2010 SIM IT Trends Survey Jerry Luftman Executive Director and Distinguished Professor Stevens...

2010 SIM IT Trends Survey

Jerry LuftmanExecutive Director and Distinguished Professor

Stevens Institute of Technology

Society for Information Management

2

8 HEADLINES8 HEADLINES

1. State of IT is ResilientState of IT is Resilient

3. Cautious Improvements in IT SpendingCautious Improvements in IT Spending

4. Judicious Increases in Hiring & Salaries; Judicious Increases in Hiring & Salaries; Minimum DownsizingMinimum Downsizing

2. Progressing Towards Pre-Recession LevelsProgressing Towards Pre-Recession Levels

5. Working Effectively With Business PartnersWorking Effectively With Business Partners

6. HR Not a Major Focus AreaHR Not a Major Focus Area

7. Do IT Professionals Possess the Right Skills?Do IT Professionals Possess the Right Skills?

8. Offshore Outsourcing Trending UpwardOffshore Outsourcing Trending Upward


3

Top 10 2010 IT Management ConcernsTop 10 2010 IT Management Concerns

1 Business productivity and cost reduction2 Business agility and speed to market

*3 IT and business alignment4 IT reliability and efficiency

*5 Business Process Reengineering*6 IT strategic planning7 Revenue generating IT innovations8 IT Cost reduction

*9 Security and privacy

10 Globalization

* Persistent


4

Priority of Time Allocated for IT Business Priority of Time Allocated for IT Business Alignment ConsiderationsAlignment Considerations

IT-business communications regarding

understanding strategy, risks, opportunities, etc

35% (25%)

IT-business partnership (e.g. trust, relationship,

shared perceptions)26%

(30%)

Measurements demonstrating IT

contribution to business16%

(12%)

IT Governance & prioritization

10%(15%)

Skills (business, technical, interpersonal)

9%(7%)Architecture and

technology standards, integration, flexibility

4%(11%)

(2009)(2009)


6

11 Business intelligenceBusiness intelligence

22 Virtualization*Virtualization*

33 Enterprise resource planning (ERP) systemsEnterprise resource planning (ERP) systems

44Continuity planning/disaster recoveryContinuity planning/disaster recovery

55 Cloud computing*Cloud computing*

Top 5 Application & Technology Top 5 Application & Technology Investments 2010Investments 2010

* New to top 5


7

2010 IT budget in comparison to 2009 2010 IT budget in comparison to 2009 (Actual)(Actual)

65%(48%)

(25%)

(23%)

(52%)

66%( 75%)

(2009)


8

2011=201035%

(31%)

2011<201027%

(35%) 2011>201038%

(34%)

2011 IT budget will be in comparison to 2011 IT budget will be in comparison to 2010 (Projected)2010 (Projected)

73%

(*Getting back to pre recession range of >50%)

62%(66%)

(65%)

(2010)


9

2010 IT Budget Allocation (Actual)2010 IT Budget Allocation (Actual)

(2009)

Hardware, Network, Software,

Depreciation32%

(33%)

Internal Staff -Domestic

43%(39%)

Internal Staff -Offshore

3%(4%)

Consulting Services10%

(12%)

Outsourced Staff -Domestic

7%(8%)

Outsourced Staff -Offshore

5%(4%)


10

2010 IT Staff Turnover Rate2010 IT Staff Turnover Rate

2007 Average: 8.132007 Average: 8.13

2008 Average: 8.40 2008 Average: 8.40

2006 Average: 7.202006 Average: 7.20

2009 Average: 6.90 2009 Average: 6.90 2010 Average 2010 Average

5.50 5.50


11

2011 IT Budget Allocation (Projected)2011 IT Budget Allocation (Projected)

(2010)


12

IT Budget allocation for Offshore OutsourcingIT Budget allocation for Offshore Outsourcing

20052005 20062006 20072007 20082008 20092009 20102010 2011 2011 (Projected)(Projected)

7.0


13IT budget divided between running existing IT budget divided between running existing systems and building/buying new systemssystems and building/buying new systems

2010 20102011 (Projected)

2011 (Projected)

Percentage allocated to running existing systems

Percentage allocated to building/buying new systems


14

Anticipated percent of your IT budget Anticipated percent of your IT budget allocated for education/training (2011)allocated for education/training (2011)

(2010)(2010)

2011 Avg: 3.982010 Avg: 3.482009 Avg: 3.19

1% or less of IT Budget

39%(42%)

2% of IT Budget15%

(15%)3% of IT Budget

10%(8%)

4% of IT Budget

2%(3%)5% of IT Budget

15%(17%)

7% IT Budget 2%

10% of IT Budget 12%

(10%)

IT Budget > 10%5%

(4%)


15

IT Budget As Percent of Corporate Revenue 2010IT Budget As Percent of Corporate Revenue 2010

Average: 3.87

52%48%

(2009: 58.3%)(2009: 41.7%)

(2009: 3.83)(2005-9: 3.67)


16IT Budget as % of Revenue by IndustryIT Budget as % of Revenue by Industry

Average: 3.87

Educatio

n/Publis

hing

Wholesa

le/Retail/D

istrib

ution (n

on-computer)

Constructi

on/Arch

itectu

re/E

ngineering/U

tilitie

s

Execu

tive P

lacement/S

earch

Business

Servi

ces

Extern

al Servi

ces P

rovid

er (ESP)/D

ata Pro

cess

ing Servi

ces

Finance/B

anking/F

inancial S

ervice

s/Insu

rance

R & D

/VAR/V

AD/Sys

tems or N

etwork

Integrator

Real Esta

te/Legal

Non-Pro

fit

Govern

ment-Federa

l/State or L

ocal

Hosp

itality

/Resta

urants/

Trave

l / Enterta

inment

Computer/Netw

ork Consu

lting

Healthca

re/ P

harmace

utical/ M

edical/ D

ental

Aerosp

ace

Transp

ortatio

n

Manufacturin

g/Pro

cess

Industr

ies


17

2010 IT Staff Salaries in Comparison to 2010 IT Staff Salaries in Comparison to 2009 (Actual)2009 (Actual)

83%(2009: 81%)

(2009: 34%)

(2009: 47%)

(2008: 19%)

58%(2009 : 66%)


18

2011 IT Staff Salaries in Comparison to 2011 IT Staff Salaries in Comparison to 2010 (Projected)2010 (Projected)

91%

(*Back to pre recession range)

(2010: 45%)

(2010: 46%)(2010: 9%)

39%


19

Other 10%(7%)

CFO31%

(25%)[2.79]

CEO/President44%

(49%)[3.26]

Business Unit Executives

4%(10%)[3.20]

COO11%

(15%)[2.97]

CIO or Senior IT Executive Reports toCIO or Senior IT Executive Reports to

Other: Board of Directors, CAO, Deputy CEO, Provost, Executive Vice President, VP Strategy)

(2009)[Alignment Maturity]


20How long has your CIO (or How long has your CIO (or senior IT executive) held their position?senior IT executive) held their position?

48% =< 3 Years

52% > 3 Years

(2009: 52%)

(2009: 48%)

2010 Average: 5.1 Years 2010 Average: 5.1 Years

2007 Average: 4.1 Years 2008 Average: 4.3 Years

2006 Average: 3.6 Years

2009 Average: 4.6 Years


21

Architecture7%

(7%)

Human Resources*7%

( 8%) IT Governance*9%

(10%)

Non-IT*11%

(10%)

Relationship Management with

Business*18%

( 19%)Relationship

Management with IT staff*11%

(12%)

Relationship Management with

vendors*#6%

Operations12%

(11%)

Strategy*13%

(15%)

Software development6%

(6%)

#new entry in the list

*75% time non-technical*75% time non-technical(2009 >74%)(2009 >74%)

How CIOs spend their timeHow CIOs spend their time


22

Within your company's IT organization

38%

Outside your company from an

external IT organization

54%

Outside your company from an organization

outside of IT4%

Within your company from an organization

outside of IT4%

Your current CIO was hired fromYour current CIO was hired from

Outside of IT (8%): General Management 3%, Marketing 2%, CFO 3%

IT: 92%IT: 92%

Outside your Outside your company: 58%company: 58%


23

2010 IT Organization2010 IT Organization

Centralized68.0%

Decentralized2.0%

Federated/Hybrid28.0%

Networked2.0%

[ 18.4%;22.2%; 18%; 15.7%][ 18.4%;22.2%; 18%; 15.7%]

[ 70.4%;67.5%;77%; 74% ]

[ 70.4%;67.5%;77%; 74% ]

[ 9.5%; 8.8%; 5%; 10.3% ]

[ 9.5%; 8.8%; 5%; 10.3% ]

[2009;2008; 2007; 2006 findings]

*2.87

*3.03

*2.64

* Alignment Maturity


24

Next StepsNext Steps

•Assimilate the data from Europe & Asia

•Further analysis •Publish results (e.g., SIM News, MISQE)

•Use findings as input for future SIM meetings (Local & National)

•Consider findings for new Working Groups or Communities of Interest

•PLEASE FILL OUT NEXT YEARS SURVEY!!!PLEASE FILL OUT NEXT YEARS SURVEY!!!

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2010 SIM IT Trends Survey Jerry Luftman Executive Director and Distinguished Professor Stevens...

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