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IT budgets up, but salary cuts still a concern: study

Ann Bednarz | Oct. 25, 2012
Companies are still looking for ways for IT to reduce costs, still trying to increase employee productivity, and still cautious about raising IT salaries, according to the latest survey data from the Society for Information Management (SIM).

* Training expenses are flat. Education and training have eaten up a consistently modest portion of the IT budget over the last five years, averaging 3.1%.

* Reporting structures vary. The corporate hierarchy varies for CIOs and senior IT executives. The largest percentage of CIOs (43%) report to the CEO. Another 27% report to the CFO, 19% to the COO, and 10% to a business unit executive.

* The CIO role is all about relationships. Nearly half of a CIO's time is spent managing relationships with business colleagues, IT staff and vendors.


Relationship management with business: 24%

Relationship management with IT staff: 13%

Strategy: 12%

Operations: 11%

IT governance: 10%

Human resources: 8%

Relationship management with vendors: 8%

Architecture: 7%

Software development: 6%

Non-IT: 1%

* Outside talent eyed for CIO jobs. More CIOs come from outside the company than are hired from within, SIM reported. Among survey respondents, 54% said their current CIO was hired from outside the company, plucked from an external IT organization. Another 5% said their current tech chief came from outside the company, but from a non-IT organization. The remainder said their current CIO previously worked within the company's IT group (37%) or within the company, but outside of IT (5%).

* IT success = on-time delivery. Timeliness remains the most significant metric for IT. When asked to rank the top IT metrics, respondents cited: projects delivered on time, project ROI, projects delivered on budget, SLA targets, and productivity improvement.

* BI still commands mindshare. Compared to last year's survey, there's very little change in IT project popularity. Business intelligence, cloud computing, and ERP are ranked first, second, and third, respectively, in SIM's list of the top five applications and technologies. The top three are unchanged from SIM's 2011 survey. In fifth place, as it was last year, is CRM. The only newcomer to the top five is collaborative and workflow tools, which climbed from eighth place to fourth in the 2012 rankings.

* IT's moneymaking potential gains attention. Likewise, most of the management priorities for IT pros have a familiar ring to them: increasing business productivity, aligning IT and the business, improving business agility, and reducing IT costs. But one stands out. Revenue-generating IT innovations ranked fourth in the top 10 IT management concerns (it was ninth last year).



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