CIOs PROJECT CONTINUED IT HIRING IN FOURTH QUARTER
Mid-Atlantic Region and Finance, Insurance and Real Estate Sector Anticipate Strongest Need for Technology Professionals
Chief information officers (CIOs) anticipate steady demand for information technology professionals in the next three months, according to RHI Consulting's quarterly Information Technology Hiring Index. Twenty-three percent of CIOs plan to hire additional personnel in the fourth quarter of 1999, while just 2 percent anticipate staff reductions. Seventy-three percent of CIOs forecast no change in their current hiring levels, up from 65 percent in the previous quarter. The net 21 percent increase in hiring is down seven points from the third quarter but in line with the pattern seen late last year.
The national poll includes responses from 1,400 CIOs from a stratified random sample of U.S. companies with 100 or more employees. It was conducted by an independent research firm and developed by RHI Consulting, a leading consulting services firm that provides information technology professionals on a project basis.
"As companies expand operations and increase their technology investments, demand for the skilled professionals required to implement new IT initiatives will remain strong," said Greg Scileppi, executive director of RHI Consulting. In addressing the seven-point decline, Scileppi noted that during the same period last year CIOs projected a similar decrease in hiring compared to the previous quarter. "In addition to seasonal patterns, the drop could be the result of a hold on new IT initiatives until after the completion of Y2K date conversion projects."
Scileppi said that due to the increased use of Internet and intranet applications, including e-commerce and customer support management systems, there is growing need for experienced professionals to support these technologies. "Help desk technicians, Web architects and network engineers, among others, are in strong demand nationwide," he said.
Regional Outlook
CIOs in the Mid-Atlantic states forecast the most active hiring of any U.S. region during the fourth quarter -- 30 percent of respondents plan to add IT staff and just 2 percent expect a decline. The resulting net 28 percent increase in hiring is up eight percentage points from the region's third-quarter forecast.
"Continued economic growth in the Mid-Atlantic region has stimulated employment, particularly within the area's financial services and investment management companies," Scileppi said. "Business services and construction firms are driving IT hiring in Pennsylvania and New Jersey."
Firms in the Pacific states also expect robust hiring during the fourth quarter, according to technology executives surveyed. CIOs project a net 27 percent increase in staffing activity. "In California, rapid expansion in the software and computer services industries is increasing demand for skilled IT talent," Scileppi noted. "Businesses in Washington and Oregon cite demand within the high-technology manufacturing and trade industries as companies there increase investment in information systems infrastructures."
Also expecting hiring levels exceeding the national average are IT executives in the New England and Mountain regions, where CIOs predict net hiring increases of 23 percent and 22 percent respectively.
Industries Hiring
CIOs from the finance, insurance and real estate sector were most optimistic about hiring plans for the upcoming quarter, according to the survey. Thirty-four percent of respondents from these industries anticipate adding IT personnel, while just 1 percent foresee cutbacks. The resulting net 33 percent increase in hiring is 12 percentage points above the national average.
"The current strong economy has spurred nationwide demand for commercial, consumer and industrial loans, which has led to expansion within the finance, insurance and real estate industries," Scileppi said. "The implementation and use of online financial services including banking and investment management is also increasing IT hiring, particularly for those skilled in Web development and database management."
Staffing activity is also expected to exceed the national average in the wholesale industry, where CIOs anticipate a net 30 percent increase in IT hiring; and transportation, where CIOs project a net 26 percent hiring increase.
RHI Consulting provides firms with skills IT professionals for projects ranging from multi-platform systems integration to help desk and network support. It has more than 100 locations in North America and Europe, and offers online job search services at
http://www.rhic.com.
