August 2006 IT Organization Survey: CIOs Expect IT Organizations to Keep Growing
By Allan Alter | Posted 08-09-2006August 2006 IT Organization Survey: CIOs Expect IT Organizations to Keep Growing
The first set of results from our new IT Organization survey reveals that the future of IT is brighter than many think. IT organizations grew 3.8% on average during the past 12 months, and 45% of respondents expect their companies to add full-time staff in the next year. The need for IT labor is leading companies to hire more outsourcers and contractors, but not necessarily at the expense of their in-house staff. In fact, only 27% of the companies that have cut back their full time IT staff say outsourcing is a reason. The bottom line: there's little indication that IT organizations are withering away, despite the many changes taking place.
Research Guide:
Next page: IT organizations are getting bigger, not smaller.
bigger, not smaller."> Finding 1. IT organizations are getting bigger, not smaller. Next page: Large companies are relying on contractors, outsourcers and H1B visa holders.
relying on contractors, outsourcers and H1B visa holders."> Finding 2. Large companies are relying on contractors, outsourcers and H1B visa holders. Research Guide:
Read our previous surveys on the IT organization's current state and future:
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For more data and analysis, see CIO Insight 's Research Center blog at go.cioinsight.com/researchcentral
IT organizations are getting
Despite fears that outsourcing and improved productivity will result in shrinking corporate IT departments, they're actually growing, particularly at small and midsize companies. And CIOs expect them to keep growing. Firms are adding IT staff to support overall corporate growth, which requires more IT applications and services. Yes, some companies' IT organizations are shrinking, but even at these firms, outsourcing isn't the main reason. One likely outcome will be more job openings for IT professionals with the right skills.
Large companies are
Though the makeup of the IT labor force is shifting slowly, the use of foreign outsourced labor is picking up, at the expense of both in-house staff and independent contractors. Foreigners on H1B visas are a significant presence mainly at large companies. There's not much support among IT executives to boost H1B quotas—except at companies that already rely heavily on contractors and outsourcers.
