Volume 18, Number 29 -- August 10, 2009

IT Shops Struggle to Control Personnel Costs

Published: August 10, 2009

by Timothy Prickett Morgan

According to a new report out of Gartner, IT managers and chief information officers are having a tough time getting their arms wrapped around personnel costs in their shops.

Gartner has just put its 2009 IT Market Compensation Study out, which is based on surveys it performed back in March at 325 IT organization in the United States, and some 66 percent of the respondents to the survey said that they did not have a formal IT workforce planning process that would "enable them to leverage opportunities presented by this downturn."

I don't find that shocking. I am a bit perplexed what the other 34 percent were thinking, in fact.

Anyway, there are some more concrete bits of data in the Gartner compensation report, including the fact that 64.1 percent of those taking part in the survey said they would put hiring on hold for 12 months (at the time, between March 2009 and February 2010), with the remaining 35.9 percent saying they were going to be adding staff.

"Considering that workforce-related spending is the largest part of the IT budget, one of the primary challenges for CIOs and HR leaders for the remainder of 2009 and into 2010 will be finding ways to control labor costs while engaging and retaining the workforce," explains Lily Mok, the research vice president at Gartner who does compensation tracking. "Since it will still take time for the economy to establish a new normal, the impact of this recession will continue to be felt on an organizationís bottom line, as well as on the overall job market. This could cause companies to consider making further cuts in workforce-related spending."

Gartner's research indicates that companies are having trouble finding IT system architects, database administrators, ERP system programmers and analysts, project managers, Web and Internet architects, and Web application programmers. And not because there are not plenty of candidates, but rather because the people that are knocking on their doors and email boxes don't have the skills and experience that companies want. And to make it more difficult, median salary increases are on the decline in IT shops. Averaged across all of Gartner's survey respondents, salary increases for IT staff are projected to be 3 percent, down from the 3.5 percent level in 2008. And 2010 is shaping up to have an average increase of only 3 percent, too. By the way, payrolls outside of IT are averaging only a 2.8 percent increase in 2009 and a 3 percent increase in 2010, based on budget expectations when Gartner did its survey back in March, so don't feel slighted. IT personnel are in the same boat as all other employees.


Gartner, Forrester Chop IT Spending Forecasts Again

IT Spending Forecasts Slashed by Gartner, Forrester

Global IT Spending Barely Ahead of 2008; Some Regions Showing Strength

Healthcare and Utilities Lead Vertical Markets in IT Spending

Global 2009 IT Spending Will be Up, Down, Forrester Says

Gartner, Forrester Cut 2009 IT Spending Growth Estimates

Forrester Says IT Spending Is Choppy Across Industries and Geographies

IDC Cautiously Reaffirms IT Spending Projections for 2008

IT Managers Are Under Pressure to Cut Costs, Says IDC

                     Post this story to
               Post this story to Digg
    Post this story to Slashdot

Sponsored By

Security Compliance costs are out of control.

Organizations spend hundreds of hours running manual security compliance tasks, time that could be better spent running their business. Carol Woodbury designed SkyView Policy Minder to help automate security policy compliance tasks and bring these costs under control.

Watch and listen to Carol tell how some of our customers are using Policy Minder to save them hundreds of thousands of dollars in compliance costs.

To see the video from Carol Woodbury, go to:

Editor: Timothy Prickett Morgan
Contributing Editors: Dan Burger, Joe Hertvik, Brian Kelly, Shannon O'Donnell,
Mary Lou Roberts, Victor Rozek, Kevin Vandever, Hesh Wiener, Alex Woodie
Publisher and Advertising Director: Jenny Thomas
Advertising Sales Representative: Kim Reed
Contact the Editors: To contact anyone on the IT Jungle Team
Go to our contacts page and send us a message.

Sponsored Links

ARCAD Software:  Managing ILE Development - View recorded Webinar!
PowerTech:  Request a free System i security assessment today!
COMMON:  Celebrate our 50th anniversary at annual conference, May 2 - 6, 2010, in Orlando



IT Jungle Store Top Book Picks

Easy Steps to Internet Programming for AS/400, iSeries, and System i: List Price, $49.95
The iSeries Express Web Implementer's Guide: List Price, $49.95
The System i RPG & RPG IV Tutorial and Lab Exercises: List Price, $59.95
The System i Pocket RPG & RPG IV Guide: List Price, $69.95
The iSeries Pocket Database Guide: List Price, $59.00
The iSeries Pocket SQL Guide: List Price, $59.00
The iSeries Pocket Query Guide: List Price, $49.00
The iSeries Pocket WebFacing Primer: List Price, $39.00
Migrating to WebSphere Express for iSeries: List Price, $49.00
Getting Started With WebSphere Development Studio Client for iSeries: List Price, $89.00
Getting Started with WebSphere Express for iSeries: List Price, $49.00
Can the AS/400 Survive IBM?: List Price, $49.00
Chip Wars: List Price, $29.95

Four Hundred Stuff
Infor Launches New CRM App for System i

ERP Application Functionality Prompts Migration to IBM System i

Linoma Adds Features to i OS Encryption Utility

SEA Brings i OS Performance Tool to North America

IBM to Buy SPSS for $1.2 Billion

Four Hundred Guru
Designing DB2 for i Stored Procedures for Simulated Array Handling

Using Free-Format Calcs with Cycle Programs

Admin Alert: Changing User Passwords on the Fly

Four Hundred Monitor
Four Hundred Monitor's
Full iSeries Events Calendar

System i PTF Guide
August 1, 2009: Volume 11, Number 31

July 25, 2009: Volume 11, Number 30

July 18, 2009: Volume 11, Number 29

July 11, 2009: Volume 11, Number 28

July 4, 2009: Volume 11, Number 27

June 27, 2009: Volume 11, Number 26

TPM at The Register
SGI chases Cray with baby cluster

Cisco claims unified computing is taking off

Can Liquid Computing ride Cisco's California coattails?

BMC ekes out quarterly growth

Ethernet switch sales pounded by falling economy

Canonical removes middleman from Ubuntu management

AMD demos live Magny-Cours migration

Cray lands $70m super deals

Cray swings to a profit in second quarter

HPC CIOs drifting into clouds

Sun deals Sparc boxes, x64 iron

Micron preps fat DDR3 server memory

Chip group says 2009 will be terrible, but not awful

GlobalFoundries inks wafer baker deal with STMicro


ProData Computer Services
East Coast Computer
SkyView Partners
RJS Software Systems

Printer Friendly Version

A Peek Inside IBM's Smart Analytics System

Maximum Availability Foresees Growth with 20/20 Program

Vision Solutions Promotes Two Flavors of Continuous Data Protection

As I See It: Daniel, Part One

Avnet and Arrow: System Sales Might Have Hit Bottom

But Wait, There's More:

New Midrange User Group for Tennessee Valley . . . Amtrak Re-Ups Server Outsourcing Contract with Big Blue . . . Magic Software's Revenue and Profits Decline in Q2 . . . IT Shops Struggle to Control Personnel Costs . . . Who Has the Strongest IT Brands? . . .

The Four Hundred


Subscription Information:
You can unsubscribe, change your email address, or sign up for any of IT Jungle's free e-newsletters through our Web site at

Copyright © 1996-2009 Guild Companies, Inc. All Rights Reserved.
Guild Companies, Inc., 50 Park Terrace East, Suite 8F, New York, NY 10034

Privacy Statement