- Results of Harvey Nash's 2007 Strategic Leadership Survey - A CIO Perspective - Industry in confident mood with higher salaries, expanding packages and IT budgets in line with inflation - Outsourcing market maturing - Gender gap persists - only eight per cent of CIOs are women
According to the latest annual CIO Survey from Harvey Nash, the global recruitment and IT outsourcing service provider, UK businesses are placing greater value than ever on CIOs who embrace a strategic function.
Over the past year, the number of CIOs sitting on the operational board has increased to 46 per cent from 43 per cent last year. The average salary of the 500 CIOs who participated in the survey is GBP104,000, compared to GBP84,000 last year.
This indication that salaries and board membership is on the rise underlines the increasingly central role of CIOs in the delivery of strategic business objectives.
In addition, heads of IT are eagerly taking on more responsibility. This year, 76 per cent are in agreement that their role has become more strategic, with 66 per cent having already expanded their scope of responsibility for the coming year to involve strategic decision making in the broader needs of the business; specifically in logistics, business continuity and corporate change management.
An upbeat mood is indicated through increased salaries and improved bonuses - 87 per cent of CIOs received bonuses, and half of these were over 20 per cent of their salaries. Budgets remain healthy, with the majority of CIOs expecting increases in line with inflation, and 47 per cent reporting higher IT budgets over the past year. The confident mood is supported by the strong belief that IT is becoming better-integrated with the business, with 59 per cent of the respondents stating they were well-integrated, an 18 per cent increase on last year.
Outsourcing remains high on the agenda, and the stabilising of spending at a high level indicates that the market is maturing. Eighty-five per cent of CIOs outsource, and nearly half expect to increase spending on outsourcing in the next year. Overall, the average share of the IT budget dedicated to outsourced projects is 24 per cent.
The drivers to outsourcing are shifting as CIOs adjust their sourcing strategies to safeguard critical functions in-house and outsource basic operations to reduce cost - 82 per cent of CIOs believe that multi-sourcing is the best approach. Offshoring continues to play a central role in CIO strategies, and nearly three-quarters agree that their expectations have been met by their suppliers. India remains the most common offshore destination, but offshore work is evenly spread over the other countries being used, from Brazil to Vietnam to Romania.
The survey identified other top priorities for CIOs looking forward to next year, including security, meeting project deadlines and gaining competitive advantage. Managing staff turnover, recruitment and development is also a key issue as CIOs feel the impact of a fiercely competitive market for talented people.
Other findings include an unchanging 3:1 ratio between permanent and contract staff, an enduring link between salary and budget size and the gender gap remaining unchanged with just eight per cent of CIOs being women.
Harvey Nash's eighth annual survey of CIOs was conducted with KPMG and supported by the Sunday Times. Over 500 CIOs from leading UK businesses we surveyed.
Commenting on the findings, Simon La Fosse, Director and Head of CIO Practice at Harvey Nash, said: "Technology is enabling more and more business value to be created and CIOs are enthusiastically leading the charge. It is rewarding to see that CIOs appear to be in rude health and are increasingly addressing business challenges as an integral part of the executive team."
Andrew Haigh, a partner in IT Advisory at KPMG, commented: "When deciding what they are looking for from a third party outsource provider, value for money, skills, experience and service are almost taken as a given. However the characteristics that will really differentiate the third party are emotional intelligence and the ability to build meaningful longer term relationships through mutual respect. Of course, to manage such relationships requires different skills within the CIO's team than those needed to manage an internal delivery function. As the model changes, the CIO will need to look at developing or refreshing their own team's skills."
For a copy of the report, 2007 Strategic Leadership Survey - A CIO Perspective, contact Sara Erdwin on +44-20-7333-0033.
Notes to Editors: About Harvey Nash
Harvey Nash, a global professional recruitment consultancy and IT outsourcing service provider, is committed to delivering the very best talent and IT solutions to a broad base of clients.
Its 3,000 staff and associates, operating from 28 offices covering the USA, Europe and Asia, pursue the highest levels of integrity, professionalism and quality in providing its unique portfolio of services: executive search, interim management, IT and finance recruitment and IT outsourcing.
Harvey Nash
