2010 sim it trends survey jerry luftman executive director and distinguished professor stevens...
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2010 SIM IT Trends Survey
Jerry LuftmanExecutive Director and Distinguished Professor
Stevens Institute of Technology
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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
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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
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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)
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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
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2010 IT budget in comparison to 2009 2010 IT budget in comparison to 2009 (Actual)(Actual)
65%(48%)
(25%)
(23%)
(52%)
66%( 75%)
(2009)
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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)
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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%)
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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
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2011 IT Budget Allocation (Projected)2011 IT Budget Allocation (Projected)
(2010)
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IT Budget allocation for Offshore OutsourcingIT Budget allocation for Offshore Outsourcing
20052005 20062006 20072007 20082008 20092009 20102010 2011 2011 (Projected)(Projected)
7.0
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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
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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%)
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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)
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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
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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%)
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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%
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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]
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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
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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
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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%
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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
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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!!!