest that the majority of companies will not spend more
money in 2011 on staffing companies to help them find IT resources;
rather companies will either decrease their spending or remain constant.
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
17
18. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
FINANCIALS
The 2011 Atlanta CIO Hiring Trends Survey also focused on how well
respondent companies are doing financially as we transition out of the
economic recession. The survey found that the majority of respondent
companies have seen increased revenues and profits in 2010 as compared
to 2009. Additionally, most companies will increase their information
technology spending and sales budgets in 2011 as compared to 2010.
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
18
19. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
19
20. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
CONCLUSION
As we continue to see an uptick in our economy and as more companies
regain confidence and begin hiring there will be an increase in the number
of jobs available in all areas, but most specifically in information
technology. An increased number of development and systems projects
coming off the shelf is driving this increase and creating a positive overall
picture of the future of the IT function.
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
20
21. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
METHODOLOGY
This marks the first year that The Intersect Group has commissioned an
independent research firm to survey senior corporate counsel on hiring
trends in information technology.
The 2011 CIO Hiring Survey was distributed to 120 Atlanta-based CIOs
with 23 respondents, a 19 percent response rate. The sample pool was
created by a third-party database.
The Intersect Group plans to commission this survey annually, allowing it
to serve as a benchmark for hiring trends in information technology.
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
21
22. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
ABOUT
THE
RESPONDENTS
The survey was distributed among CIOs of some of Georgia’s leading
companies. Most of those companies surveyed were privately held
companies with fewer than 5,000 employees and headquartered in
Georgia with a global focus.
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
22
23. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
23
24. 2011
CIO
Hiring
Trends
Survey
|
Executive
Summary
ABOUT
THE
INTERSECT
GROUP
Founded in 2006, The Intersect Group is a different and better business partner,
creating unparalleled value for clients by combining industry-leading consulting
capabilities with comprehensive staffing and recruitment services. Clients trust
The Intersect Group to deliver results based on deep expertise and proven
resources within finance, accounting, and information technology. Through The
Intersect Group’s flexible delivery approach, clients get the right solution, at the
right time to accelerate success and achieve all mission-critical objectives.
Since inception, The Intersect Group’s revenue has grown 800 percent, posting $3
million in revenue in its first year and a record $27 million in annual revenue at
the end of 2010. The Intersect Group has been named as one of the top 500 fastest
growing privately held companies in the United States, as determined by Inc.
magazine. The Intersect Group’s growing workforce, now in excess of 420
employees, serves clients nationwide from offices in Atlanta, GA, Chicago, IL,
and Dallas, TX.
###
The
Intersect
Group
|
10
Glenlake
Parkway
Suite
300,
South
|
Atlanta,
GA
30328
|
770.500.3636
24