August 2006 IT Organization Survey: CIOs Expect IT Organizations to Keep Growing

By Allan Alter  |  Posted 08-09-2006

August 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.

For more data and analysis, see CIO Insight 's Research Center blog at go.cioinsight.com/researchcentral

Research Guide:

  • Finding 1: IT organizations are getting larger, not smaller.
  • Finding 2: Large companies are relying on contractors, outsourcers and H1B visa holders.

    Next page: IT organizations are getting bigger, not smaller.

    IT organizations are getting

    bigger, not smaller.">

    Finding 1. IT organizations are getting bigger, not smaller.
    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.





    Next page: Large companies are relying on contractors, outsourcers and H1B visa holders.

    Large companies are

    relying on contractors, outsourcers and H1B visa holders.">

    Finding 2. Large companies are relying on contractors, outsourcers and H1B visa holders.
    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.



    Research Guide:

  • Finding 1: IT organizations are getting larger, not smaller.
  • Finding 2: Large companies are relying on contractors, outsourcers and H1B visa holders.

    Read our previous surveys on the IT organization's current state and future:

  • The IT Organization: Why is Morale So Bad? (November 2004)
  • The Future of IT (January 2005)
  • The Future of IT 2004 : What's in Store for Today and Tomorrow? (January 2004)

    Related stories:

  • The Downside of Managing Up: Can a CIO Be Too Strategic? (February 2005)
  • Culture Clash – Special Issue on Alignment issue (October 15, 2004)
  • Labor Pains (October 2003)
  • Case study: Johnson & Johnson and Managing IT (December 2001)
  • IT's Enduring Image Crisis (from eweek.com)