• The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
Menu
  • The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
  • IT Shops Struggle to Control Personnel Costs

    August 10, 2009 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 organization’s 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.

    RELATED STORIES

    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 del.icio.us
                   Post this story to Digg
        Post this story to Slashdot

    Share this:

    • Share on Reddit (Opens in new window) Reddit
    • Share on Facebook (Opens in new window) Facebook
    • Share on LinkedIn (Opens in new window) LinkedIn
    • Share on X (Opens in new window) X
    • Email a link to a friend (Opens in new window) Email

    Tags: Tags: mtfh_rc, Volume 18, Number 29 -- August 10, 2009

    Sponsored by
    JAMS Software

    One Scheduler. IBM i, Windows, Linux, and More.

    IBM i teams trust JAMS to schedule and orchestrate jobs across every platform in their environment. Centralized visibility, cross-platform dependency management, and alerts that reach the right person before the business feels it.

    Fewer than 5% of IBM i shops run IBM i only. The rest are managing cross-platform dependencies — often without a clear picture of how they connect. JAMS draws that map, enforces those dependencies automatically, and gives your team a single place to monitor, manage, and recover when something goes wrong.

    If you are running hundreds of CL scripts and custom RPG processes, bring them as-is. JAMS runs them exactly as they do today — except now they are visible, monitored, and part of an orchestrated workflow instead of scattered across folders only one person knows about.

    No consumption-based pricing. No surprise bills when your workload spikes. You pay based on how many machines JAMS talks to — that’s it.

    Learn More → https://jamsscheduler.com/lp/ibm-i

    Share this:

    • Share on Reddit (Opens in new window) Reddit
    • Share on Facebook (Opens in new window) Facebook
    • Share on LinkedIn (Opens in new window) LinkedIn
    • Share on X (Opens in new window) X
    • Email a link to a friend (Opens in new window) Email

    Magic Software’s Revenue and Profits Decline in Q2 Who Has the Strongest IT Brands?

    Leave a ReplyCancel reply

TFH Volume: 18 Issue: 29

This Issue Sponsored By

    Table of Contents

    • 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
    • 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?

    Content archive

    • The Four Hundred
    • Four Hundred Stuff
    • Four Hundred Guru

    Recent Posts

    • Big Blue Ships Bob 2.0 And Premium Package For IBM i
    • Your IBM i Jobs Don’t Live On An Island Anymore
    • FalconStor Creates Cloud Clean Room To Prove Backup Recoveries Work
    • Talking Git On IBM i With A Bunch Of IBM i Gits
    • IBM i PTF Guide, Volume 28, Number 22
    • More Power Systems Price Hikes, This Time They Are “Directional”
    • AI Is Not Just For Developers, It Is For Everyone At Your Company
    • Guru: Finding Data In The Forest – Exploring Three-Part Naming In SQL
    • Former IBMer’s New Book Puts The Midrange In The Spotlight
    • Have You Tried To Buy A Server Lately?

    Subscribe

    To get news from IT Jungle sent to your inbox every week, subscribe to our newsletter.

    Pages

    • About Us
    • Contact
    • Contributors
    • Four Hundred Monitor
    • IBM i PTF Guide
    • Media Kit
    • Subscribe

    Search

    Copyright © 2025 IT Jungle