IT Hiring Is on the Uptick According to 2011 IT Salary Survey

The 2011 Salary Survey, just released by Janco Associates and eJobDescription.com, is good news for IT job seekers. The survey shows that hiring is picking up in some sectors of the IT job market, salaries have stopped falling, and for selected positions there has been an increase in compensation - especially for CIOs. Even though many fear a second dip in the economy, CIOs in larger enterprises have been give the ‘yellow light’ to look ahead and fill positions that were left unfilled last year. The same is not the case for mid-sized companies. They are much more cautious and concerned that the recovery will not be strong enough to support increased IT spending.

The most striking observations of the survey are:

-- Some recovery has occurred in compensation and hiring of IT Professionals. The total mean compensation for all IT Professionals has increased modestly by 0.35% to $77,873 from $77,604. This puts overall compensation back at the levels they were at in January 2008.

-- Middle manager and non-line IT executives continue to feel a salary crunch.

-- Mid-sized enterprises are now starting to hire staff workers with salaries in this sector increasing the most – Mean compensation is up by 1.44% from $61,047 to $61,924.

-- Layoffs seem to have tapered off.

-- On shore outsourcing has peaked and companies are looking to bring IT operations back into their direct control and reduce operating costs.

-- Cost reduction is still the rule of the day; however we have seen an increase in the number of “part-timers” and contractors who are focused on particular critical projects.

-- Companies are continuing to reduce the benefits provided to IT professionals. Though benefits such as health care are available, IT professionals are now paying a greater portion of that cost.

-- Flexible hours and work schedules are becoming more available as the recovery begins to take hold and is viewed as a low cost high value benefit by both employers and employees.

-- CIOs compensation has increased over the last 12 months. The mean compensation for CIOs in large enterprises is now $184,681 (an increase of 1.73%) and $163,106 (an increase of 0.49%) in mid-sized enterprises.

-- CIO demand is almost non-existent as companies who were not pleased with their existing CIO have already replace them and incumbents in those positions are reluctant to move with the current economic conditions. 

More information on the IT industry can be found at www.SupportIndustry.com.

HDI Announces Release of 2010 HDI Practices & Salary Report

HDI, a global association for IT service and technical support professionals, announced the release of the 2010 HDI Practices and Salary Report, a comprehensive study that presents an overall look at the state of the IT support industry and allows managers to see how support centers are handling the demands of doing more with less in the 2010 economy.

Report highlights include:

-- As support centers are continually asked to do more with less, the number of incidents continues to increase for most (67%) organizations.

-- Twenty percent of support centers are utilizing chat as a support channel and 5 percent are now receiving tickets through social media.

-- E-mail management tool use went up 5 percent, and configuration management tools are being used by 8 percent more support centers than in 2009.

-- The primary tool implementation initiative is incident management software (14%), followed by knowledge management software (10%), and self-help tools (9%).

-- Results indicate that over 80 percent of support centers are maintaining at least single service level agreements, with a rise in the percent of those maintaining multiple service level agreements.

-- Hardware support and repair is still the most outsourced support function, though down slightly from 2009. The top reasons support centers are not outsourcing more are due to concerns about control of service, service quality, and customer acceptance, then cost.

-- Telephone performance, as measured by average speed to answer, abandonment rate, and first call resolution, has seen improvement across the industry.

-- Ninety-one percent of survey respondents believe an effective support organization must have a customer satisfaction tool; however, 16 percent of support centers do not measure customer satisfaction.

-- On-the-job training (88%) is the most utilized method for training new hires to the frontline. This is followed by mentoring/coaching (78%) and call monitoring (57%), which are, in turn, followed by the more structured types of training, such as computer-based training, formal classroom training, online training, webinars, and virtual classroom training, formats that might require more resources. The primary training concern for new hires to the frontline is customer service skills.

-- Training is considered by most respondents to be the most influential factor with regard to customer satisfaction (90%), performance metrics (85%), and successful product implementation (81%).

-- Twenty-five percent of support centers are paying certified employees more than those who are not certified, a 3 percent increase from 2009.

-- The percent of support centers expecting layoffs, hiring freezes, and salary freezes is down. Over 34 percent are actually anticipating an increase in hiring in their support organizations.

More information on the service and support industry can be found at www.SupportIndustry.com. 

IT Spending Improving Bit by Bit

For IT organizations, the year ahead will not only be a time for rebuilding but also for innovation. Spending will remain restrained, and IT executives will continue to be asked to deliver more with less. But they are also receiving the go-ahead to take risks with projects that promise long-term improvements in the ability of IT to support new business initiatives.

A new study by Computer Economics, Outlook for IT Spending and Staffing in 2011, forecasts that IT operational spending will increase by 2% at the median, based on a fourth-quarter survey of 136 IT organizations in the U.S. and Canada.

The anticipated growth is welcome news after two years of no change at the median, accompanied by substantial budget cuts by organizations at the 25th percentile. But the forecast is modest in comparison to the three years leading up to the recession.

Although 2% growth at the median is modest, the forecast for growth appears firm, based on actions taken by IT executives in the fourth quarter. IT organizations have been extending staff hours, adding temporary workers, and launching major projects that promise strong ROI or improved agility, our survey finds.

One net trend that is seen is IT organizations are having IT staff work more hours. In fact, only 1.5% of organizations cut hours, while 48.5% increased hours, for a net change of 47%.

Almost as aggressive is work on major projects, where the net trend is 46%. In fact, 56% of all organizations increased work on major projects over the past three months compared to only 10% that decreased expenditures in this area.

The good news continues: not only are IT organizations giving staff members more hours, they are hiring contractors and temporary workers and turning to outsourcing. The net trends for these two actions are 31% and 24%, respectively. These actions are a prelude to making a commitment to take on permanent, full-time workers.

However, the net trend for increasing the size of the IT staff is only 13%. The message seems to be that while companies are increasing IT operational spending, the commitment is still soft, and IT executives are willing to pay a bit of a premium to maintain a flexible workforce. 

More information on IT spending can be found at www.SupportIndustry.com.

More CIOs Plan to Hire During First Quarter

Hiring in the information technology field will increase in the first quarter, according to the just-released the Robert Half Technology IT Hiring Index and Skills Report. In the latest survey, 11 percent of chief information officers (CIOs) said they plan to add information technology (IT) staff in the first three months of the year, and just 3 percent foresee cutbacks. The net 8 percent increase in hiring activity is up 5 points from the fourth-quarter forecast.

The survey also found that 84 percent of CIOs are at least somewhat confident in their companies' growth prospects in the first quarter, the same number reported in the fourth-quarter survey. In addition, more than half (54 percent) of executives said it is very or somewhat challenging to find skilled IT professionals today.

The IT Hiring Index and Skills Report is based on telephone interviews with more than 1,400 CIOs from companies across the United States with 100 or more employees. It was conducted by an independent research firm and developed by Robert Half Technology, a leading provider of IT professionals on a project and full-time basis.

Key Findings

-- The net 8 percent increase in projected IT hiring activity for the first quarter is the highest in one year and up 5 points from the prior quarter's forecast.

-- Technology executives in the East North Central and West South Central regions will be hiring the most actively.

-- Eighty-four percent of CIOs are at least somewhat confident in their companies' growth prospects in the first quarter; 35 percent are very confident.

-- More than half (54 percent) of CIOs expect to encounter recruiting challenges in the quarter ahead.

-- Network administration is the most highly sought area of expertise for job candidates, as it has been for the last four quarters of the survey.

More information on IT can be found at www.SupportIndustry.com.

Nearly One-Third of Workers Holiday Shop Online at Work; Half of Employers Monitor Internet and E-mail Use of Employees

According to a new survey by CareerBuilder, twenty-nine percent of workers say they have holiday shopped online at work, on par with previous years. Of those planning to shop online this year, 27 percent will spend one hour or more. More than one-in-ten (13 percent) said they will spend two hours or more. Workers should be mindful of their companies’ electronic communications policies, though, as nearly half (47 percent) of companies said that they monitor Internet and e-mail use of employees. This year’s survey included more than 2,400 employers and more than 3,100 workers.

More than one-in-10 workers (13 percent) said they spend one hour or more using the Internet each day for non-work related activities or research while at work. Workers are advised to limit their Internet searches to those related to work or to use their lunch hour or break time for these activities:

-- 21 percent of employers have fired someone for using the Internet for non-work related activities.

-- 5 percent of employers have fired someone for holiday shopping online at work.

-- Half of employers (50 percent) block employees from accessing certain web sites while at work.

Workers are also cautioned about email content as nearly six-in-10 (59 percent) said they typically send non-work related emails each day. Sixteen percent report they send six or more personal e-mails during a typical workday.

-- 27 percent of employers monitor emails.

-- 9 percent of employers have fired someone for non-work related emails.

More information on service and support can be found at www.SupportIndustry.com.

Executive Guidance 2011 Reveals Four Management Principles Crucial to Achieving Intelligent Growth

The Corporate Executive Board, a research and advisory services company, announced the publication of Executive Guidance 2011, the company's year-end analysis of industry trends and corporate best practices designed to inform and support business planning. This year's Executive Guidance focuses on "Intelligent Growth"--a long-term pattern of above-industry performance in both revenue growth and efficiency--and highlights four key management principles that are critical to achieving it. While most companies aspire to create this balance, currently less than 10 percent of global organizations are considered Intelligent Growth companies.

Corporate Executive Board has identified four key management principles necessary to achieve Intelligent Growth:

-- Customer Experience Innovation--Intelligent Growth companies de-emphasize the standard sales process and relentlessly seek to innovate their product and service lines.

-- Key Talent Engagement--Intelligent Growth leaders are actively re-invigorating their lost generation of talent and by doing so they are realizing higher productivity and greater ROI.

-- Risk Vigilance--Most Intelligent Growth companies avoided a major crisis. They likely encountered risks but because of their culture, they were able to surface them early or responded more effectively than their peers.

-- Permanent Cost and Capital Management--Intelligent Growth companies continuously manage operating cost structures throughout economic cycles, avoiding the pain that comes with "boom and bust" management approaches and taking what might be considered big risks along the way.

More information can be found at www.SupportIndustry.com.

Gartner Reveals Top Predictions for IT Organizations and Users for 2011 and Beyond

Gartner, Inc. has revealed its top predictions for IT organizations and users for 2011 and beyond. Analysts said that the predictions highlight the significant changes in the roles played by technology and IT organizations in business, the global economy and the lives of individual users.

Last year's theme of rebalancing supply, consumer demand and regulation is still present across most of the predictions, but the view has shifted further toward external effects. This year's top predictions highlight an increasingly visible linkage between technology decisions and outcomes, both economic and societal.

The top predictions include:

-- By 2015, a G20 nation's critical infrastructure will be disrupted and damaged by online sabotage.

-- By 2015, new revenue generated each year by IT will determine the annual compensation of most new Global 2000 CIOs.

-- By 2015, information-smart businesses will increase recognized IT spending per head by 60 percent.

-- By 2015, tools and automation will eliminate 25 percent of labor hours associated with IT services.

-- By 2015, 20 percent of non-IT Global 500 companies will be cloud service providers.

-- By 2014, 90 percent of organizations will support corporate applications on personal devices.

-- By 2013, 80 percent of businesses will support a workforce using tablets.

-- By 2015, 10 percent of your online "friends" will be nonhuman.

More information on IT trends can be found at www.SupportIndustry.com.

$8.6 Billion per Year Wasted on Inefficient Software Licensing Practices

1E, a software and services company that improves IT efficiency, released new research outlining major trends in software management and distribution.

The Help Desk Efficiency report found that three-quarters of respondents have unused software on their PCs -- averaging three to six applications per user. A leading industry analyst firm estimates that 22 percent of all IT spending is on software, which is $726 billion annually worldwide. Knowing that a single piece of software can cost upwards of several hundred dollars with licensing and support, these findings indicate that a significant percentage of IT software spending is currently being wasted.

While industry analyst firms estimate that IT departments spend on average $12,000 per user per year, more than one-third of respondents to the Help Desk Efficiency Report say they are receiving little or no value from the money their IT department spends on them.

New software requests are a common occurrence, with more than one-half of respondents requesting one or more software applications in the last 12 months. Disturbingly, 62 percent of users have waited up to a week or longer to receive their requested software. This data shows that the impact on user productivity is clearly too great.

Slow and inconsistent delivery of new software is not by chance. The research indicates that the process for requesting new software is fragmented and manual -- with 73 percent of users still initiating requests by phone or email. 1E estimates that deploying user self-service tools to automate software requests could collectively save organizations $8.6 billion per year in IT help desk costs.

Commissioned by 1E and conducted by Vanson Bourne, an independent research company, the report includes responses from 1,000 business users across the United States and United Kingdom.

More information can be found at www.SupportIndustry.com.

Top Ten Retailers for Customer Service Released as Holiday Shoppers Hit Stores

With millions of Americans beginning to flood stores and websites in search of holiday deals, the NRF Foundation, the research and education arm of the National Retail Federation, has announced the top 10 retailers for customer service selected by shoppers in the sixth annual NRF Foundation/American Express Customers’ Choice survey. The survey, which asked 9,291 shoppers which retailer provides the best customer service, was conducted by BIGresearch.

According to shoppers, the top ten retailers for customer service, in alphabetical order, are:

-- Amazon.com

-- JCPenney

-- Kohl’s Department Stores

-- Lands’ End

-- L.L.Bean

-- Newegg

-- Nordstrom

-- Overstock.com

-- QVC

-- Zappos 

More information on customer service can be found at www.SupportIndustry.com.

CIOs Are Change Agents for a More Collaborative, Virtual Workplace

Cognizant, a provider of consulting, technology, and business process outsourcing services, announced today the results of a research report, “Next-Generation CIOs: Change Agents for the Global Virtual Workplace.” The Economist Intelligence Unit conducted the research across Europe and North America and wrote the report, in cooperation with the Cognizant Business Consulting practice.

The report reveals the CIO’s role in restructuring how work is done throughout the organization. Among the more than 400 survey respondents, mostly CIO, CEO, vice president, and director-level, those who are moving toward more virtual, collaborative teams are benefitting from increased innovation, more effective talent recruitment and retention, and higher productivity. One in six said their companies are already seeing these results, and another one-fifth expect to garner benefits within a year.

The CIO should spearhead the transformation to a more virtualized workplace, according to 45 percent of respondents. Only CEOs ranked higher, with 47 percent, indicating the CIO is a strategic enabler who, alongside the CEO, can align IT capabilities with business needs.

Key findings include:

-- Virtual team structures are fostering more productive relationships with internal and external partners.

-- Organizations that have embraced virtual teams benefit from increased innovation and competitiveness, but often lack methods to measure the quantitative impact on the bottom line.

-- CIOs have a unique enterprise-wide perspective and are familiar with the people, tools, technologies, and techniques needed to create a corporate culture of virtual teams. 

More information on virtual workplaces can be found at www.SupportIndustry.com.

New Research Examines Transformation of Customer Contact Centers

Empirix Inc., a provider of service quality assurance solutions for new IP communications, announced the results of an industry survey, conducted by Opus Research, about the adoption of online tools into enterprise customer care programs. A majority of respondents believe that improved customer service through new community-building and collaboration platforms and tools will help them gain a competitive advantage. However, concerns over issues such as network complexity and performance have impeded the adoption of these resources. In fact, 45 percent of respondents claim they do not use social media to communicate with end-users.

In "A Survey of Multi-Channel Customer Care" conducted among 985 respondents earlier this year, Opus found that social networks and Web chat were already employed more than 45 percent of the time to find and purchase by products and to get technical support. Use of the application programming interfaces (APIs) which enable enterprise IT departments to gain access to the cloud-based cash registers, product reviews, marketplaces and message exchanges operated by the likes of Facebook, Amazon and Google is growing exponentially. Both of these sets of findings provide dramatic evidence that companies have to offer their customers and prospects rapid access to a broad set of services in order to meet their expectations.

Key findings include:

-- Transformational times in the Contact Center - Contact center personnel are increasingly engaged in multi-modal, multi-channel and social interactions. Though most believe they are doing an excellent job in meeting customer requirements, nearly 40 percent admit they are on par with their competitors, and only 8 percent feel confident in their leading position in the marketplace. A majority of the executives realize that improved customer service will help them gain a competitive advantage through new communication platforms and tools (e.g., social media).

-- Nearly half of respondents already incorporate social media - Facebook, blogs and Twitter lead the way; Facebook alone has become another viable marketing channel and also helps organizations boost their search engine optimization.

-- Social nets and "cloud-based" apps are in the mix - The majority of organizations surveyed already treat e-mail and Web chat as customer-facing channels, and deployment plans will move outbound alerts, home agents and screen sharing into the mainstream.

-- Facebook and Google Apps are on par with Unified Communications (UC) stalwarts - Cisco and Microsoft OCS dominate UC discussions, but, according to the survey, Facebook, LinkedIn and Google Apps are establishing presence "inside the firewall," showcasing the growing need for UC assurance.

-- More video and mobile apps are coming this year - Organizations are anxious to reach their "anywhere/anytime" customers and prospects, adding another layer to the already complex network.

-- Performance monitoring and testing gain importance - Respondents indicate they are monitoring in order to "improve customer service" and "success rates," both of which create a better customer experience.

-- Overall impressions of social media - Most organizations have not made social media channels a priority (33 percent); however, 31 percent have deployed social media platforms as a low-cost way to communicate with customers and almost no organizations believe that social media for customer care is merely a "fad."

More information on contact centers can be found at www.SupportIndustry.com.

Survey Finds Executives Still Cautious About Long-Term Economic Outlook; Projecting Modest Growth Over Next 12 Months

Optimism among senior executives about the future of the economy increased slightly in the last three months, as companies anticipate continued growth but face challenges adjusting to the new post-recession marketplace. Measuring the economic assumptions of more than 400 executives across six functional business roles, the latest Business Barometer released by the Corporate Executive Board (CEB) shows that sentiment among business leaders is improving due to a positive outlook for sales, IT spending and emerging market growth.

One of the more significant signals from CEB's Q4 Business Barometer is the continued increase in the number of executives who expect rising cost pressures. Overall, 68 percent of executives expect greater cost pressures (up from 63 percent in Q3). Specifically, 74 percent of executives surveyed expect higher core input prices and 69 percent expect higher labor costs (up from 70 percent and 67 percent in Q3 2010 respectively). In addition, half of executives anticipate that energy costs will increase.

Senior executives also have a moderate outlook when it comes to their company's hiring practices. While 65 percent of executives expect hiring volume to improve, only 50 percent of executives now expect total headcount to improve (a slight increase from 48% in Q3).

Areas for Optimism

Despite these challenges, executives are feeling optimistic in a number of key areas that point to a steady improvement in the business landscape. Most notably, growth expectations for emerging markets are increasing. While 32 percent of executives see strong growth prospects in the U.S. and Europe, in contrast a startling 71 percent of executives anticipate accelerating growth in emerging economies (compared to 59 percent in Q3).

CEB's Q4 Business Barometer also indicated an improvement in the overall sales outlook with more than two-thirds of sales executives expecting sales to new and existing customers to rise in the year ahead. Fewer expect to rely on customer discounts compared to the last quarter (77 percent compared to 80 percent in Q3 2010).

Compared to Q3 2010, sentiment among IT executives has continued to increase with 56 percent saying they expect higher discretionary spending (up from 54 percent in Q3 and 47 percent in Q2 2010) and 60 percent saying they expect software spending to increase.

Additional notable findings from CEB's Q4 Business Barometer include:

-- Finance executives continue to expect increases in the number of M&A deals this year (up to 53 percent compared to 51 percent in Q3) although are not yet as optimistic as they were in Q2 (63 percent expected an increase in new deals).

-- Executive sentiment about consumer confidence remained unchanged since last quarter, with only 39 percent of executives anticipating that it will rise in the year ahead.

-- Outside of increased spending in IT, finance executives expect declines in CAPEX for facilities and manufacturing equipment as well as R&D spending, with only 43 percent of executives planning to increase their spending in that area (down from 52 percent in Q3 2010).

-- Seventy-three percent of human resources executives believe unemployment will remain high or grow higher. In relation to current employees, 47 percent of executives believe employee engagement will increase and 48 percent believe unwanted turnover will rise.

-- Sixty-seven percent of supply chain and operations executives expect an increase in the number of orders their company will receive in the next year and 63 percent anticipate higher production levels (which is only slightly down from 67 percent in Q3). 

More information on IT can be found at www.SupportIndustry.com.

Emerging technology trends increase risks of protecting corporate information

An increasingly mobile workforce, cloud computing and social networking all pose significant threats to organizations’ information security programs, according to the 13th annual Ernst & Young Global Information Security Survey. The report indicates that while there is a commitment to protecting data, organizations still face advanced, persistent threats that jeopardize the traditional corporate umbrella.

The report is based on a survey of nearly 1,600 senior executives in 56 countries and takes an in-depth look at the challenges organizations face when it comes to current trends, new technologies used by their workforce and the difficulties of trying to protect information while operating in a virtual business environment. As these changes bring new risks, the survey also examines how organizations are adapting and addressing their information security needs. The results show that 60% perceive increased risk from the use of social networking, cloud computing and personal mobile devices at work. Additionally, 64% of respondents see data protection as one of the top IT risks that has escalated in the current environment.

Additionally, businesses no longer view information security management programs as insurance policies to be used only in the event of a disaster.

Managing the mobile workforce

The proliferation of a mobile workforce has put employees on the front line of information security. According to the survey, respondents view the most serious risk associated with mobile computing as the potential loss of business information; 52% see the use of personal devices as the main cause of data leakage. In addition, 53% of respondents indicate that workforce mobility is a considerable challenge to delivering information security solutions effectively. The majority of respondents (92%) also view employee awareness of security as a challenge, as the demands of an increasingly mobile workforce change the way companies support and protect the flow of information.

Information security at a cost

Overall, organizations recognize the risks that come with emerging technology trends and are taking steps to protect information with stronger information security programs. In fact, half of those surveyed plan to increase their spending on data leakage/data loss prevention efforts over the next year.

But, while spending will increase to protect data, many organizations still feel pressured to reduce IT spend in other areas, leading them to look externally for efficient solutions. Despite an unproven track record, 45% of organizations are currently using, evaluating or planning to use cloud computing services within the next 12 months. The risks associated with cloud computing include data leakage, with 52% identifying it as the largest associated risk, followed by 39% who cite the lost visibility of company data as an increased risk of cloud-based solutions.

However, most respondents (85%) indicate that external certification of cloud service providers would help to evaluate security controls and increase trust.

Evidence also suggests that few organizations have fully assessed the risks associated with social networking. Just one-third report that social media presents a considerable information security challenge and only 10% say examining new and emerging IT trends is a very important information security function.

Plugging the leak

The focus in information security is shifting from a technology-only approach to a technology and people approach, as information security becomes an expanded function of which all employees are aware of and have a responsibility to adhere to. Without clearly defined and communicated security policies on the use of new technology, organizations’ exposure to risk will increase.

More information on technology trends can be found at www.SupportIndustry.com.

Businesses out of touch with automated customer service hell

Businesses are out of touch with the frustration customers experience from automated customer service systems and are jeopardizing their loyalty as a result, according to Ovum.

In a new report, the independent analyst states that businesses need to utilize automated and voice recognition services for phones to stay competitive due to increasing call volumes. However according to its findings, when evaluating their systems, most businesses focus on how they help them to save money and not the customer experience, making them unaware of the high level of frustration they can cause.

Daniel Hong, Ovum analyst and author of the report, said: “There is significant customer frustration when it comes to automated self-service and voice recognition systems. In fact in a recent Ovum survey, one third of respondents said they found it the most challenging aspect of customer service.

“Businesses need to optimize their use of automated and voice recognition services to stay competitive, but there is a fine line between providing cost-effective customer service and actually turning customers off your company. Just a two to three percent increase in automation rates can cause customer frustration and potentially increase customer turnover.

“But many businesses do not realize that their automated systems cause this level of frustration. They are not aware of what their customers are actually experiencing because they are measuring their systems by how much money they are saving them. This is a vulnerable position to be in because frustrated customers are unlikely to be loyal and could be defecting to the competition.”

According to Hong, the most successful automated services are those that are measured on the task completion rate (TCR) as this gives businesses an insight into both efficiency and effectiveness and a better understanding of the customer experience.

He added: “Businesses are under extreme pressure to improve customer retention, reduce costs and do more with less and automated customer service plays a key role. However, getting the system right is paramount to customer loyalty and unless they have an insight into what their customers are experiencing they will not be able to address and reduce frustration.”

More information on customer service can be found at www.SupportIndustry.com.

Seven Major Projects CIOs Should Consider During the Next Three Years

With the IT industry on track to show a compound annual growth rate (CAGR) of 4 percent for the next five years Gartner has identified seven business and IT issues that CIOs should act on during the next three years. The seven issues include:

IT/OT Alignment- Inadequate software management of operational technology (OT) systems will result in a major business failure of a top Global 100 company by 2013.

Executives are realizing there are cost savings and management efficiencies to be gained by integrating the IT and OT groups together. Although efforts to integrate groups are challenging, benefits from streamlined budgets, coordinated planning, consistent technology architectural decisions and maximizing technology purchasing power make for extremely compelling cases for IT and OT group integration.

Business Gets Social -Through 2015, 80 percent of organizations will lack a coherent approach for dealing with information from the collective.

Today, social media is changing the way business is conducted. Understanding the power of communities, the multiple personas of their members expectations, their aspirations and how to interact with them will become essential skills for business in the 21st century.

Pattern-Based Strategy- Through 2015, pattern-seeking technology will be the fastest-growing intelligence investment among the most successful Global 2000.

A Pattern-Based Strategy provides a framework to proactively seek, model and adapt to leading indicators, often-termed "weak" signals that form patterns in the marketplace. It will allow IT leaders to seek-out patterns amidst the burgeoning information sources and model future possibilities.

Cloud Computing- By 2016, all Global 2000 companies will use public cloud services.

Cloud computing represents a shift in the relationship between the providers and consumers of IT-based solutions. It constitutes the basis of a discontinuity that amounts to a new opportunity to shape the relationship between those who use IT services and those who sell them. Gartner said worldwide cloud services revenue (including public and private services) is forecast to reach $148.8 billion in 2014.

Context-Aware Computing- By 2016, one-third of worldwide mobile consumer marketing will be context-awareness-based. Context-aware computing will foster people to be more digital with the assets they have available. Context-aware computing is taking advantage of location and time and is a new era of augmented reality. More than $150 billion of global telecom spending will shift from services to applications by 2012, and the global market for context-aware services will amount to $215 billion.

Sustainability- By 2016, sustainability will be the fastest-growing enterprise compliance expense worldwide. As long as the current science surrounding climate change remains credible, organizations should anticipate that the current focus on energy, water and greenhouse gas (GHG) emissions will continue, and this will draw attention to other environmental issues, such as resource depletion, species extinction, bio-diversity and environmental justice. There will remain many hard trade-offs between an organization’s financial and operational performance and that of its environmental performance. Information systems will be critical in the role -- from governance, risk and compliance, through corporate social responsibility systems, to enabling new and more-sustainable business models.

New Realities of IT: Balancing Cost and Innovation with Risk and Governance- Innovation accomplishments will be among the top-three selection criteria for new CIOs by 2016.

With the recent global recession, innovative thinkers must find new ways to create growth -- in revenue, jobs and industries --- in this new business climate. Cost and value optimization must remain a top priority, while the search for growth continues. Regulatory and corporate demands for greater attention to risk have already begun to emerge. Gartner also foresees a new emphasis on business change governance.

Future Trends

Beyond 2020, Gartner analysts forecast that two emerging trends will become $1 billion markets. First, human augmentation, a technology that focuses on creating cognitive and physical improvements as an integral part of the human body is slowly but steadily becoming a reality and enhancing peoples’ lives. The second trend is wireless power devices. By 2011, there will be more than 1 billion PCs and 5 billion mobile phones in use in the world, and based on the levels of demand Gartner foresees cumulative sales from wireless power products surpassing $1 billion by 2020.

More information on the service and support industry can be found at www.SupportIndustry.com.

Gartner to CEOs: Seize the iPad Opportunity Now

The Apple iPad and its ecosystem are likely to disrupt existing technology use profiles and business models, and CEOs should ensure that its potential is being seriously evaluated inside their organizations, according to a new report from Gartner Inc.

Gartner forecasts worldwide media tablet sales to end users to reach 19.5 million units in 2010, driven by sales of the iPad. Media tablets are poised for strong growth with worldwide end user sales projected to total 54.8 million units in 2011, up 181 percent from 2010, and surpass 208 million units in 2014.

Unless there is a self-evident case to the contrary, Gartner recommends that IT organizations should provide at least "concierge"-level iPad support for a limited number of key users, and prepare a budgeted plan for widespread support of the iPad by mid-2011.

Gartner also recommends that CEOs ask their marketing and product development teams to present a creative briefing as soon as possible, detailing how iPads could be used by the company and its competitors, because the iPad has the potential to be hugely disruptive to the business models and markets of many enterprises.

According to Gartner analysts, the iPad is not a notebook replacement for most users, but a valuable companion device. As it is much less intrusive in face-to-face environments than conventional notebooks, it is well suited to a sales or information-sharing environment. It also makes electronic media consumption effortless and casual, thereby increasing consumption.

As use of the iPad grows, examples are emerging in industries and professions including consumer applications (such as a personal stock portfolio review), book and magazine publishing, architects and realtors sharing plans in the field, finance specialists sharing quotations with prospects, and salespeople looking to demonstrate interactive presentations. Interest from the healthcare sector is high, but the inability of the device to withstand sanitization or operate inside a sealed pouch is a limitation.

More information can be found at www.SupportIndustry.com.

Strategic CIOs Struggle to Achieve Ambitions

The CIO Executive Council surveyed members about the advancement of the CIO role and found it is significantly affected by an IT executive’s relationship with other C-suite leaders and business stakeholders. Eighty percent of those surveyed aspire to be strategic IT leaders and 44 percent of CEOs want them to follow that path. Yet only 21 percent of respondents identify themselves in this role.

Time management is difficult for CIOs trying to expand their role while running IT. While more than 90 percent say they want to focus on business strategy, improving IT operations and systems performance is taking most of their time.

CIOs may be bogged down with day-to-day operational issues due to a lack of appropriate staff to delegate to. Fifty-three percent list developing leadership depth in their staff as the top issue impeding the advancement of their role. And 62 percent say that their top staff-improvement priority is training employees to partner better with business stakeholders. Training staff to understand the business better was a close second.

Having relationships with stakeholders also goes a long way toward building a CIO’s reputation and credibility. Respondents say meeting with stakeholders (more than 70 percent) and creating quick wins for business partners (more than 60 percent) have the most impact.

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Overall IT Worker Confidence Index Drops Sharply from the Second Quarter; Signs of Optimism Still Remain

The IT Employee Confidence Index dropped 7.6 points to 50.6 in the third quarter of 2010, according to a recent survey commissioned by Technisource, the technology services division of SFN Group, Inc. The survey, conducted by Harris Interactive, shows a quick reversal in IT worker confidence in the strength of the economy -- with optimism around this question dropping 18 percentage points from the second quarter of 2010. Coupled with this decrease, 56 percent of technology workers believe fewer jobs are available (versus 49 percent in the previous quarter).

Results from the IT Employment Report:

-- A scant 20 percent of technology workers believe the economy is getting stronger (compared to 38 percent in the second quarter). Nearly half (47 percent) of workers believing the economy is staying the same.

-- More than half of the respondents believe there are fewer jobs available (56 percent). At the same time, 43 percent of IT workers are confident in their ability to find a new job.

-- Thirty-eight percent of technology workers are likely to search for job opportunities in the next 12 months, up a single percentage point from the second quarter of 2010 and the highest since the fourth quarter of 2009.

More information on the IT sector can be found at www.SupportIndustry.com.

IT Spending to Return to Pre-Recession Levels According to Corporate Executive Board

The Corporate Executive Board, a research and advisory services company, released new data that indicates a 3.3 percent increase in IT operational budgets for 2011, following two years of zero growth. This finding is based on the benchmarking of projected IT spending, staffing and project data of CIOs and IT managers at 133 Fortune 1,000 Companies and collectively represents an IT spend of approximately $70 billion. Based on the projections, leading corporations are cautiously preparing for a return to growth.

CEB's research, conducted by its Information Technology practice, also revealed that nearly 45 percent of the IT project budget within the surveyed companies will be allocated to deploying business intelligence and collaboration tools, or to enabling the customer interface. In fact, 10 percent more business intelligence and collaboration projects are expected to be undertaken in 2011 vs. 2010. This spending will come at the direct expense of process automation projects, which will decrease to 41 percent of the total projected budget.

Additional key findings of CEB's benchmarking research include:

-- Broad-based Growth Among Companies: Encouragingly, the trend of increasing IT operational budgets is broad-based, as two-thirds of CIOs will increase expenditures in 2011. This compares starkly with forecasts of last year, when 75 percent of CIOs expected operating budgets to remain flat or decline.

-- Integrated IT Services are Fast Becoming a Reality: CIOs plan to integrate their traditionally siloed infrastructure and applications groups or merge IT into a cross-functional enterprise services organization. By 2012, 20 percent of organizations will be integrated into a multi-functional shared services organization, and an additional thirty-five percent of organizations will have integrated IT services.

-- IT Capital Budgets Will Remain Flat in 2011: Two-thirds of the total IT budget will be continue to be consumed by "keep-the-lights-on" maintenance or costs associated with regulatory compliance activities. IT capital budgets will remain flat in 2011, at 0.6 percent of revenue, mirroring the lack of growth IT organizations saw in the last three years. 

 More information on IT can be found at www.SupportIndustry.com.

CIOs Are Change Agents for a More Collaborative, Virtual Workplace: Survey by Economist Intelligence Unit

Cognizant, a provider of consulting, technology, and business process outsourcing services, announced the results of a research report, “Next-Generation CIOs: Change Agents for the Global Virtual Workplace.” The report reveals the CIO’s role in restructuring how work is done throughout the organization. Among the more than 400 survey respondents, mostly CIO, CEO, vice president, and director-level, those who are moving toward more virtual, collaborative teams are benefitting from increased innovation, more effective talent recruitment and retention, and higher productivity. One in six said their companies are already seeing these results, and another one-fifth expect to garner benefits within a year.

The CIO should spearhead the transformation to a more virtualized workplace, according to 45 percent of respondents. Only CEOs ranked higher, with 47 percent, indicating the CIO is a strategic enabler who, alongside the CEO, can align IT capabilities with business needs.

Key findings include:

-- Virtual team structures are fostering more productive relationships with internal and external partners.

-- Organizations that have embraced virtual teams benefit from increased innovation and competitiveness, but often lack methods to measure the quantitative impact on the bottom line.

-- CIOs have a unique enterprise-wide perspective and are familiar with the people, tools, technologies, and techniques needed to create a corporate culture of virtual teams. 

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