Staffing

Quotes:

The North American IT staff augmentation market is emerging from one of the worst years in its history, but a fast recovery is not foreseen, according to Dataquest Inc., a unit of Gartner, Inc. Gartner Dataquest analysts said the North American IT staff augmentation market is on pace for revenue totaling $20.7 billion in 2002, a 0.8 percent decline from 2001 revenue of $20.8 billion. The market is projected to reach $21.4 billion in 2003, a 3.3 percent increase from 2002 estimates.

"'It appears the IT staff augmentation industry may be entering a period of radical change that is fueled by the fact that major market inhibitors are anticipated to outweigh major drivers during the next 15 months,'" said Ted Kempf, principal analyst for Gartner Dataquest's IT services group. "'Barring an unforeseen sharp pickup in the U.S. economy, the IT staff augmentation space will most likely enter a period of consolidation to bring demand more in line with supply.'"

Source: "Gartner Dataquest Forecasts Consolidation for North American IT Staff Augmentation Industry," November 18, 2002

"A new study by people3, a Gartner, Inc. company, reports that the average base salary for all IT jobs in 2002 is $67,900 (a 5.1 percent increase over 2001) and total cash compensation is $72,900 (a 6.1 percent increase over 2001)."

"The findings in people3’s 2002 IT Market Compensation Study are based on research compiled from survey data submitted by 153 organizations and represent detailed compensation data for 33,771 IT employees within the United States."

"'Quite often leadership is confronted with the conflicting goals of cutting costs, while at the same time providing their employees with competitive pay,' said Diane M. Berry, vice president of research at people3. 'While controlling compensation costs might provide a short-term financial benefit, the ramifications of losing top talent, especially people who possess skills or knowledge critical to the operation of a particular enterprise, far outweigh the monetary savings.'"

Source: "people3 Compensation Study Reveals That Average Base Salary for IT Professionals Has Increased 5.1 Percent," July 9, 2002

"While the use of IT contractors dipped in 2001 as a result of tighter budgets and deferred or discontinued IT projects, the trend is expected to reverse with the rebounding economy, according to the 2001 IT Contractor Compensation Survey, a new survey by people3, Inc., a Gartner Inc. company, and Mercer Human Resource Consulting."

"In November 2001, people3 and Mercer Human Resource Consulting surveyed 36 organizations using a comprehensive questionnaire to find out how companies use IT contractors. The surveyed organizations collectively employ more than 6,200 IT contractors."

"According to the survey, 47 percent of companies reduced their use of IT contractors between November 2000 and October 2001. During the same time period, 31 percent increased their reliance on contractors and 22 percent made no changes. However, for the 12 months following November 2001, 36 percent of the companies expected to increase their use of IT contractors, 33 percent anticipated a decrease, and 31 percent projected no change."

"'In most organizations today, IT staffs include a blend of full-time, permanent employees working alongside contract employees,' said David Van De Voort, leader of the Global IT Workforce Effectiveness group for Mercer Human Resource Consulting. 'This provides flexibility and gives organizations a competitive edge in matching IT skills and resources to their ever-changing needs. We see no signs that this trend is abating.'"

Source: "People3 and Mercer Say Use of IT Contractors Expected to Rebound With the Economy," June 20, 2002

"To ensure that security and business continuance programs meet their intended objectives, IT leaders must ensure they have an effective human capital infrastructure to support these programs, according to a new report by people3, a Gartner, Inc."

"'Unfortunately, in most security and business continuance programs, the vast majority of resources have been dedicated to technical aspects, leaving the human capital element as an afterthought,' said Linda M. Pittenger, president and CEO of people3. 'The concern is that while many organizations will have created state-of-the-art technology defenses for their IT environment, those defenses will ultimately fail due to the lack of an effective human capital infrastructure.'"

"'Business and IT leaders must also take a hard look at their human capital management processes to ensure their enterprise's security objectives and standards are reflected in their organization's culture, organizational structure, work process designs, and staffing and career development processes,' said Pittenger."

Source: "Gartner's people3 Says IT Leaders Must Review the Human Capital Element of Their Security and Business Continuance Programs," April 12, 2002

"Researchers at Massachusetts Institute of Technology and Gartner, Inc. joined forces and discovered new dynamics for employee motivation. While managers and employees understand the benefits of agility -- such as telecommuting, task forces, internal SWAT teams and instant-anywhere communications -- a new social order is emerging in the Agile Workplace. Key traits of communities in the Agile Workplace are the following:

1. They are self-selecting.
2. Leaders emerge, they are not appointed.
3. Leaders are needed, not managers.
4. They are inclusive. Communities continually attract new people with new ideas.
5. They are efficient. News, knowledge and information travel at lightning speed."

"'The rewards of the Agile Workforce go to employees who are highly self-motivated and not self-conscious,' said Michael Joroff, MIT senior researcher and project co-director. 'Those who pride themselves on following directions to the letter will be less comfortable in this new environment.'"

Source: "MIT and Gartner Study Calls for Leaders, Not Managers," March 20, 2002