2008 Salaries Flat - IT Professionals Fall Behind

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 expendable

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

51 of the Nation’s Top 60 Metropolitan Areas Add High-Tech Jobs

AeA, a trade association representing all segments of the high-tech industry, released Cybercities 2008: An Overview of the High-Technology Industry in the Nation’s Top 60 Cities. This report examines the high-tech industry in the nation’s largest metropolitan areas focusing on high-tech employment, wages, establishments, payroll, employment concentration, and wage differential.

Cybercities 2008 shows that 51 “cybercities” added high-tech jobs in 2006, according to the most recent metropolitan data available. Seattle led the nation, adding 7,800 net jobs. The next largest net gains in high-tech employment between 2005 and 2006 occurred in the New York Metro Area (+6,400) and Washington, DC (+6,100). On a percentage basis, Riverside-San Bernardino, California saw the fastest job growth in 2006 at 12 percent.

The leading metro areas by high-tech employment in 2006 were the New York Metro Area (316,500 jobs), Washington, DC (295,800 jobs), San Jose/Silicon Valley (225,300 jobs), Boston (191,700 jobs), and Dallas-Fort Worth (176,000 jobs). 2006 data are the most recent available at the metropolitan level.

San Jose/Silicon Valley led the nation in concentration of high-tech workers in 2006, with 286 high-tech workers per 1,000 private sector workers. Boulder ranked second in 2006, with 230 high-tech workers per 1,000 private sector workers. Huntsville, Durham, and Washington, DC rounded out the top five by high-tech concentration.

San Jose/Silicon Valley dominated the manufacturing sectors. It ranked near the top in seven of the nine high-tech manufacturing categories. The New York Metro Area led in many of the tech service sectors, with the highest employment in telecommunications, Internet services, R&D and testing labs, and computer training services. Washington, DC led in computer systems design and related services and engineering services, with nearly three times as many industry workers in these fields as San Jose/Silicon Valley.

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

Canadians say customer service makes or breaks a relationship

Canadians demand good customer service. In fact, according to the second annual TD Canada Trust Customer Loyalty Poll, customer service is so important that 95% of Canadians say their experiences can make or break a relationship with a particular brand or company. This number is up 10% from last year's survey, showing that Canadians are even more serious about the importance of customer service.

Businesses are constantly looking for new ways to show customers that they care: they may offer rewards/loyalty programs or even gifts. Though many appreciate the perks, the bottom line is that Canadians just want to be treated well. In fact, when asked which form of appreciation they are most interested in, 49% ranked "just good customer service" as number one. Rewards/loyalty programs and gifts followed (18% and 17% respectively).

Being friendly to customers goes a long way. When asked what makes customer service great, the number one answer was friendly staff (24%). The number two and three answers to what makes customer service great were quick service and being helpful (15% and 14%). Canadians say they generally receive good customer service, with nearly three-quarters (73%) reporting that they have received good customer service in the past month. This number has increased by 11% over last year.

More information on how to effectively deliver customer service can be found at www.SupportIndustry.com

Proving the Business Case for Implementing the IT Service Catalog and CMDB Together

Don't Miss SupportIndustry.com's Featured Webinar:

Proving the Business Case for Implementing the IT Service Catalog and CMDB Together

Date: Thursday, July 17, 2008
Time: 11:00am PT/2:00pm ET

Many organizations recognize the benefits of ITIL, but struggle with how to effectively and practically implement it within their service organization. Following an ITSM Roadmap can help. This SupportIndustry.com webinar, conducted by Pete McGarahan and FrontRange Solutions, will examine the business case and business value for implementing an IT Service Catalog, in conjunction with the CMDB, as a core part of your service management implementation.

In this webinar, you will:

-- Discover how to establish realistic goals and objectives for your strategic IT Service Management Roadmap.

-- Understand the essential CMDB details necessary to support the critical business services (contained within the IT Service Catalog).

-- Obtain practical tips to better align IT service metrics with business metrics.

-- Learn the necessary steps to ensure your "front-office" and "back-office" are cohesively working together.

-- Walk away with a plan of action to begin your service catalog initiative.

-- Hear what service management challenges and successes your peers are facing via our live attendee polling throughout the webinar.

Register today!

More than 1 Billion PCs In Use Worldwide and Headed to 2 Billion Units by 2014

The number of installed PCs worldwide has surpassed 1 billion units, according to Gartner, Inc. Gartner analysts estimate the worldwide installed base of PCs is growing just under 12 percent annually. At that pace, it will surpass 2 billion units by early 2014.

Gartner defines the installed base of PCs as the estimated number of PCs in use as opposed to the number shipped over a given a period, which is reported in Gartner’s PC forecast and market share reports.

The world’s installed base of PCs remains heavily concentrated in mature markets. However, emerging markets will claim an increasingly larger share of the world’s installed base going forward as the rapidly rising PC penetration in emerging markets continues to drive strong double-digit PC growth.

The global PC installed base is constantly being churned as PC users replace their used machines with new ones. Some retired PCs find their way back into the installed base to second owners through various channels, some are broken up and recycled, but others are simply dumped directly into landfill.

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

Survey Reveals Scandal of Snooping IT Staff

Whilst you sit there innocently working away, little do you realize that a third of your IT colleagues have been snooping around the network, looking at highly confidential information, such as salary details, M & A plans, people’s personal emails, board meeting minutes and other personal information. That’s the findings of a survey released by Cyber-Ark Software, specialists in privileged identity management and digital vaulting solutions.

One third of the survey sampled admitted to using their privileged rights to access information that is confidential or sensitive by using the administrative passwords as a means of peeking at information that they are not privy to. In fact, when IT professionals were asked if they had accessed information that was not relevant to their role, 47 percent admitted they had.
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Even more worrying is the fact that privileged passwords get changed infrequently and often a lot less than user passwords. Thirty percent get changed every quarter and a staggering 9 percent never get changed, giving access indefinitely to all those who know the passwords, even when they’ve left the organization.

Half of IT administrators do not have to get authorization to access privileged accounts which shows a general lack of control of these power identities and indeed understanding over the power that these privileges command.

Seven out of 10 companies rely on out-dated and insecure methods to exchange sensitive data when it comes to passing it between themselves and their business partners with 35 percent choosing to email sensitive data, 35 percent sending it via a courier, 22 percent using FTP and 4 percent still relying on the postal system. This shouldn’t be any big surprise when you learn that 12 percent of these senior IT personnel who were interviewed also choose to send cash in the mail.

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

Contact center pricing and attrition levels worrying outsourcing providers globally

The proliferation of new contact center delivery locations globally has done little to allay fears of wide-spread price and attrition increases for outsourcing vendors. In its most recent strategic focus report, “Trends in Global Contact Center Outsourcing Pricing and Attrition”, independent market analyst Datamonitor illustrates some of the key challenges facing outsourcers in key onshore / offshore delivery markets and highlights strategies that may be deployed to counter these problems.

UK, Netherlands among the most expensive onshore delivery locations; pricing pressure seen across domestic markets

Among the key domestic markets from where contact center outsourcing services are delivered, Datamonitor estimates that the UK, the Netherlands and France rank among the most expensive in terms of fully-loaded price per agent per hour (including wages, benefits, telephony / technology, property, mark-up and other expenses). However, Peter Ryan, head of contact center outsourcing analysis at Datamonitor and author of the report, also notes that while these markets are among the most expensive in which to deal, there are several trends that vendors may face when dealing across established onshore markets.

“It is clear that no matter whether in Western Europe or the USA, contact center vendors are facing problems in terms of recruiting well-qualified contact center agents. Many cite an inability to find contact center agents of a high calibre and are frustrated at their unwillingness to stay in their role over an extended period of time. The result is an erosion of margin or higher costs being passed back to the client. Either way, the vendor’s competitive positioning is compromised.”

Among offshore markets, Canada remains the most expensive, while Colombia, Philippines and India remain low-cost

While most offshore markets have been positioned at a lower level than most domestic delivery locations, the same cannot be said for Canada. Ryan notes that with an ever-high Canadian dollar pushing up prices, US outsourcers, long the mainstay of Canada’s contact center industry, have decided to seek new delivery locations. These include traditional countries such as Mexico and the Philippines, as well as emerging locations, including Egypt, Malaysia and Colombia.

Attrition a global problem with local flavors

While contact center agent churn has been characteristic in all regions of the world, Datamonitor has noted several examples in which local issues have been pronounced. In India and Mexico, the presence of opportunities in other industries has been paramount in prospective contact center agents choosing non-contact center careers. However, in other markets, such as the Philippines, the presence of multiple contact center vendors has led to bidding wars for contact center agents, and has resulted in their switching vendors at a rapid rate.

More information on the customer contact industry can be found at www.supportindustry.com