Benefits August 27, 2003

Survey: Q4 IT Hiring Projection Down Slightly

August 27, 2003 (PLANSPONSOR.com) - The vast majority of chief information officers (CIO) (85%) see no change in their hiring activity in the fourth quarter of 2003, as the net increase in IT staff is slightly lower than the previous quarter.
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Looking toward the fourth quarter of 2003, 9% of executives polled plan to expand their IT departments in the fourth quarter and 4% anticipate staff reductions. The net 5% hiring increase compares with a net 7% increase forecast last quarter, according to a survey by Robert Half Technology.

Of those that are looking to expand their head count in the fourth quarter, nearly half (47%) cited corporate growth as the primary factor. The desire to improve customer and end-user support was the next most popular reason given, with 19% of the response.

Further, nearly eight out of 10 (79%) of CIOs reported a need for experienced Microsoft Windows (NT/2000/XP) administrators. Also being sought are SQL Server (40%) and Cisco network administrators (29%).

Breakdowns

For the third quarter in a row, it was CIOs in business services that had the rosiest outlook on technology hiring in the coming quarter, with 18% expecting to hire before the end of the year compared to only 7% that predicted staff reductions. The net 11% hiring increase is more than double the national average. Other net increases were anticipated in:

  • Professional services – 9%
  • Retail – 7%
  • Finance/Insurance/Real Estate – 7%
  • Wholesale – 6%

The outlook was less bullish among the Transportation and Construction industries, where CIOs anticipated net headcount reductions of 6% and 3%, respectively.

By geographical breakdown, the East South Central region of the United States is expected to lead the nation in technology hiring activity during the fourth quarter, where 15% of CIOs plan to expand their IT departments and 3% anticipate personnel cutbacks. The net 12% increase is 7% above the national average. Other net increases were anticipated in:

  • Mid Atlantic – 11%
  • South Atlantic – 9%
  • Mountain – 7%
  • New England – 5%
  • West South Central – 3%
  • Pacific – 3%

Conversely, CIOs in the East South Central forecast a net decrease among their IT employees of 2% and West North Central CIOs are predicting no change.

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