TEKsystems’ IT Workforce Snapshot is designed to provide a high-level view of trends impacting IT spending, IT employment, workforce supply and demand, compensation and geographical demand within the industry. This report can help organizations and IT decision makers create benchmarks for comparing their IT goals with industry peers and provide a reality check for potential challenges related to securing the right IT professionals.
IT Workforce
snapshot
Table of Contents
It spending projections ...1
Impacts to It...3
It hiring Expectations...5
supply and Demand for It professionals...6
hot It skills ...8
IT Workforce
snapshot
Recent research indicates 48 percent of It leaders expect their budgets to increase in 20131, which is down slightly from 53 percent in 2012.1 twenty-seven percent of It leaders expect their budgets to stay the same and 16 percent expect their budgets to decrease1, compared to 17 percent in 2012.1
16% 19% 13% 26% 6% 5% 5% 9%
Change in IT Budget 2013 vs 2012
Increase by more than 10% Increase by 5-10%
Increase by up to 5% Stay the same
Decrease by up to 5% Decrease by 5-10%
Decrease by more than 10% Don't know
IT SpendIng projecTIonS
change in IT Budget 2013 vs. 2012
the 2013 projected spending on It in the U.s. is expected to be $958 billion.2 total It spending is broken down into computing hardware ($110.5B), software ($71.5B), It services ($220.7B) and telecom ($555.4B).2
approximately half of It leaders anticipate spending on It applications (49 percent) and It infrastructure (47 percent) services to increase in 2013. It leaders
expect healthy increases in It applications and It infrastructure spending with 30 percent and 28 percent, respectively, anticipating a rise of 5 percent or more.1
the majority of It decision-makers expect spending to stay the same in It outsourcing (39 percent) and It education and training (44 percent) in 2013.1
the trends affecting It leaders in 2013 are similar to those from the past couple of years. however, organizations feel more comfortable making investments in new technologies because they better understand the challenges, the solutions and the type of return on investment (RoI) they can deliver to the business. It’s a sign organizations realize It is a business generator, not just a cost center,” says tEKsystems Market Research Manager, Jason hayman. “While leaders expect spending, especially in applications and infrastructure, to increase, the size of their budgets are likely to shrink. It leaders need to manage the demands placed on them by prioritizing initiatives that will deliver the greatest business RoI.”
IT SpendIng projecTIonS, cont’d.
6% 9% 10% 12% 7% 9% 18% 18% 15% 14% 19% 19% 44% 39% 29% 30% 8% 10% 8% 6% 4% 5% 4% 3% 5% 5% 4% 3% 9% 10% 8% 9%
IT education/training services spending IT outsourcing services spending IT infrastructure services spending IT applications services spending
2013 IT Spend Projections
Increase by more than 10% Increase by 5-10% Increase by up to 5% Stay the same
Decrease by up to 5% Decrease by 5-10% Decrease by more than 10% Don't know
Biggest Increase in IT needs in 2013 operations
Marketing/sales Finance/accounting Research and Development
Risk Management/Legal and Compliance human Resources
purchasing
Biggest Impact on organization in 2013 Business Intelligence Cloud Computing security shortage of It Workers Mobility Big Data
Enterprise Resource planning Data Center Consolidation Virtualization
Consumerization of It/ BYoD (Bring Your own Device) social networking other
IT leaders expect operations, marketing/sales and finance/accounting to have the biggest increase in IT needs in 2013. the trends with the biggest impact on the organization include business intelligence (BI), cloud computing and security.
Every function of an organization benefits from investing in IT, but a few have the greatest need for IT. Operations, marketing/sales and finance/ accounting are the functions that can best benefit from investments in new technologies. If done effectively, organizations can leverage BI to open doors to new markets, better understand existing customer bases and improve effectiveness of marketing and sales campaigns,” comments hayman.
“Further, businesses today better understand how the cloud helps companies improve efficiencies and save money. While leveraging trends like BI and the cloud provide great benefits for the business, security is a major concern. Cyberspace is a battleground that poses serious threats to the personal information and corporate data businesses manage and collect on a daily basis. the technologies companies invest in are important, but ensuring security It teams stay current on changing tactics and technologies, like investing in employee training, is essential to long-term protection.”
40% 42% 45% 43% 15% 15% Temporary IT headcount Permanent IT headcount
Expected IT Hiring Change in 2013
Increase Stay the Same Decrease expected IT Hiring change in 2013
hiring expectations in 2013 for permanent and temporary It workers are positive. Forty-two percent of It leaders expect permanent It headcount to increase, while 40 percent expect temporary It headcount to increase. slightly more, 45 percent, expect temporary It headcount to stay the same, versus the 43 percent that expect permanent It headcount to stay the same. Fifteen percent of It leaders believe It hiring will decrease for both permanent and temporary It workers.
IT HIrIng expecTaTIonS
tthe majority of It leaders expect It headcount to increase or stay the same this year, which really speaks to the strength of the industry and the demand organizations have for great It workers. as It becomes more essential to business success, organizations need to leverage both permanent and temporary hiring models to get the best talent depending on the state of their It initiatives.“ states hayman.
Supply and demand
for IT profeSSIonalS
Demand for It professionals remains high. the It unemployment rate has hovered below 4 percent, averaging 3.5 percent in the first quarter of 2013. In 2012, U.s. It unemployment averaged 3.6 percent, down from 4.1 percent in 2011. Meanwhile, U.s. It employment reached approximately 4.3 million, accounting for about 2.6 percent of the entire U.s. workforce. the It industry added approximately 81,000 new jobs in 2012 and It employment was up 4.7 percent, a growth rate more than two and a half times the national rate of job growth of 1.5 percent.3
tEKsystems’ research corroborates this steady demand. It professionals report receiving, on average, 23 job solicitations per week from professional recruiters.4 additionally, the number of job requisitions for IT professionals increased 14 percent from 2011 to 2012. During this time, demand for It professionals increased the most in healthcare (53 percent), energy and utilities (28 percent), and transportation (24 percent).
Supply and demand for IT proS, cont’d.
the It resource pool is not keeping pace with the demands almost all industries have for great It talent. organizations show no signs of slowing down on their It investments, making workforce planning critical to future success. If businesses can not hire the right It professionals, they risk settling for the B-team,” says hayman. “there is a lot that can be done to help close the supply and demand gap. For It professionals, continual investment in your education and getting certified in the hottest technologies can help you keep pace with the new advancements and open up career opportunities for years to come. organizations can partner with colleges and universities to promote IT as a great career field to invest in and help develop and ensure curriculums focus on teaching students about current industry challenges and the skill sets needed to solve them.”
3% 5% 5% 7% 9% 11% 15% 16% 24% 28% 53% Wholesale Trade Educational Services Telecomunications Manufacturing Government Information Technology Retail Trade Financial Services Transportation Energy and Utilities Healthcare
Percentage Change in IT Job Requisitions 2011-2012 (Demand)
Percentage Increase in Demand
HoT IT SkIllS
With major initiatives like BI, cloud computing and security at the top of most CIos’ project lists, experienced It professionals with related skills are in high demand. It leaders identify developers, architects and workers with analytics skills to be the most difficult to fill skill sets.
Most Difficult to Fill Skill Sets
Developers architects
analytics (BI, Big Data, etc.) Engineers
Cloud security
project Managers Business analyst
HoT IT SkIllS, cont’d.
In-demand skills are related to the fact that organizations undertake many
of the same It projects at the same time,” comments hayman. “to secure the necessary talent, proactive, strategic talent management programs are essential. organizations with the strongest programs will have a leg up in attracting and retaining the necessary talent. only relying on the local labor market can stifle a company’s hiring effectiveness. Reaching into regional and national pools is a tactic for organizations to consider if it is difficult to find the right It talent locally.”
compenSaTIon
In 2012, It professionals experienced an average 3.6 percent increase in compensation—nearly double the average 1.5 percent increase all private and public sector workers received in 2012.5 Further, It professionals expect to see salaries increase by 3.1 percent or more in 2013.1
4% 8% 43% 34% 2%
1% 1%
6%
Expected Change in IT Salary in 2013
Increase by more than 10% Increase by 5-10% Increase by up to 5% Stay the same Decrease by up to 5% Decrease by 5-10% Decrease by more than 10% Don't know
compenSaTIon, cont’d.
2% 3% 4% 2% 4% 3% 4% 2% 4% 3% 3% 4% 6% 5% 7% 5% 7% 7% 8% 6% 9% 7% 9% 10% 19% 23% 23% 27% 24% 27% 26% 30% 27% 31% 29% 33% 47% 45% 45% 47% 43% 43% 43% 44% 43% 41% 41% 37% 3% 4% 2% 5% 2% 2% 3% 2% 2% 3% 3% 3% 1% 1% 1% 1% 1% 1% 0% 1% 0% 1% 1% 1% 2% 2% 2% 2% 2% 2% 2% 2% 1% 2% 1% 1% 19% 17% 16% 11% 18% 15% 14% 13% 13% 12% 12% 11% Social Media .NET Mobile Help/Desktop Support Cloud Analytics (BI, Big Data, etc.) Architects Business Analysts Security Project Managers Engineers DevelopersExpected Salary Change by Skill Set in 2013
Increase by more than 10% Increase by 5-10% Increase by up to 5% Stay the same Decrease by up to 5% Decrease by 5-10% Decrease by more than 10% Don't know
Expected Salary Change by Skill Set in 2013
It decision-makers anticipate salary increases for most It skill sets, but the most in-demand skills, like developers and engineers, are likely to receive the greatest increases.
While monetary compensation is always important to It professionals,
organizations should also evaluate other components to the overall employee value proposition in order to attract the right people,” says Hayman. “To find and keep the best talent, companies need to create a full package of benefits that sets your organization apart from the competition. the It professionals we pulse on a quarterly basis say opportunities to develop and enhance their skills, as well as career advancement opportunities, are just as important as salary. these attributes need to be detailed and incorporated into the strategies used to attract It candidates.”
geograpHIcal demand
for IT profeSSIonalS
over the past year, each region in the U.s. experienced at least a 12 percent increase in demand for It professionals. according to tEKsystems, the largest increase in demand from 2011 to 2012 was in the West region, where job requisitions rose 24 percent. The Northeast region (19 percent), Central region (12 percent), southeast region (10 percent) and Midwest regions (10 percent) saw lower, but positive, increases in demand.
no matter where a company is based, It professionals are critical to
successful implementations and effective programs. While some regions see higher demand for IT professionals than others, the war for qualified IT talent is extremely high and prevalent in all industries and regions of the U.s. to avoid pitfalls during It projects, organizations should evaluate existing in-house skills, identify gaps and ultimately determine the most effective strategy to attract, develop and retain the best people,” concludes hayman.
About TEKsystems
®people are at the heart of every successful business initiative. at tEKsystems, we understand people. Every year we deploy over 80,000 It professionals at 6,000 client sites across north america, Europe and asia. our deep insights into It human capital management enable us to help our clients achieve their business goals—while optimizing their It workforce strategies. We provide IT staffing solutions, IT talent management expertise and It services to help our clients plan, build and run their critical business initiatives. Through our range of quality-focused delivery models, we meet our clients where they are, and take them where they want to go, the way they want to get there. tEKsystems. our people make It possible.
Visit us online at www.TEKsystems.com.
Footnotes
1 tEKsystems annual It Forecast, January 2013
2 Gartner IT Spending & Staffing Report 2013, January 2013 3 techserve alliance, January 2013
4 tEKsystems It professional perspectives survey,
December 2011
5 Bureau of Labor statistics national Compensation survey
