IT Workforce snapshot

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1 2013 IT Workforce snapshot 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.

2 2013 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 Compensation...10 Geographical Demand for IT Professionals...12 Footnotes...13

3 IT Spending Projections Recent research indicates 48 percent of IT leaders expect their budgets to increase in , which is down slightly from 53 percent in Twenty-seven percent of IT leaders expect their budgets to stay the same and 16 percent expect their budgets to decrease 1, compared to 17 percent in Change in IT Budget 2013 vs 2012 Change in IT Budget 2013 vs % 19% 1 26% 6% 9% Increase by more than 10% Increase by 5-10% Increase by up to Stay the same Decrease by up to Decrease by 5-10% Decrease by more than 10% Don't know 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 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 TEKsystems.com 1

4 IT Spending Projections, cont d IT Spend Projections 2013 IT Spend Projections IT applications services spending 1 18% 19% 30% 6% 9% IT infrastructure services spending 10% 18% 19% 29% 8% 8% IT outsourcing services spending 9% 9% 1 39% 10% 10% IT education/training services spending 6% 7% 1 4 8% 9% Increase by more than 10% Increase by 5-10% Increase by up to Stay the same Decrease by up to Decrease by 5-10% Decrease by more than 10% Don't know 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. TEKsystems.com 2

5 Impacts to IT IT leaders expect operations, marketing/sales and finance/accounting to have the biggest increase in IT needs in The trends with the biggest impact on the organization include business intelligence (BI), cloud computing and security. 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 TEKsystems.com 3

6 Impacts to IT, cont d. 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. TEKsystems.com 4

7 IT Hiring Expectations 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. Expected IT IT Hiring Change in 2013 in 2013 Permanent IT headcount Temporary IT headcount 40% 4 1 Increase Stay the Same Decrease 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. TEKsystems.com 5

8 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 In 2012, U.S. IT unemployment averaged 3.6 percent, down from 4.1 percent in 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 During this time, demand for IT professionals increased the most in healthcare (53 percent), energy and utilities (28 percent), and transportation (24 percent). TEKsystems.com 6

9 Supply and Demand for IT Pros, cont d. Percentage Change in IT Job Requisitions (Demand) Percentage Change in IT Job Requisitions (Demand) Healthcare 5 Energy and Utilities Transportation 2 28% Financial Services Retail Trade Information Technology Government Manufacturing Telecomunications Educational Services Wholesale Trade 16% 1 11% 9% 7% Percentage Increase in Demand 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. TEKsystems.com 7

10 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 Mobile.NET Help/Desktop Support Social Media TEKsystems.com 8

11 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. TEKsystems.com 9

12 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 Further, IT professionals expect to see salaries increase by 3.1 percent or more in Expected Change in IT Salary in 2013 Expected IT Hiring Change in % 1% 8% 4 3 6% Increase by more than 10% Increase by 5-10% Increase by up to Stay the same Decrease by up to Decrease by 5-10% Decrease by more than 10% Don't know TEKsystems.com 10

13 Compensation, cont d. 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. Expected Expected Salary Change by by Skill Skill Set in Set 2013 in % 1% Developers 10% 3 37% 11% 1% 1% Engineers 9% 29% 41% 1 1% Project Managers 7% 31% 41% 1 0% 1% Security 9% 27% 4 1 1% Business Analysts 6% 30% 4 1 0% Architects 8% 26% 4 1 1% Analytics (BI, Big Data, etc.) 7% 27% 4 1 1% Cloud 7% % 1% Help/Desktop Support 27% 47% 11% 1% Mobile 7% % 1%.NET % 1% Social Media 6% 19% 47% 19% Increase by more than 10% Increase by 5-10% Increase by up to Stay the same Decrease by up to Decrease by 5-10% Decrease by more than 10% Don't know 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. TEKsystems.com 11

14 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 inhouse skills, identify gaps and ultimately determine the most effective strategy to attract, develop and retain the best people, concludes Hayman. TEKsystems.com 12

15 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 Footnotes 1 teksystems Annual IT Forecast, January Gartner IT Spending & Staffing Report 2013, January techserve Alliance, January teksystems IT Professional Perspectives Survey, December Bureau of Labor Statistics National Compensation Survey December 2012 TEKsystems.com 13

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