IT departments, with the exception of those that serve the housing and credit sectors, have been so far immune to the effects of the economic slowdown. But new data suggests techies are feeling the squeeze. IT compensation remained flat in the first two quarters of 2008. Staff-level
IT professionals at large enterprises saw only a .12 percent increase in their median compensation between June 2007 and June 2008, according to the survey, while in midsize enterprises, salaries grew only slightly more, by .49 percent.
The summary findings in Janco MidYear 2008 IT Salary Survey are:
--Hiring demand is now the lowest it has been since 2004. Many enterprises have stopped hiring except for key replacements and those positions are being replaced at lower salary levels.
--In the last twelve (12) months the increases in compensation for most IT Professionals were lower than increases in the cost of living.
--Enterprises have slowed down and in many cases eliminated discretionary spending by IT. This has resulted in fewer projects being initiated, consultants use being reduced (if not eliminated), and a slow-down of initiatives that had already been approved.
--The mean increase in compensation for CIO's was less that 1.5%. The mean compensation for CIOs in large enterprises now is $179,823 and $171,755 for CIOs in mid-sized enterprises. (Large enterprises have over $500 million in revenue and mid-sized have are $100 to $499 million in revenue).
--The mean compensation (which includes bonuses) for all Executive IT positions surveyed now is $144,645 in large enterprises and $131,763 in mid-sized enterprises.
--Positions that were in high demand in the 4th quarter of 2007 such as CSOs and others to develop new Web 2.0 applications are now back to normal hiring patterns.
--Administrative positions in some IT functions are now being looked at as those that are expendableMore information on the IT industry can be found at www.SupportIndustry.com