IT Feels Economic Pinch Reports Janco In Its June 2008 IT Salary Survey
Hiring and spending has slowed down in IT as businesses try to control costs in tough economic times
The prospect for IT professionals is not good. Janco has found that IT compensation growth remains flat, hiring is limited to key replacements, and discretionary spending has been cut back and in many cases eliminated. Victor Janulaitis, the CEO of Janco said, "As we collected compensation data for our mid-year 2008 IT Salary Survey we found that at the end of the first quarter businesses turned off the faucet for IT spending. Many businesses, in response to economic projections, slowed down and halted discretionary spending for software and hardware as well as placed hiring requisitions on a slow track. "
The summary findings in Janco 2008 Mid-Year IT Salary Survey are:
- Hiring demand is now the lowest it has been since 2004. Many enterprises have stopped hiring except for key replacements and those positions are being replaced at lower salary levels.
- Enterprises have slowed down and in many cases eliminated discretionary spending by IT. This has resulted in fewer projects being initiated, consultants use being reduced (if not eliminated), and a slow-down of initiatives that had already been approved.
- In the last twelve (12) months the increases in compensation for most IT Professionals were lower than increases in the cost of living.
- The mean increase in compensation for CIO's was less that 1.5%. The mean compensation for CIOs in large enterprises now is $179,823 and $171,755 for CIOs in mid-sized enterprises. (Large enterprises have over $500 million in revenue and mid-sized have are $100 to $499 million in revenue).
- The mean compensation (which includes bonuses) for all Executive IT positions surveyed now is $144,645 in large enterprises and $131,763 in mid-sized enterprises.
- Positions that were in high demand in the 4th quarter of 2007 such as CSOs and others to develop new Web 2.0 applications are now back to normal hiring patterns.
- Administrative positions in some IT functions are now being looked at as those that are expendable