IT budgets up, but salary cuts still a concern: study

By , Network World |  IT Management


Internal domestic staff: 33%

Internal offshore staff: 6%

Outsourced domestic staff: 8%

Outsourced offshore staff: 3%

Consulting services: 9%

In-house hardware, network, software, facilities and asset depreciation: 24%

Outsourced hardware, network and software: 14%

* Outsourcing expenditures to climb in 2013. The percentage of budgets allocated to offshore outsourcing is expected to climb in 2013, according to respondents. It has generally hovered in the 4% range in recent years, falling to a low of 2% in 2011. In 2012, the percentage of IT budgets allocated to offshore outsourcing climbed to 5%, and respondents expect it to consume 7% of IT budgets in 2013. By geography, the largest percentage of offshore outsourcing work goes to India (43%), followed by western EU (13%), Philippines (12%) and eastern EU (6%).

* Training expenses are flat. Education and training have eaten up a consistently modest portion of the IT budget over the last five years, averaging 3.1%.

* Reporting structures vary. The corporate hierarchy varies for CIOs and senior IT executives. The largest percentage of CIOs (43%) report to the CEO. Another 27% report to the CFO, 19% to the COO, and 10% to a business unit executive.

* The CIO role is all about relationships. Nearly half of a CIO's time is spent managing relationships with business colleagues, IT staff and vendors.


Relationship management with business: 24%

Relationship management with IT staff: 13%

Strategy: 12%

Operations: 11%

IT governance: 10%

Human resources: 8%

Relationship management with vendors: 8%

Architecture: 7%

Software development: 6%

Non-IT: 1%

* Outside talent eyed for CIO jobs. More CIOs come from outside the company than are hired from within, SIM reported. Among survey respondents, 54% said their current CIO was hired from outside the company, plucked from an external IT organization. Another 5% said their current tech chief came from outside the company, but from a non-IT organization. The remainder said their current CIO previously worked within the company's IT group (37%) or within the company, but outside of IT (5%).

* IT success = on-time delivery. Timeliness remains the most significant metric for IT. When asked to rank the top IT metrics, respondents cited: projects delivered on time, project ROI, projects delivered on budget, SLA targets, and productivity improvement.

Originally published on Network World |  Click here to read the original story.
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