Professional Documents
Culture Documents
YE
TH
12
R
OU
IN
W
NO
HARVEY NASH
CIO SURVEY 2010
NEW DECADE, NEW OPPORTUNITIES?
in association with
Contents
1. Executive summary 6
2. CIO Spotlight 10
3. Leaders in technology: salary review 13
4. Survey results 18
4.1. Global results* 18
4.2. United States results* 28
4.3. Europe results* 42
5. European country profiles 55
5.1. Belgium 56
5.2. France 58
5.3. Germany 60
5.4. Ireland 62
5.5. Netherlands 64
5.6. Scandinavia 66
5.7. Switzerland 68
5.8. UK 70
6. Conclusions by PA Consulting Group & Harvey Nash 72
In the 12th year of producing our detailed survey, Harvey Nash is extremely proud to
have delivered a research report that is more insightful and expansive than ever before.
An incredible 2,655 respondents from every corner of the globe invested their time,
experience and opinions into helping us produce the 2010 CIO Survey. It has been a
phenomenal undertaking and we are indebted to all the participants and contributors for
making this report one of the most extensive studies of its kind in the world.
As such, I would like to thank our ongoing partners at PA Consulting Group for providing
their expertise and helping our audience better understand the challenges facing today’s
CIO.
In this year’s report you will be able to see analysis presented on a global basis, compare
trends across continents and explore country-by-country overviews.
The results show that the CIO community is currently wrestling with significant pressures
as the Great Recession fades into history and a new decade, with a new competitive
landscape, emerges.
Offshore destinations for outsourcing, the emergence of new technology models like
cloud computing, a redefined skills shortage and even the strategic role of the CIO itself
have all been fundamentally changed by the economic crisis.
Regarding CIO career development, evidence suggests that the recession has had a
disproportionate impact on remuneration and job satisfaction for some CIOs. The
gap between the 'have’s' and 'have not’s' appears to be widening and could point to a
significant migration of CIO talent in the coming years.
This report is truly our best yet and I am sure you will find the results both enlightening
and valuable in your own career development and business operations.
Albert Ellis
Chief Executive,
Harvey Nash plc
N.B. Countries indicated are where the CIOs are primarily based
Harvey Nash CIO Survey 2010 5
1. Executive summary
New insights
In 2010, the CIO Survey by Harvey Nash with PA Consulting Group ‘went global’ with
thousands of CIOs from around the world contributing their insight and opinions. The
decision to analyse and compare responses on a global basis has created a fascinating
report that examines how CIOs and other global leaders in technology view themselves,
their function and the challenges they face.
Fifty-nine per cent of CIOs believe executive remuneration should be restrained until the
economic recovery is more stable while 72 per cent said they would consider freezing or
cutting their own salary to improve the financial stability of their organisation.
In analysing base salaries of CIOs from around the world, it becomes clear that a
significant divide exists. Germany and the U.S. come out strongest on remuneration
with Belgium and Ireland struggling to retain parity in compensating top IT talent. In
the new Base Salary Matrix we have created a comparison tool for the spectrum of
leadership roles in technology. The matrix contrasts the average remuneration in each
country with peers on a global basis.
The CIO's reward for their recession-busting performance seems to be a stronger strategic
voice and, in many cases, a seat on the operational board. The strategic focus of the CIO
is growing; 71 per cent of global respondents foresee a greater role in strategy decisions
in 2010. To fulfil a wider set of responsibilities CIOs are focusing on advancing their skill
set with executive education being considered by many. Communication and influencing
skills are the most important to CIOs according to 81 per cent of them while leadership
skills, 76 per cent, and strategy and planning skills, 57 per cent, are also prioritised.
However, career development signals for CIOs are not all positive. Careers were certainly
stunted by the recession and CIOs are now more wary about moving to their next role
until the economic environment stabilises further.
A smaller world
During the course of this research a number of significant differences have been
identified about CIOs from around the world. Just as important, however, are the many
similarities that were discovered. For example, 44 per cent of CIOs now report to the
CEO or CFO, more than any other senior executive. The greater influence CIOs have as
a result of their reporting line provides them with a greater understanding of the wider
business environment and how technology can be used as a competitive tool in global
markets.
Additionally, the impact of the global recession was, well, global. Every organisation was
affected in one way or another and every CIO faced challenges associated with the
recession. Fifty-five per cent of the respondents occupy a role with global responsibility
and can well relate to the difficulties faced by peers on the other side of the world.
This year the skills shortage has returned to prominence. Fifty-eight per cent say they
will suffer from a technology skills shortage at some point, up 4 per cent on last year.
Compared to the global average, the skills shortage is more pronounced in Scandinavia
at 72 per cent, Switzerland at 71 per cent, the U.S. at 68 per cent, the Netherlands at 65
per cent, Belgium at 67 per cent and Germany at 62 per cent.
The UK at 56 per cent and France at 30 per cent appear to be less severely impacted
by the skills shortages which are below the global average. The skills most in demand by
CIOs from around the world are business analysis, project management and architecture,
but the intensity of demand differs by country and region.
During the recession, innovation projects were used by many CIOs as a weapon to
deliver the cost savings demanded by the organisation. However, now many CIOs, 60
per cent, are shifting their innovation focus into growth activities and using innovation
projects to enhance the quality of products and services. Additionally, 58 per cent of
global respondents are innovating to speed up the delivery to market of their offering to
capitalise on remerging growth trends.
Two developing innovation models are gaining prominence as CIOs face the world in
2010. Software as a Service (SaaS) will become more important to 35 per cent of global
respondents this year. In Germany, it will be adopted by 83 per cent while in Scandinavia
42 per cent of CIOs will be increasing their use of SaaS. Cloud computing is on the
agenda of 51 per cent of CIOs globally, which is a positive trend. Yet in France, the
expected acceptance of a wider cloud model is at a far more positive 78 per cent.
Half of the respondents this year will collaborate more than last year. It appears that
many CIOs realised during the recession that their organisations were somewhat on their
own, but that in order to grow this year they will need to collaborate with others. The
main barrier to collaborating is now a lack of agreed behaviours between organisations
whereas before the recession the key obstacle was the physical dispersion of teams.
Outsourcing
CIOs invested in outsourcing throughout the recession to remain as cost effective
and responsive to their organisation’s rapidly changing priorities. This year, 87 per cent
of CIOs will maintain or increase their investment in outsourcing projects, up 11 per
cent on last year’s sentiment. Globally, the top outsourced functions remain software
application development, 62 per cent, software application maintenance, 53 per cent,
and IT infrastructure, 53 per cent.
The role of India in offshore outsourced programmes remains dominant, but the
dominance is waning and the rise of Eastern Europe as a preferred hub, especially for
European-based CIOs, is undeniable. More than one in ten global CIOs now undertake
offshore activity in Eastern Europe. That figure is significantly higher within those
European countries closest to the region.
These trends have combined to depress job satisfaction on a global basis, which is down
4 per cent this year at 76 per cent. The situation is worse in selected countries. For
example, career fulfilment among CIOs is at 60 per cent in Germany and 68 per cent in
the U.S., down significantly on previous years.
However, the result may not be a mass exodus of dissatisfied CIOs from their current
employers. Respondents remain cautious about moving jobs due to the wider economic
fragility, but there is also a greater emphasis on non-monetary benefits. CIOs who shared
foxholes with their CEOs and CFOs to bring their organisations through the worst of the
recession have a greater sense that they’ve earned the right to help shape the next
phase of growth.
If employers realise that a greater sense of loyalty exists – at least for now – and invest
in the development of their CIOs, they will be able to retain key talent over the next 24
months.
Please note: The 2010 CIO Survey from Harvey Nash is global in nature and was
undertaken across many different countries, languages and currencies. For ease
of production the currency used is the U.S. Dollar. At the launch of the survey the
conversion rate of U.S. Dollar to UK £ Sterling and Euro was $1 = £0.62 and €0.69.
CIOs are unique creatures who are often viewed singularly in the context of their own
organisations rather than as a member of a global community of technology leaders.
In this new section, we aim to shine a spotlight on the CIO and identify some of their
similarities and key differences.
One of the most profound differences concerns the compensation that CIOs receive.
This report includes the following section that is dedicated to comparing remuneration
by a range of variables. The difference between the highest and lowest average CIO
salaries is a significant $46,932.
Beyond remuneration, there are key differences in the role and mindset of CIOs around
the world. This section compares their strategic influence, job satisfaction, leadership
skills and career aspirations in the top ten regions surveyed.
CIO becoming
Country more strategic Job satisfaction
1 Germany 100% 60%
2 Belgium 83% 98%
3 Scandinavia 81% 97%
4 Netherlands 74% 88%
5 Global average 71% 84%
6 UK 71% 83%
7 US 68% 78%
8 Ireland 67% 82%
9 France 50% 66%
10 Switzerland 46% 73%
There is unanimous agreement from CIOs in Germany that their role is becoming more
strategic. Both Belgian and Scandinavian CIOs are also far more likely than the average
CIO to adopt a more strategic role this year. Worryingly for CIOs in Switzerland, only 46
per cent of the community believe they will be more strategic this year.
With job satisfaction for C-level executives so closely linked to their strategic relevance,
it is clear to see that those with a greater appreciation of a more strategic role this
year are also more satisfied in their career. There is one major exception to this rule,
Germany, where despite the CIO community agreeing that their role is becoming more
and more strategic they remain unsatisfied with their position.
Conversely, despite having the lowest strategic input of the countries surveyed, CIOs
from Switzerland remain more satisfied in their jobs than French and German peers.
UK and U.S. CIOs have a job satisfaction that corresponds with their below-average
strategic input.
While CIOs globally rate communication and influencing skills highest in importance,
this is not the case in Belgium, Scandinavia or the U.S. Leadership is the most highly
regarded ability by CIOs in those countries. Swiss and Dutch CIOs place less emphasis
on strategy and planning skills than most while French CIOs have a far higher regard for
the importance of an ROI focus than their peers. IT awareness is the least relevant skill
according to the global average, but CIOs in Ireland and Germany still rate it twice as
important as the average.
Less 1 yr 1 - 2 yr 2 - 5 yr 5 - 10 yr 10 yr +
Germany 60% 20% 20% 0% 0%
France 44% 12% 22% 0% 22%
Switzerland 30% 13% 35% 13% 9%
UK 21% 30% 38% 9% 2%
Global average 19% 24% 39% 12% 6%
Netherlands 19% 26% 39% 12% 4%
US 18% 20% 39% 15% 8%
Ireland 17% 21% 26% 15% 21%
Scandinavia 3% 15% 50% 21% 11%
Belgium 0% 11% 56% 33% 0%
CIOs are less likely to pursue a new role than they were pre-recession. German CIOs are
the most strategic but also less satisfied with their careers so it is perhaps unsurprising
that they are the most likely to move jobs in the next 12 months. French, Swiss and
UK CIOs are also more likely than the global average to want to move this year. At
the opposite end of the spectrum, Belgian and Scandinavian CIOs have emerged from
the recession as the most risk averse regarding career prospects with far fewer CIOs
intending to move jobs in the next two years.
In this new section to the report for 2010 the base salaries of CIOs and other
technology leaders from around the world are analysed together to provide a snapshot
of remuneration trends. The average base salary is compared by geography and by job
title. This report also introduces the Harvey Nash Base Salary Matrix which identifies
salary hot spots for various countries.
Those countries that sit above the global average of $144,734 are Netherlands,
Scandinavia, Switzerland, the U.S. and Germany, which leads the salary table by a solid
margin. With an average base salary of $118,269 Belgium occupies the number ten slot
with a base salary that is $56,731 below Germany. Ireland, the UK and France also sit
below the global average. There is no doubt that a significant difference can exist in
your base remuneration depending on which country you operate in.
The global average base salary for CIOs is understandably in the upper tier of
all technology leaders. Somewhat surprisingly, IT professionals without significant
management responsibility have an average base salary only $175 less than IT
managers. One likely reason for this parity is the influence of senior technology
consultants in the survey response. While they do not always have a team of direct
reports, consultants working for some of the world’s biggest firms can also be some of
the best paid individuals in the sector.
The base salary matrix shows that CIOs and CTOs are best served operating from the
U.S. where these leaders can earn an average base salary of $190,682. Germany is also
an attractive destination in terms of salary with a slightly lower $187,500 average.
IT Managers have a six-figure global average base salary and this is the case for all
countries where data could be collated except Belgium. The UK, Netherlands and
Ireland joined Belgium below the global average for IT managers with France best
compensating this group of technology leaders at $18,396 above the global average.
www.harveynash.com/CIOSurvey
2010 is the first year that Harvey Nash has surveyed the CIO community on a global
basis. It was a tremendous success with over 2,655 diverse responses from as far afield
as London, Warsaw, New York, Cape Town, Lahore, Buenos Aires and practically every
destination in between.
3%
12%
C - level
Mid management
Professional
48%
17%
29% CEO
CFO
COO
27%
CIO
15%
Other
12%
While they are senior executives in their own right, only 42 per cent of the global
respondent community currently sit on the operational board of their organisations.
However, this finding is in line with 2009 results from both Europe and the U.S. and has
remained fairly constant since 2007.
Similarly, the range of industries that respondents represent is consistent with previous
Harvey Nash studies. Information technology and financial services represent one-third
(33 per cent) of the total respondent population.
20%
Figure 3. Top industry sectors: global
17%
16%
15%
10%
8%
6%
5% 5% 5% 5% 5%
5% 4%
3%
2% 2% 2% 2%
0%
n
a
s
lo n
n
ec nd
ice s
tic t
g
Co e d i a d
g
ice l
il
om
m
rv ia
gis or
rv es
io
ar
no tio
he
io
rin
m an
ta
rin
cs ta
se anc
gy
r
He s
ar
s
ct
hc
lo sp
se sin
at
s
Re
to
Ot
ee
ch a
lec
tu
ive lm
Ph
tru
te form
bli en
uc
d n
alt
Bu
Fin
ac
gin
a
Te
ct fi
Ed
pu rnm
an Tr
ns
uf
ra t,
En
In
te as
an
ve
in dc
M
Go
oa
Br
24% More
Less
Same
12%
64%
Perhaps unsurprisingly with the scale of IT budgets they manage, almost two-thirds (64
per cent) of respondents feel the role of the CIO is becoming more strategic within
their organisations. This is a similar result to last year’s European research which found
that more than 60 per cent of respondents felt the role was becoming more strategic.
2009 and 2010 figures reversed the decline of influence perceived between 2006 and
2008, which suggests the recession has not eroded the strategic role of the CIO.
The top three priorities listed are still given significantly more attention compared to
what might be considered more long-term ambitions, such as innovation, new product
development and entry into new markets. This suggests that a healthy level of caution
remains among the global CIO community.
Global respondents prioritise a similar spread of skills compared to research from last
year, as Figure 5 demonstrates. Business analysis skills are the highest priority, sought by
44 per cent of respondents. Project management and architecture skills are also in high
demand. Although business analysis has shifted into the number one position, the top
three skills from 2009 remain the top three most desired skills in 2010.
50%
Figure 5. Skills most in demand: global
44%
40% 37%
35%
31%
30% 28%
23%
22%
21%
20%
16%
10%
6%
0%
en ip
aly ess
r
e
t
y
en t
ity
t
he
en
em jec
en
ur
eg
tin
em sh
t
sis
r
an sin
Ot
ct
em
pm
cu
at
ag n
ag Pro
s
Te
an tio
ite
Bu
str
Se
ag
elo
ch
m rela
IT
an
v
Ar
De
m
an
s
es
ice
m
sin
rv
Bu
Se
The financial impact of skill shortages is becoming more evident. Sixty-five per cent
of global respondents said their growth will be impacted or significantly impacted as a
result of skills shortages.
When asked how their technology team rated on specific skills, almost two-thirds (65
per cent) feel their teams are good or excellent at building and maintaining relationships
with the business. Sixty per cent are also rated highly for project management skills.
On the global stage this year, it can be seen, in Figure 6, that innovation investment
provides the framework for innovation success.
30%
27%
26%
25%
20% 17%
15% 15%
15%
10%
5%
0%
< 1% 1-3% 4 - 8% 9 - 15% > 15%
Collaborating to achieve innovation success has also been a hot topic during the
recession and into the recovery. Eighty-nine per cent of global respondents feel they
are successful at encouraging innovation collaboration within their technology teams.
The purpose for collaborating can be related directly to the priorities set by the
business (as outlined in section 4.1.5). Sixty per cent collaborate on innovation projects
to enhance the quality of projects and services while 58 per cent use it to speed up
development and delivery of products and services.
Collaboration partners are similar throughout the different regions researched. Figure 7
below shows that suppliers and customers are the two groups favoured by most CIOs
for collaboration.
50%
40%
34%
30%
30%
21%
20%
12%
10%
5%
0%
e
rs
s
irm al
r
er
or
n
he
lie
s f ion
No
m
tit
s
ot
pp
sto
ice ss
pe
s,
su
rv fe
Ye
cu
se pro
th
co
th
wi
ith
wi
th
s,
wi
w
Ye
s,
Ye
s,
s,
Ye
Ye
Over one-third of global respondents (35 per cent) state there was no trigger to their
innovation collaboration activity. However, over half (50 per cent) indicate that a
change in the market or a change in business focus, such as the recessionary pressures
being exerted on most organisations in the past 12 months, triggered their innovation
collaboration.
While many global CIOs took advantage of the recession to drive new innovation
activity, there are still many barriers to collaborating on innovation projects.
Rank Barrier %
1 Lack of agreed behaviours for collaborating 28%
2 Resistance among potential users 18%
3 Physically dispersed teams 16%
4 Concerns about security 13%
5 Not being able to find the right people 9%
6 Technology tools are ineffective 9%
43% Decrease
Increase
28%
Although the pressure on IT budgets is expected to ease in 2010, a strong focus on cost
savings and efficiency remains. The survey findings show that outsourcing and offshore
development will play an increasing role in these ongoing efforts.
In this global survey, almost half of the respondents, 48 per cent, spend more than 10
per cent of their IT budget on outsourcing. This is a minor decline from 52 per cent last
year but remains significant and the majority.
Expectations for the next 12 months show that over one-third, 36 per cent, will
increase their spend on outsourcing. This reflects a higher proportion of respondents
planning to increase outsourcing activity as recessions end and recoveries emerge. In
addition to those increasing their spend in 2010, 51 per cent, will maintain their current
outsourcing spend, while a minority 13 per cent will cut back their outsourcing activity.
50%
40%
30% 22%
20% 14%
8% 8% 6%
10% 1%
0%
nc n
n
re
t
en n
O
he
en
na io
tio
pm io
tu
BP
BP
KP
e
te cat
t
Ot
lo at
rtm
ra
uc
IT
HR
ve lic
eg
ain li
str
pa
m pp
de app
nt
fra
de
ea
si
in
e
IT
ar
ar
IT
ste
ftw
ftw
Sy
So
So
Reflecting previous studies in Europe and the U.S., respondents to this global survey
placed cost control at the heart of their outsourcing strategies. Thirty-nine per cent of
respondents make this their highest priority while 35 per cent argue that accessing new
skills not possessed by the internal IT team is the most important reason to outsource.
Outsourcing to offshore locations has never been more popular with 90 per cent of
global respondents maintaining or increasing their investment in offshore activity this
year. The favoured destination continues to be India where two-thirds, 66 per cent, of
global CIOs outsource activity.
However, the dominance of India appears to be eroding while other regions, such as
Eastern Europe, are becoming more prominent. Eastern Europe is growing in popularity
again this year with 11 per cent of respondents locating projects there. The UK held the
third position at 10 per cent. Meanwhile, emerging destinations such as Vietnam, the
Philippines and Brazil are growing in popularity year over year.
The percentage of global respondents whose expectations were not met by offshore
work has fallen for the second consecutive year. While those dissatisfied with their
offshore partners remains over one-third of the total, at 35 per cent (down from 38 per
cent last year). Thirty-seven per cent of global CIOs say that offshore work remains a
key part of their recession-busting strategies.
CIOs are staying with their employers for longer: 43 per cent have been at the same
organisation for five years or more. The number who have been in their current role for
less than a year has dropped to 11 per cent from 17 per cent last year.
When looking to the future, there is a significant amount of career caution. Those
global CIOs who are looking to move in the next 12 months are at a historic low of
25 per cent. However, within the next two years almost half, 48 per cent, plan to be in
new jobs.
There is also a slight dip in job satisfaction this year with 77 per cent claiming to be
fulfilled or very fulfilled in their current role. This figure has historically been above 80
per cent in previous years and in all surveyed regions.
5%
45%
One in five global CIOs (19 per cent) are actively looking for their next job while another
43 per cent are open to talking with headhunters about new opportunities.
The top two reasons CIOs give for looking for a new role are the need for a new
challenge, stated by 35 per cent of respondents; and greater involvement in business
strategy, outlined by 24 per cent.
Global base salary: Despite the recession, the base salary for CIOs around the globe
remains healthy with 82 per cent earning more than $100,000 and almost one in five
earning over $200,000.
34%
35%
29%
30%
25%
19%
20%
13%
15%
10%
4%
5% 1%
0%
00
0
0
00
0
0
00
00
00
00
,0
,0
0,
0,
0,
0,
00
75
10
20
15
$5
$2
-$
-$
-$
-$
an
n
0
ha
th
00
00
00
00
et
ss
,0
0,
,0
5,
Le
or
50
$5
00
$7
M
$1
$1
When asked about the impact of the recession on their base salary almost two-thirds,
62 per cent, of CIOs say their base salary was frozen in 2009. Another 11 per cent
received a base salary cut. Seven per cent of global CIOs had a base salary cut of less
than 20 per cent while 4 per cent had cuts of more than 20 per cent. Over a quarter of
respondents, 27 per cent, were fortunate enough to have a base salary increase during
the last 12 months.
In addition to base salary, the range of benefits offered to CIOs from around the world
still includes pensions, car allowances, stock options and bonuses. Bonuses have been in
the news often in 2009 and 2010, mainly as a result of the banking industry. However, a
bonus remains the benefit of choice for most employers with 81 per cent offering one.
Sixty-seven per cent of CIOs are offered a contributory pension while share options are
provided to 40 per cent of global respondents.
The recession has had an impact on the size of bonuses with 36 per cent of global CIOs
having their bonuses reduced this year and a further 19 per cent having their bonuses
eliminated entirely.
Dissatisfaction with remuneration is higher this year compared to last year with a
quarter of respondents, 25 per cent, unhappy with their financial package. This is
up from 20 per cent last year. However, the majority of global CIOs are content and
conscious of the fragile economic position their organisations are operating in.
Ninety per cent of all C-level respondents from the U.S. are senior technology
executives describing themselves as CIO or CTO.
5%
16%
C-level
30%
Senior management
Mid management
Professional
49%
Reporting lines also reflect the seniority of participants with almost one-third of U.S.
respondents, 31 per cent, reporting to the CEO or CFO. A further 13 per cent report to
the COO.
There has been a subtle shift in U.S. reporting lines towards the CEO, 15 per cent in
2009 to 21 per cent this year, and the CFO, 7 per cent in 2009 to 10 per cent this
year. It would appear that during times of recession CEOs and CFOs from the U.S. are
determined to manage technology more closely.
15%
15%
10%
10%
8% 8%
6%
4% 4%
5% 3% 3%
2% 2% 2% 2% 2% 2% 2%
0%
es
an olo on
in dc nd ing
e
ies
r
n
a
s
es
y
g
g
sin e nd
es
il
he
m
ar
io
rin
lit
rin
in
ta
vic
vic
Fin chn ati
vic
cia gy
ilit
ra t, R
Bu ive m lm a
co
oa a rtis
hc
es dia
ar
at
Ot
ita
sh
Re
tu
ee
te as P
er
te form
Ph
er
Ut
uc
er
le
alt
bli
sp
ac
ve
gin
ls
ls
ct fi
Te
ss
Ed
Pu
He
Ho
uf
Ad
ga
En
In
an
Le
M
Br
Information technology and financial services are the dominant sectors for U.S.
respondents, much as they are in the global respondent community. In the U.S., a
slightly larger percentage of respondents are from information technology, 20 per cent
compared to 17 per cent globally. Healthcare is also more widely represented in the
U.S, 8 per cent, compared to 5 per cent globally. This may partly reflect the multibillion
dollar investment in technology that the U.S. healthcare industry is receiving from the
U.S. government stimulus package.
There is more similarity in the middle tier of budget size between U.S. and global
respondents. In the U.S. 29 per cent manage budgets of $10m to $50m U.S. and
globally 28 per cent of respondents do. The remaining 30 per cent of U.S. respondents
operate budgets between $50m and $1bn, compared to 20 per cent globally.
With greater financial responsibility than their global CIO peers, it is somewhat
surprising that U.S. respondents don’t enjoy greater strategic influence. Less than one-
third, 28 per cent, are members of their operational board, far lower than the 42 per
cent global average.
When asked directly about the strategic influence of the senior technology executives
in their organisation, almost two-thirds, 64 per cent, say they expect the influence to
grow in the coming 12 months. However, this is 5 per cent lower than 2009 figures
from the U.S.
23%
More
Less
Same
13%
64%
Cost saving remains the top issue for U.S. CIOs with 77 per cent focusing on it this year.
Increasing operational efficiencies through technology is an objective for 74 per cent.
Innovation activities are more important to U.S. respondents with 43 per cent naming
it a key issue compared with a global average of 38 per cent. Mobile commerce receives
more attention in the U.S. with 18 per cent marking it important compared with 14
per cent globally. Green IT initiatives are a low priority for both the U.S. CIO and their
global peers.
There was a significant increase in the number of U.S. CIOs who believe their
organisation is suffering from a technology skills shortage. In 2009, 49 per cent of
respondents agreed that their IT function lacked the skills needed to compete. This year
that number has jumped to 62 per cent - a 13 point hike.
Perhaps as a result of surviving the recession and entering the beginning of the next
growth cycle, 68 per cent of those who said there was a skills shortage believe it is now
influencing the organisation’s ability to grow.
The skills most in demand, including business analysis and project management, relate
strongly to how technology interacts with the business. Additionally, skills in technology
architecture are in short supply according to more than one-third, 37 per cent, of U.S.
CIOs.
40% 39%
40%
37%
36%
32%
30%
22%
20%
19%
20%
16%
10%
7%
0%
en ip
aly ess
r
e
t
y
en t
y
t
he
en
em jec
en
ur
eg
tin
rit
em sh
t
sis
an sin
Ot
ct
em
pm
cu
at
ag n
ag Pro
s
Te
an tio
ite
Bu
str
Se
ag
lo
ch
m ela
ve
IT
an
Ar
sr
De
m
an
es
ice
m
sin
rv
Bu
Se
Innovation investment is also consistent when comparing U.S. and global trends. As
can be seen in Table 12 below, most U.S. respondents, 55 per cent, invest 4 per cent
or more of their IT budget in innovation activity. Globally that number is 59 per cent.
Despite investing slightly less in technology innovation than the global average, U.S.
CIOs are seeing strong innovation outcomes. Over one-quarter, 26 per cent, report
innovation ROI of 10 per cent or above.
18%
Very successful
31%
Reasonably successful
Limited success
51%
The majority of U.S. CIOs use collaboration for customer-facing innovation activity.
Almost two-thirds, 64 per cent, collaborate to speed up the development and delivery
of products and services to enhance the customer experience. Additionally, 62 per
cent collaborate to improve the quality of products and services. Fifty-five per cent
of respondents cite maximising resource utilisation as an internal uses for innovation
collaboration.
Overall, the barriers to collaboration in the U.S. appear less pronounced compared to
other regions. While the lack of agreed behaviours for collaborating is the top barrier
in the U.S. and globally, less than a quarter of U.S. respondents, 23 per cent, rate it as a
significant issue compared to 28 per cent of global CIOs.
Rank Barrier %
1 Lack of agreed behaviours for collaborating 23%
2 Physically dispersed teams 18%
3 Resistance among potential users 17%
4 Concerns about security 15%
5 Not being able to find the right people 11%
6 Technology tools are ineffective 7%
When it comes to collaboration partners U.S. CIOs are collaborating less than their
global peers with suppliers. While 46 per cent of U.S. respondents work with suppliers
on innovation projects, the global average is 56 per cent. However, CIOs from the U.S.
are more inclined to collaborate with customers, 37 per cent in the US compared to
34 per cent globally.
60%
50%
46%
30%
20%
20%
13%
10%
5%
0%
ne
rs
s
irm al
er
er
or
lie
s f ion
No
th
m
tit
s
pp
,o
sto
ice ss
pe
su
s
rv fe
Ye
cu
se pro
ith
co
ith
,w
ith
th
,w
s
wi
,w
Ye
s
Ye
s,
s
Ye
Ye
According to 39 per cent of respondents, the most significant trigger for innovation
will be a change in business focus. Organisational focus will continue to change in
the upcoming months as the fast-moving recessionary pressures of 2009 continue to
evolve into a growing recovery in 2010.
Looking forward to 2010 and 2011 the IT budget outlook for the U.S. is marginally
better than the global average. Although 27 per cent expect further cuts this year, a
wider majority, 46 per cent compared to 43 per cent globally, expect flat budgets while
another 27 per cent in the U.S. expect a budget increase.
Increase
30%
Decrease
20%
15%
13%
9%
10%
0%
2006/07 2007/08 2008/09 2009/10
The proportion of U.S. CIOs indicating they are planning to invest more in outsourcing
activity this year is flat at 38 per cent. However, there has been a significant drop
in U.S. respondents cutting outsourcing projects. Last year 22 per cent of U.S. CIOs
cut projects as budgets were threatened. This year 15 per cent are likely to reduce
outsourcing activity, a level similar to 2007/08. It would appear that the majority of
respondents are adopting a ‘wait and see’ policy for 2010/2011 with 48 per cent
holding spending at last year’s levels.
The most important reason to outsource for U.S. CIOs remains cost reduction. Fifty
-one per cent of respondents rate it as a top priority compared to a global average that
is 12 points lower at 39 per cent. Providing business flexibility and accessing skills not
readily available internally remain important, but the unremitting focus on cost remains
definitive in the U.S.
U.S. CIOs outsource to a range of providers, both onshore and offshore. The offshore
providers have become a dominant player in many regions and across industries. In
fact, 88 per cent of U.S. respondents said they were planning to maintain or increase
their offshore activity in the next 12 months.
This growth in offshore outsourced projects goes on despite rising frustration with the
quality of work undertaken by offshore providers. In the past three years, this study has
identified that expectations are met less now than ever before. Projects falling below
expectations have almost doubled from 21 per cent in 2007 to 38 per cent today.
58%
60%
Met expecations
30%
27%
21%
20%
10% 6% 5% 4%
0%
2007/08 2008/09 2009/10
India still dominates the offshore outsourcing market for 77 per cent of U.S. respondents,
but this is down from 81 per cent last year. With rising frustration and expectations not
being met, 8 per cent of respondents say they have now taken outsourced projects
back onshore to the U.S. and another 17 per cent would consider it. Eight per cent of
U.S. respondents have taken work to China, 6 per cent to the Philippines, 5 per cent to
Eastern Europe and 1 per cent to Vietnam.
Only 15 per cent will not be utilizing any SaaS approach in 2010
The majority of U.S. respondents seem fairly evenly split between those looking to
emerge from the recession by actively investing, innovating and overtaking recession-
weary competitors, 31 per cent, and those who continue to adopt a cautious fiscal
approach to their business operations with additional cost cutting, 34 per cent.
A further one in five U.S. respondents, 21 per cent, are focusing part of 2010 on clearing
the backlog of projects which were stalled by the recession. The final 14 per cent plan
to continue business as usual, albeit with minimal costly new initiatives.
Encouragingly, 28 per cent of U.S. CIOs say their ROI from IT projects was unaffected
by the recession. A further 24 per cent say they expect to see ROI in the next two years
from projects initiated during the recession.
With regard to the use of Software as a Service (SaaS) in 2010, the responses indicate
that the approach is growing in popularity. Only 15 per cent will not be utilising any
SaaS approach in 2010 while 42 per cent will be delivering some products or services
via SaaS. Thirty-nine per cent say they will be delivering more projects via SaaS in 2010
than in 2009.
4%
15%
None, we run all applications in-house
A strong majority of U.S. CIOs will develop a wider cloud computing approach in their
organisations in 2010.
Figure 21. CIOs considering a wider cloud computing approach in 2010: U.S.
Yes
40%
No
60%
There are a range of reasons behind why 60 per cent of U.S. respondents are
pursuing a wider cloud computing approach in 2010. Achieving greater flexibility for
their organisation is one reason given by 61 per cent of those adopting more cloud
computing initiatives. Fifty-seven per cent are pursuing the same strategy to reduce
costs while 40 per cent are looking for cloud computing to increase operational
efficiency. Finally, 26 per cent are looking to cloud computing as a way to better pursue
new technology developments.
The communication priorities for U.S. CIOs in 2010 reflect a more traditional and face-
to-face approach for internal messaging versus online and social networking related
channels.
Seven per cent of U.S. CIOs have no internal communication plan, and fewer than 25%
use personal blogs, corporate blogs and social networks.
Figure 22. Length of time with current employer, last three years: U.S.
35% 32%
30%
27% 27%
25% 25%
25% 23% 2007/08
22%
21% 21%
2008/09
19%
20% 18%
2009/10
15% 13%
11%
9%
10%
7%
5%
0%
Less than 1 year 1 - 2 years 2 - 5 years 5 - 10 years More than 10 years
Only seven per cent of U.S. respondents have been employed less than one year with
their current organisation, compared to 11 per cent last year. Those who have been
with their employer less than 24 months also dropped from 21 per cent in 2009 to 13
per cent this year.
U.S. CIOs in the mid range of tenure (two to five years) had the biggest population
growth, up from 22 per cent last year to 32 per cent now. There are fewer U.S.
respondents in the longest tenure category (more than ten years), dropping from 27
per cent to 23 per cent, possibly as a result of early retirement departures due to the
difficult business environment.
Although the recession continues to bite in many regions and across industries,
the U.S. emerged from the recession at the end of Q3 last year. This has led to a
relative normalisation of career ambition for the next 12 months within the U.S. CIO
community. Nineteen per cent are planning a career move in the next year with a
further 19 per cent planning to move in the next 24 months. While this is slightly below
the global average of 25 per cent looking to move during the next 12 months and 23
per cent looking over the next 24 months, it is in line with previous U.S. trends.
The recession has also impacted job satisfaction for U.S. CIOs even though it has been
on a steady decline since 2006. In that year, 88 per cent of U.S. CIOs said they were
fulfilled or very fulfilled in their role. In 2007, it dropped to 79 per cent and in 2008 to
75 per cent. Last year, it fell another 6 per cent to 69 per cent.
Because the trend has continued in good and bad times, it cannot be wholly attributed
to running a technology function in a recession. It more likely reflects the desire of
many U.S. CIOs to play a more prominent business strategy role, which was given by 28
per cent of U.S. respondents as a reason for looking for a new role.
The percentage of U.S. CIOs currently looking for a new role is 6 per cent higher
compared to last year’s figures and is at 16 per cent today. In addition, 28 per cent
of respondents say they are seeking a new job in order to have greater involvement
in business strategy, while another 28 per cent are looking for a fresh challenge. To
that end, 39 per cent of U.S. respondents would take a call from a headhunter with an
interesting role.
Salaries of U.S. CIOs have remained robust during the recession and are also healthier
than those of their global peers.
27% 29%
30%
25% US
19% Global
20%
13%
15%
10%
4%
3%
5%
1% 1% 1%
0%
Less than $50,000 $50,000 - $75,000 $75,000 - $100,000 $100,000 - $150,000 $150,000 - $200,000 More than $200,000
There are more global CIOs in the lower and median base salary categories, up to
$150,000 per year. In the top two tiers, however, U.S. CIOs far outweigh the global
average. Thirty-four per cent of U.S. respondents earn a base salary between $150,000
and $200,000. Finally, 33 per cent of U.S. CIOs, 14 per cent more than the global
average, enjoy a base salary of more than $200,000.
Twenty-nine per cent of U.S. CIOs benefited from a base salary increase in the last 12
months, while the majority, 60 per cent, had their base salaries frozen. This is broadly
in line with global averages. Eleven per cent of U.S. respondents had their base salaries
cut during the recession, while 4 per cent experienced a cut of more than 20 per cent.
Bonuses remain a benefit enjoyed by 85 per cent of U.S. CIOs. The major difference in
benefits between U.S. CIOs and their global peers is the preference for share options
or equity, offered to 58 per cent of U.S. respondents versus a global average of 40 per
cent. A company car is offered to only 12 per cent in the U.S. versus a global average
of 50 per cent.
Considering the cuts to base salary and scaled-back benefit packages last year, it is
perhaps unsurprising that satisfaction with remuneration is down from 85 per cent to
73 per cent this year.
3%
12%
C-level
Mid management
Professional (non-managerial)
46%
There is no change in the board representation for European CIOs compared to figures
from 2009. Previously 46 per cent of European respondents sat on their operational
board while 54 per cent did not. This is unchanged in 2010.
Possibly as a result of a narrowing focus during the recession, European CIOs are
less global in outlook than in previous surveys. In 2009, 34 per cent of respondents
had a global remit compared to 28 per cent this year, a drop of 6 per cent. European
respondents are also less global in their scope of responsibility this year when compared
to U.S. respondents, 44 per cent of whom operate globally.
Technology leaders from the public sector and government departments remain an
important community and are boosted in numbers by stimulus spending packages.
Manufacturing has dropped from representing 10 per cent of the respondent
population in 2009 to 6 per cent today.
20%
Figure 25. Top industry sectors: Europe
16% 16%
15%
10%
8%
6% 6%
5% 5% 5%
5% 4% 4%
3% 3% 3%
0%
s
es
es
s
k
gy
e
Bu nme and
tic d
er
m
il
ice
in
tio
rin
ar
gis n
ta
vic
vic
h
lo
co
dr
lo rt a
nt
hc
Ot
v
c
Re
tu
no
r r
er
er
er
tru
le
ve to
d
alt
ac
Te
an
ls
ss
ls
ch
go ec
sp
ns
He
uf
ga
cia
es
te
od
cs
an
Co
an
Le
sin
an
Tr
Fo
bli
M
io
Fin
Pu
at
rm
fo
In
At the higher end of the budget categories, European CIOs are less represented than
their U.S. peers. While 13 per cent of the U.S. respondents operate a budget between
$25m and $50m only 10 per cent of European CIOs do. Nine per cent of U.S. CIOs are
responsible for a $50m+ budget compared to only six per cent in Europe.
At the very large budget level, twice as many U.S. CIOs operate a budget bigger than
$250m, 6 per cent compared to 3 per cent in Europe. And while 5 per cent of U.S.
respondents are in the billion dollar budget club only 2 per cent of Europeans have a
similar responsibility.
Sixty-four per cent of European respondents say the role of the CIO is becoming more
strategic. This is exactly the same as U.S. CIOs as well as CIOs in other regions that make
up the global average.
More importantly to European CIOs, the 64 per cent of respondents who see the CIO
role as becoming more strategic is a repeat of 2009’s response, which had stemmed a
three-year decline in perceived importance that is charted in Figure 26 below.
80% 76%
60% 57%
50%
40%
30%
20%
10%
0%
2006 2007 2008 2009 2010
Table 17. Top five key business issues for CIOs: Europe vs. U.S.
% prioritise % prioritise
Business issue EU U.S.
Increase operational efficiencies 75% 74%
Improve business processes 74% 62%
Cost saving 73% 77%
Innovation 37% 43%
Developing new products 32% 44%
The top five business issues for technology to address are the same in Europe and the
U.S., but the focus given to each differs slightly. It would appear that US CIOs remain
a little more cost-sensitive to business planning in 2010 compared to their European
peers. At 75 per cent the top issue for European CIOs is increasing operational
efficiencies. This compares to outright cost saving which is a priority for 77 per cent
of US CIOs.
More than half of European respondents, 56 per cent, believe their organisation is
suffering from a skills shortage, up 2 per cent from last year. While there is certainly a
growing awareness of a skills shortage in Europe, it is less pronounced than among the 62
per cent of U.S. CIOs who are currently concerned about a lack of skills. When it comes
to the impact on the organisation that a skills shortage will have, the U.S. and Europeans
differ again, albeit this time only marginally, as can been seen in Figure 27 overleaf.
50%
US
40%
Global
30%
26%
20%
20%
12% 12%
10% 10%
10%
Business analysis skills are in most demand by European CIOs, 46 per cent. Project
management ability is sought by 36 per cent of respondents and architecture skills by
34 per cent. The most significant difference in skill shortages is in IT strategy where 36
per cent of U.S. CIOs believe it is lacking in their organisation compared to only 25 per
cent of European leaders.
Managing relationships with other parts of the business remains the most important
skill for the IT team as a whole, identified by 65 per cent of European respondents. That
number is down slightly from 67 per cent last year.
50%
2010
40%
2009
29%
30% 26%
20% 16%
13%
10%
0%
Yes, targets reflect the need to innovate Yes, but no targets are set No, innovation expected only in business units
The U.S. undertakes more targeted innovation, 34 per cent versus 26 per cent in Europe.
However, when it comes to measuring successful innovation, 73 per cent of European
CIOs have seen success while only 69 per cent of U.S. respondents give the same view.
Higher investment levels can partly describe the more positive outlook European CIOs
have for their IT innovation activity. Knowing they are committing a sizeable chunk
of their IT budget to innovation projects may give these leaders a sense of successful
activity, even though they are undertaking innovation in a less targeted way than their
U.S. peers.
Table 18. ROI from innovation activity: Europe vs. U.S. vs. global average
The results in the table above suggest that while European CIOs may ‘feel’ they are
enjoying more success from innovation than their peers in other parts of the world, the
U.S. is actually achieving slightly better ROI from innovation activity.
Almost two thirds, 59 per cent, of European CIOs make collaborating with other
organisations to enhance the quality of products and services a top priority. In
comparison, U.S. respondents place speeding up the delivery of products and services
as their top innovation collaboration activity at 64 per cent.
The preferred collaboration partners for European CIOs remain suppliers, as it was last
year. Their popularity has grown in the past 12 months with 59 per cent of European
respondents working with suppliers this year compared to 54 per cent last year.
Customers are collaboration partners for just under one-third of European CIOs, 32
per cent.
For European CIOs, barriers to innovation collaboration are more significant this year.
30%
10%
10%
9%
7%
6%
5%
5%
0% Not being
Lack of agreed Resistance Physically Concerns Technology
behaviours among dispersed teams about security tools are able to find
for collaborating potential users ineffective the right people
With the exception of physically dispersed teams, all the barriers are more pronounced
this year than during the recession. Concerns about security have increased significantly
with 13 per cent now citing it as a major barrier. Almost one-third now feel that lacking
agreed behaviours for collaboration will limit or prevent future innovation collaboration
success.
As recession becomes recovery for many European CIOs, the main trigger for
innovation collaboration has become a changing business focus. Thirty-nine per cent
stated it was their own business focus that created the opportunity for collaboration
while one in five, 20 per cent, referred to changes in the market.
The budgetary environment has become one of the most influential factors in the drive
towards outsourcing and offshoring for European CIOs. After a period of innovation-led
outsourcing much of the activity today focuses on cost cutting.
Outsourcing remains a core strategy for many European respondents with 87 per cent
saying they will maintain or increase investment in outsourced activity this year. It
appears that European CIOs are bullish with 11 per cent investing more than 50 per
cent of their IT budget in outsourced activity compared with only 6 per cent of U.S.
respondents.
Thirty per cent of Europeans invest less than 6 per cent of their overall IT budgets in
outsourcing which is in line with 29 per cent of U.S. CIOs. Those who invest between 5
and 10 per cent of budget are the same in both regions at 22 per cent.
50%
40%
30%
22%
20%
9% 8%
10% 6%
1%
0%
t
e
en n
nc n
O
n
O
en
ur
pm io
na io
io
BP
BP
KP
t
e
t
tm
lo at
te cat
at
uc
HR
IT
ve lic
gr
ar
ain li
str
de app
m app
p
nt
fra
de
si
in
e
IT
ar
ar
m
IT
ftw
ftw
ste
Sy
So
So
While the largest group of European respondents, 37 per cent, state that accessing
skill sets not possessed by the internal IT team is their reason to outsource this year,
the need to reduce costs is never far from thought and was prioritised by 35 per cent
of European CIOs.
The outlook for offshore outsourced activity looks positive for the next 12 months.
Almost one-third, 29 per cent, indicate that they will increase their offshore activity this
year while a larger group, 62 per cent, will maintain their investment at current levels.
However, 9 per cent plan to reduce their offshore work this year either as projects
come to a close or as European CIOs choose to return some activities to an onshore
or in-house model.
When asked explicitly if they would consider relocating offshore projects back
to onshore providers to boost local economies, only 12 per cent said they would
consider it. This would suggest that the cost benefit of overseas locations remains very
important to European CIOs.
12%
Yes
No
88%
The reliability of offshore providers may affect the above decision over the coming
months and years. More than one-third of European respondents, 34 per cent, claim
that projects undertaken offshore fail to meet expectations. And while satisfaction
levels are met for 61 per cent of European CIOs, only a small 6 per cent have their
expectations exceeded.
Similar to U.S. respondents, the majority of European CIOs offshore their projects to
India. However, while 77 per cent of U.S. CIOs use India as a base only 62 per cent of
Europeans do. The proximity of low-cost centres in Eastern Europe will certainly be a
factor as 13 per cent of European CIOs base offshore projects there.
The UK remains a popular outsourcing hub for 13 per cent of European respondents
while U.S. decision makers prefer China by an 8 per cent to 3 per cent margin.
Similar to their U.S. peers, European CIOs are balancing 2010 with a continuation of
tight cost control (which includes further budget reductions in some cases) with more
aggressive activities added to capitalise on emerging growth opportunities. In the case
of the Europeans, both priorities were given prominence by 32 per cent of respondents.
Clearing the backlog of projects stalled by the recession will be a priority for one-fifth of
European CIOs, 21 per cent, while 16 per cent are planning to spend 2010 in a business
as usual mindset.
European CIOs also plan to use Software as a Service (SaaS) to enhance ROI in 2010.
4%
38%
For 29 per cent of European CIOs there will be no SaaS activity in 2010. For the
remaining 71 per cent, SaaS will play a role in their strategy but not necessarily a
significant one. A third of respondents will increase their activity, and within that
group 4 per cent plan to move to a mainly SaaS model. The remaining 38 per cent will
continue to use SaaS but at existing levels.
2010 will also see the role of cloud computing become more prominent for European
CIOs, but the decision to adopt a cloud computing platform will lag behind U.S. peers.
52%
48%
50%
40% Yes
40%
No
30%
20%
10%
0%
Europe US
In the next 12 months, 48 per cent of European respondents will consider adopting
a cloud computing platform compared to an overwhelming 60 per cent of U.S. CIOs.
Added flexibility was given as the reason why 61 per cent of European CIOs are
considering cloud computing while 56 per cent of European respondents also believe
the platform will add to other cost-saving initiatives in 2010.
When asked about their internal communication priorities for 2010, European and U.S.
CIOs expressed similar approaches with a higher dependence on face-to-face meetings
and existing company infrastructure. Seventy per cent will use a combination of the
company intranet and physical meetings while 60 per cent will use regular emails.
Blogs and social networks do not yet feature strongly in the internal communication
plans for European CIOs with only 18 per cent considering using a blog and 24 per cent
planning to communicate via social networks.
This is not particularly surprising considering the environment in which CIOs have been
operating. Looking forward, however, an increase in career churn is expected this year.
European CIOs themselves are indicating they are ready to move.
More than a quarter, 26 per cent, will be looking for their next career move in the next
12 months. This is in line with the global average, 25 per cent, and slightly higher than
the churn expected in the U.S., 19 per cent.
Within 24 months more than half of European CIOs, 51 per cent, expect the global
economy to have recovered sufficiently to attract them into a new role outside their
current organisation. The majority of European respondents are fulfilled in their current
role, and while 79 per cent say they are quite or very fulfilled with their job this is
unchanged from 2009 and down from highs of 84 per cent in 2006.
2010 2009
Very fulfilling 33% 33%
Quite fulfilling 46% 46%
Not very fulfilling 16% 17%
Not at all fulfilling 5% 4%
Thirty-eight per cent of European CIOs are seeking a fresh challenge from their next
role while almost one-quarter, 23 per cent, are looking for more involvement in business
strategy. A seat on the board is an ambition for 9 per cent while a better work-life
balance is only sought by seven per cent of European respondents.
Activity levels in seeking the next role remain depressed after the recession with one-
fifth of European respondents, 21 per cent, actively looking for the next career move.
A further 44 per cent would entertain a call from a head-hunter while another quarter,
27 per cent, are passively watching the market.
Base salaries for European CIOs are closely in line with the global average but lag behind
their U.S. peers at the most senior level.
Figure 34. Base salary: Europe vs. global av. vs. U.S.
36% 35% 35%
35% 33%
29%
30% 28%
27%
25% Europe
Global av.
19%
20%
16% US
14%
15% 13%
10%
5%
4%
5% 3%
1% 1% 1% 1%
0%
Less than $50,000 - $75,000 - $100,000 - $150,000 - More than
$50,000 $75,000 $100,000 $150,000 $200,000 $200,000
The majority of European respondents, 36 per cent, earn within the $100,000-$150,000
base salary range. A further 28 per cent enjoy base salaries between $150,000-$200,000.
What is clear, however, is that at the upper tiers the U.S. CIOs dominate the base salary
rankings. There are more than double the number of U.S. CIOs than Europeans in the
top salary bracket of $200,000+ per year.
Eleven per cent of European CIOs have taken a base salary cut while 63 per cent have
had their salaries frozen. This is in line with U.S. and global figures and considering the
base salary values in the previous figure, it suggests European salary inflation occurred
well before the recession.
Bonuses are enjoyed by 79 per cent of European CIOs. Almost one-third of bonuses, 29
per cent, amounts to between 10 per cent and 20 per cent of base salary. This is flat on
previous years. A contributory pension is offered to 74 per cent of European CIOs and
62 per cent benefit from a company car.
The recession has forced the elimination of bonuses for one-fifth, 20 per cent, of
European CIOs, while a further 34 per cent have seen bonuses reduced. This has had an
impact on compensation satisfaction with 75 per cent satisfied with their remuneration,
down 5 per cent from last year.
Finally, when asked if they would consider freezing or reducing their own remuneration
to help improve the financial stability of their organisation as it emerges from the
recession, 73 per cent said they would be prepared to do so. This is in line with U.S.
sentiment, 70 per cent, and the global trend, 72 per cent.
54 Harvey Nash CIO Survey 2010
5. European country and regional profiles
Belgium Skills
Regarding their own skills, Belgian CIOs are less focused on communication and
influencing skills, 54 per cent, compared to the global average of 78 per cent. They
are more intent on developing their strategy and planning abilities, which 68 per cent
believe will be enhanced by an MBA or similar.
The skills shortage is more pronounced in Belgium and its impact is felt stronger here
than in other regions. Figure 35 shows the level of concern. Sixty-seven per cent of
Belgian respondents said growth will probably be slowed by the shortage of skills this
year, compared to 54 per cent globally. Project management skills are most in demand
by Belgian organisations, 53 per cent, while architecture and business analysis are sought
by 43 per cent of respondents.
Figure 35. Skills shortage impacting growth: Belgium vs. global average
Yes No
80%
70%
67%
58%
60%
Yes
50% No
42%
40%
33%
30%
20%
10%
0%
Belgium Global
Only 7 per cent believe their innovation collaboration has been unsuccessful while 60
per cent have collaborated successfully to enhance the quality of product and services.
In line with global sentiment the main barrier to successful innovation collaboration is a
lack of agreed behaviours, referred to by 37 per cent of Belgian CIOs.
2010 priorities
Belgian CIOs are going to be more focused on cost cutting this year. Thirty-seven per The impact of the
cent will make it a priority compared to 32 per cent globally. The recession also has
pushed ROI on technology back between one and three years for more than a quarter global recession
of Belgian respondents, 26 per cent. However, focus will be given to SaaS as a means to is seen in the
return ROI quicker by 30 per cent of respondents, while 56 per cent of Belgian CIOs will
also turn to cloud computing to help. career churn of
Belgian CIOs
IT budgets, outsourcing and offshoring
With 73 per cent of Belgian respondents expecting frozen or declining IT budgets in
the forthcoming 12 months, it is not surprising that cost-effective outsourcing remains
important. Thirty per cent of Belgian CIOs will increase investment in outsourcing this
year while another 54 per cent will maintain investment.
Software application development remains the most popular outsourced resource for
another year by 76 per cent of Belgian respondents, with 54 per cent also outsourcing
application maintenance. Offshore IT work in Belgium is overwhelmingly sourced
to India, 82 per cent, and Eastern Europe, 18 per cent. However, Vietnam and the
Philippines are both emerging offshore hubs for Belgian CIOs.
FigureBelgium
36. Time expected to stay with
09 Belgium 10current employer: Belgium 2009 vs. 2010
40%
36% Belgium 2009
35%
35%
Belgium 2010
30%
25%
23% 23%
25% 22%
20%
14%
15% 12%
10%
5% 5%
5%
0%
Less than 1 year 1 - 2 years 2 - 5 years 5 - 10 years More than 10 years
The percentage of Belgian CIOs planning to leave their current employers within the
next 12 months has dropped 18 per cent while those planning to stay for up to two
years has risen by 20 per cent. This trend is not necessarily driven by dissatisfaction.
Eighty-eight per cent say they are fulfilled in their role. However, 78 per cent would
consider roles if they were presented to them.
Base salaries of Belgian CIOs have been affected by the recession with 64 per cent
experiencing a base salary freeze and 13 per cent accepting a base salary cut. Base
salary levels sit below the global average and remuneration satisfaction dropped 10 per
cent to 77 per cent this year. That said, 63 per cent would still be willing to consider
freezing or reducing their own remuneration to help improve the financial stability of
their organisation.
shortage Skills
The need to increase operational efficiency was rated the top priority by 90 per cent
of French CIOs, higher than the 75 per cent it received globally. As such, the skills in
demand to meet these objectives fall into two categories: IT strategy skills, 57 per cent,
and architecture skills, 43 per cent.
French respondents are less concerned about a skills shortage compared to their global
peers. Only 30 per cent of French CIOs believe their organisation’s growth will be
impeded by a skills shortage this year compared to 58 per cent globally, as is shown in
Figure 37 below.
Yes No
80%
70%
70%
58%
60%
Yes
50% No
42%
40%
30%
30%
20%
10%
0%
France Global Av.
2010 Priorities
Further cost reduction will be the highest priority in 2010 for the majority, 56 per cent, IT budgets remain
of French respondents. Global CIOs are more pessimistic about the impact of the
recession on IT projects than French CIOs. Only 11 per cent of French respondents under pressure in
believe ROI from projects will be delayed between one and three years compared to 22 France
per cent globally.
One reason for the greater optimism shown by French respondents for generating ROI in
2010 may be the openness with which they have embraced Software as a Service (SaaS)
and cloud computing. Fifty-six per cent of French respondents plan to undertake more
SaaS activity this year compared to 31 per cent globally. Similarly, cloud computing will
play a greater role for 78 per cent of French CIOs compared to 51 per cent globally.
Figure 38. Use of greater SaaS and cloud computing in 2010: France vs. global average
Yes No 78% France
80%
70%
Global av.
60% 56%
51%
50%
40% 31%
30%
20%
10%
0%
Saas Cloud Computing
Over one in five, 22 per cent, of French CIOs earn more than $200,000 in base salary
and a further 67 per cent earn more than $100,000. Base salary freezes have affected
more French respondents than the global average, 89 per cent compared to 62 per cent.
However, salary cuts are far higher in regions other than France.
In a reversal of the global trend, only 22 per cent of French CIOs would consider
freezing or reducing their remuneration to help improve the financial stability of their
organisation compared to 72 per cent of CIOs globally.
Figure 39. Strategic influence of CIO in 2010: Germany vs. global average
90%
Yes No
83%
80%
70% 64%
60%
50%
40%
30%
20%
10%
0%
Germany Global av.
Skills
Communication and influencing skills are deemed essential for career progression by
89 per cent of German respondents, while leadership skills are important to 75 per cent.
Executive education, such as an MBA, will also advance career progression and enhance
strategy and planning skills according to 78% German CIOs.
A skills shortage is noted by 62 per cent of German CIOs, in line with the global average
of 58 per cent. The impact of this shortage could significantly impact the growth of 40
per cent of German organisations according to respondents. Architecture skills are in
demand by 71 per cent of German CIOs, far higher than the global average of 35 per
cent.
2010 priorities
German CIOs appear to be more aggressively looking to invest, innovate and overtake German CIOs
weakened competitors in 2010. Fifty per cent are adopting this approach compared to
only 31 per cent globally. appear to be
more aggressively
The use of Software as a Service (SaaS) will be on the agenda of 83 per cent of German
CIOs in the coming 12 months, compared to 75 per cent globally. However, the use of looking to invest
cloud computing has German respondents split evenly with 50 per cent saying they will in 2010
consider the platform in future while half have other priorities.
Software application development and software application maintenance are the most
popular processes to outsource and 75 per cent of respondents plan to offshore more
of this activity in 2010. In line with global trends, India remains the offshore destination
of choice but as in other regions its dominance is waning with Eastern Europe now used
by almost half, 49 per cent, of German CIOs. This is significantly more than the global
average of 11 per cent and the European average of 13 per cent.
German CIOs occupy the highest base salary brackets, as shown in Figure 40 below.
Despite 60 per cent of respondents experiencing a pay freeze last year, there is
also a greater willingness from German CIOs to consider freezing or reducing their
remuneration to help improve the financial stability of their organisation, 80 per cent
compared to 72 per cent globally.
Germany
Figure Global
40. Upper bracket Av levels: Germany vs. global average
remuneration
50%
41%
39%
40%
34% Germany
29% Global av.
30%
20%
19%
20%
10%
0%
$100,000 - $150,000 $150,000 - $200,000 More than $200,000
The skills shortage emphasised by 58 per cent of global CIOs is only affecting 45 per cent
of Irish respondents, suggesting the recession has reduced the demand and increased
the supply of skilled technology people.
Collaboration to achieve innovation success is also a main element of the Irish CIOs
strategy. In line with their global peers, 58 per cent collaborate to speed up the
development and delivery of products and services while 51 per cent seek to improve
resource utilisation. In a change to last year, the main barrier to innovation collaboration
is now the lack of agreed behaviours for collaborating rather than the physical dispersion
of teams.
25%
20%
17%
14%
15%
13%
12%
10% 8%
5%
0%
at rs
ct ols
ity
us ng
am d
eo ind
or iou
te rse
g
ur
ffe to
ive
ial o
s
s
ple
in
tp of
er
nt am
lab av
ec
ne y
sp
igh le t
e i og
ol eh
ts
te ce
di
ar nol
rc b
ou
er b
po tan
lly
th ng a
fo eed
ab
ch
ica
sis
Te
r
ns
i
ag
ys
be
Re
er
Ph
of
t
nc
No
ck
Co
La
2010 priorities
Irish CIOs are more bullish about 2010. Thirty-eight per cent are actively looking to Irish CIOs are more
invest, innovate and overtake weakened competitors compared with only 31 per cent
globally. However, 27 per cent of Irish respondents believe ROI in technology projects bullish about 2010
will be delayed between one and three years because of the recession. The global
average for a similar delay is 22 per cent. Software as a Service (SaaS) is seen as one
option to recover lost ROI quicker but is only a priority for 26 per cent of Irish CIOs
compared to 35 per cent globally.
Irish respondents undertake their outsourced activity quite differently compared to their
global peers. There is less dependence on India, although it is still the top destination
by some margin. A greater emphasis is placed on Eastern Europe and a stronger balance
exists between an onshore, Irish-based, outsourcing model and offshore activity. The
U.S., 8 per cent, and Vietnam, 5 per cent, are also growing offshore outsourcing hubs
for Irish CIOs.
Ireland Global Av.
80% Figure 42. Top four offshore outsourcing destinations: Ireland vs. global average
70% 66%
60%
52% Ireland
40%
30%
17%
20% 15%
11% 10% 10%
10%
3%
0%
India Eastern Europe Ireland UK
Remuneration for Irish CIOs remains fairly healthy despite the recession. Seventy-five per
cent earn a base salary of over $100,000 and 7 per cent earn over $200,000. However,
the recession has impacted remuneration growth in Ireland. Thirty-five per cent had
base salary cuts this year compared to only 11 per cent of global CIOs. Despite base
salary cuts, 72 per cent of Irish CIOs would consider an additional freeze or reduction
to their own remuneration to help improve the financial stability of their organisation.
respondents Fifty-five per cent of Dutch respondents have a seat on the board compared to a
significantly lower global average of 42 per cent. Their perception of growing strategic
authority is also strong with 72 per cent agreeing that the role of the CIO is becoming
more influential. That number is notably higher than the global average of 64 per cent.
Skills
Seventy-three per cent of Dutch respondents believe communication and influencing
skills are essential to advancement. Fifty-seven per cent of local CIOs say they are
concerned about a wider skills shortage. This is down 4 per cent on last year’s findings,
which suggests the supply of skilled labour in the Netherlands has eased slightly due to
the recession.
Almost two-thirds, 65 per cent, of those who identified a skills shortage believe it will
have a material impact on organisational growth this year. The skills most in demand in
the Netherlands are very closely aligned to global averages. Business analysis is the top
priority for the Dutch at 45 per cent and globally at 44 per cent. Architecture skills are
needed by 35 per cent of respondents locally and globally.
Netherlands Global Av
80%
Figure 43. Innovation collaboration partners: Netherlands vs. global average
68%
70%
60% 56%
Netherlands
0%
Suppliers Customers Pofessional None Competitors Other
services firms
2010 priorities
Priorities for 2010 reflect a sharp contrast with global trends. Figure 44 below suggests Priorities for 2010
a more cautious strategy for Dutch CIOs this year, focusing on further cost cutting and
clearing stalled technology projects rather than investing in overtaking competitors reflect a sharp
weakened by recession. contrast with
Figure 44. 2010 technology priorities: Netherlands vs. global average global trends
Netherlands Global Av
40%
40% Netherlands
25% 21%
20%
15% 15% 15%
15%
10%
5%
0%
pe en te
ive h
ec g
ct ost
at it
oj lo
m ak va
tit ed
iti w
s
ts
n
pr ck
du c
co we nno
io
in al
s
re her
of a ba
or
w su
ke , i
rt
ne s u
ta st
Fu
er ve
al s a
rin
ov In
im es
ea
in in
Cl
m us
B
d
an
Almost one-third of Dutch CIOs, 33 per cent, plan to adopt more Software as a Service
(SaaS) this year. Forty-four per cent are looking to add value with cloud computing
solutions, which is 10 per cent lower than the global average.
Offshore partners are meeting or exceeding the expectations of more than two-thirds,
67 per cent, of CIOs from the Netherlands. Aside from India, Eastern Europe is again
a popular destination to offshore. Eighteen per cent of Dutch CIOs send outsourcing
projects to Eastern Europe, which is higher than the 11 per cent global average.
Eighty-nine per cent of Dutch respondents have a base salary of more than $100,000
per annum compared with 82 per cent globally. Sixty-four per cent experienced salary
freezes last year and 4 per cent had their base salaries cut, but this is less than the global
average. Finally, a large majority, 79 per cent, said they would consider an additional
freeze or reduction to their own remuneration to help improve the financial stability of
their organisation.
and influencing More Scandinavian CIOs sit on the board, 58 per cent compared to 42 per cent globally.
They also have positive expectations for the future role of the CIO. Eighty per cent say
skills are key to
they feel it will become more strategic this year.
advancement
Skills
Scandinavian CIOs believe communication and influencing skills are key to advancement,
which is consistent with their global peers. However, local respondents place less
emphasis on these skills with only 62 per cent deeming them ‘essential’ compared to 78
per cent globally.
Seventy-two per cent of Scandinavian CIOs say they suffer from a skills shortage on their
technology team, which is far higher than the global average of 58 per cent. The skills
shortage also takes a different format with more emphasis on architecture and business
analysis in Scandinavia and less on business relationship management, development
and security, as show in Figure 45 below.
Scandinavia Global Av
80%
38% 37%
40% 35%
31%
30%
27%28% 27%
22% 21% 23%
21%
20% 16%
14%
11%
8%
10%
0%
en e
y
em hip
t
ity
is
e
ng
en
en
em rvic
eg
ur
lys
ur
sti
ag ons
t
em
pm
ct
t
at
en
na
Se
c
Te
ite
str
Se
ag
lo
ti
sa
ch
ela
ve
IT
an
es
ag
Ar
De
sr
tm
sin
an
an
es
m
Bu
jec
m
in
s
o
Bu
Pr
2010 priorities
The top priority demanding focus in 2010 for Scandinavian CIOs will be clearing the The top priority
backlog of recession stalled projects, stated by 37 per cent. Twenty-five per cent of
Scandinavian CIOs have technology projects where ROI has been delayed by one to in 2010 will be
three years because of the recession. This number is marginally higher than the global clearing the backlog
trend of 22 per cent.
of recession stalled
New platforms and techniques that are seen to encourage greater ROI will also be projects
deployed by Scandinavian CIOs this year. Software as a Service (SaaS) will see more
use from 42 per cent of local respondents, higher than the 35 per cent global trend.
However, cloud computing will receive less focus from Scandinavian CIOs in 2010
compared to other regions, see Figure 46 below.
Figure 46. Greater cloud computing role in 2010: Scandinavia vs. global average
62%
60%
51% Scandinavia
49%
50% Global av.
38%
40%
30%
20%
10%
0%
Yes No
Part of this satisfaction comes from excellent remuneration. Fifty-eight per cent of
Scandinavian CIOs earn a base salary of more than $150,000 versus a global average of
48 per cent. Additionally, only 2 per cent of local respondents saw base salary cuts during
the recession compared to 11 per cent globally. However, 57 per cent of Scandinavian
CIOs did see a salary freeze last year.
Skills
Respondents from Switzerland place a higher value on leadership skills. Seventy-eight
per cent list it as an essential skill versus 63 per cent for communication and influencing
ability. Seventy-one per cent of CIOs see greater influence from executive education,
such as an MBA, in delivering better strategy and planning skills compared to 59 per
cent globally.
Almost three-quarters of Swiss CIOs, 71 per cent, feel their organisation lacks key
skills compared to 58 per cent globally. Business analysis, 51 per cent, and project
management, 43 per cent, are felt to be lacking by most, and 65 per cent feel the lack of
skills will impact their business growth this year.
Figure 47. Top three innovation objectives: Switzerland 2009/2010 vs. 2010 global average
80%
77%
70%
60%
57% 58%
60% 55% 53%
53% 53% Switzerland 2009
30%
20%
10%
0%
at rce
rv o t
ice f
se r y en
rv o
ice f
s
se ity
ilis ou
d ive m
io
s
an el op
d al
ut res
an qu
ts d d el
e
uc an dev
ts ce
ov
uc an
pr
up
Im
od nh
d-
pr E
ee
Sp
od
pr
2010 priorities
As the global recession eases and most economies emerge into a tentative recovery Job and
35 per cent of Swiss respondents are focused on clearing the backlog of technology
projects put on hold during the last year. A further 35 per cent are reducing costs remuneration
further this year while only 20 per cent will actively look to invest, innovate and overtake satisfaction
weakened competitors.
are declining in
When considering emerging technology models for 2010, a lower proportion will Switzerland
consider embracing Software as a Service (SaaS) opportunities. Only 26 per cent will
deliver more products or services via this route in 2010 compared with a 35 per cent
global average. Cloud computing faces similar scepticism with only 36 per cent of Swiss
CIOs considering a wider approach for the model compared to 51 per cent of global
peers.
Figure 48. Level of career fulfilment: Switzerland 2009/2010 vs. 2010 global average
100%
90%
75% 76%
80%
60%
40%
20%
0%
Switzerland 2009 Switzerland 2010 Global Av.
Growing dissatisfaction does not bode well for future career stability in Switzerland with
41 per cent looking to move jobs in the next 24 months. This restlessness is despite the
Swiss CIO community being one of the best paid in the world. Sixty-five per cent have a
base salary of more than $150,000 a year compared to 48 per cent globally.
Skills
UK CIOs value communication and influencing skills more than any other ability.
Eighty-two per cent believe they are essential for advancement at the senior level.
UK respondents are also willing to undertake executive education, such as an MBA, to
enhance strategy and planning skills. Of the respondents, 57 per cent said this would
add value.
61% 60%
58%
60% 55% 54% 53% 53% UK
51%
49%
50% Global av.
42%
40%
32% 32%
30%
20%
10%
0%
tio ty
at rce
t
ice d
ice f
hi d
len
rv o
rv an
va ivi
ns an
n
n
s
s
ps
ilis ou
se ity
io
no at
ta
se t
tio er
d en
ut res
d al
in re
in
ela om
an qu
an m
d c
ta
e
an rove
ts lop
r r st
ov
re
ts ce
lie cu
pr
uc an
d
uc ve
an
Im
pp en
od nh
Im
od e
pr p d
ct
su gth
pr E
tra
of -u
At
re
y d
er ee
St
liv Sp
de
2010 priorities
A more proactive stance is being adopted for 2010 by UK CIOs. Thirty-seven per cent A more proactive
of UK respondents are actively looking to invest, innovate and overtake weakened
competitors this year compared to only 31 per cent globally. Two of the tools they will stance is being
use to achieve this are Software as a Service (SaaS), which will see increasing use by adopted by UK
35 per cent of UK CIOs, and cloud computing, which 51 per cent will use to increase
competitive advantage. CIOs in 2010
Global Av
Figure 50. CIO career churn: UK vs. global average
UK
35% 32%
31% UK
29%
30% 27%
25% Global av.
25% 23%
20%
15% 12%
8% 8%
10%
5%
5%
0%
Less than 1 year 1 - 2 years 2 - 5 years 5 - 10 years More than 10 years
Forty per cent of UK CIOs earn more than $150,000 base salary, which is 8 per cent
below the global average. This difference points to one possible reason for greater
remuneration dissatisfaction and higher than expected job churn predictions in the UK.
However, despite a swelling demand for more money, 74 per cent of UK CIOs said they
would consider freezing or reducing their remuneration in 2010 to help improve the
financial stability of their organisation as it emerges from the recession, which is 2 per
cent higher than the global average.
There is a lot of hype around cloud computing at the start For a number of years now, the satisfaction with traditional
of the new decade, which has excitement for the cost saving outsourcing models and traditional outsourcing hubs has
opportunities it presents, but caution in overcoming many of been declining. We evidenced this again this year. The new
the technical, service and security barriers. The survey reveals models outlined above, SaaS and cloud computing, will have
that CIOs responses are split. Overall half of CIOs globally see an impact on the change, but so too will emerging locations
if as the future and will adopt in their organisation. The other which can compete with more traditional providers now that
half, have no plans during 2010. access to these regions and their low cost but high value
talent is available.
In what is a significant shift, cloud computing has created new
business models built on the economies of scale of delivering India’s dominance in offshore outsourcing is waning and
commoditized services to many different customers enabled the pace of decline is growing, although it still owns much
by the Internet. On the demand side organizations can buy of the market. The rise of Eastern Europe as a preferred hub,
IT services by use rather than owning the assets themselves. especially for European-based CIOs is undeniable. More than
All great in theory and some organisations have dabbled one in ten global CIOs now undertake offshore activity in
with by using Cloud services such as email services, CRM, Eastern Europe. That figure is significantly higher within those
development and test environments, but only a few, usually European countries closest to the region.
smaller organisations have moved their core business
applications to the Cloud. Other beneficiaries of this trend are hubs such as Vietnam,
the Philippines and even China. A greater mix of onshore
Substantive issues still have to be overcome, such as seamless and offshore resources is also expected in coming years
integration with legacy solutions, regulatory restrictions on in line with the evolution of SaaS and cloud computing. In
data storage, information security and maturity of service this environment of multiple outsourcing partners operating
delivered to customers. These objections have been well from a range of different hubs, the effective management of
flagged, but suppliers and customers developing solutions more complex and disparate outsourcing activity is going to
that will overcome these issues, such as virtual private Cloud become even more important to CIOs.
solutions.
For both CIOs and their outsourcing providers, the key
It is perhaps no surprise that as cloud is a strategic choice statistic that continues to cause concern is a growing level of
for organisations, the response is currently split. However, dissatisfaction with project management standards, despite
we expect cloud computing will grow in important over the the overall popularity of the offshore outsourcing model.
coming years as CIOs are required to take a more aggressive
approach to cost savings and efficiency drives while losing Skills for growth
none of the required organisational flexibility and growth We stated last year that when economic times are at their
potential. worst, organisations need their top talent working at their
best. The skills of the CIO and their technology team were
Outsourcing maturity tested throughout the recession. Now that most economies
An important message from the survey this year is that, with are recovering, the need for skills has not changed but their
a few exceptions, there has been very little change. However, utilisation and type of skills has.
this in itself is very significant as it demonstrates that the
outsourcing industry has now reached a stable level of Communication and influencing skills remain the most
maturity. important skills for advancement in a post-recession world.
However, leadership skills are certainly more recognised than
Outsourcing investment survived the budgetary pressures in previous years as a result of managing the technology
brought by the recession, and almost 90 per cent of CIOs will function during a very difficult environment.
be increasing or maintaining their investment this year. The
recession increased the popularity of the offshore model. The favoured communication styles of CIOs have also
However, currents below the surface may indicate that evolved as a result of the recession. More emphasis is being
changes are emerging in the outsourcing demands expressed given to face-to-face and other more personal mediums,
by many CIOs. especially for internal use. Web-based social networks are
evolving, and, while not typically being used by CIOs for We certainly see a more complex and challenging environment
internal communications, business-focused networks such as ahead for the CIO. The recession may have been successfully
LinkedIn are showing significant potential as mechanisms for negotiated by many, but the economic landscape has been
knowledge exchange and collaboration. changed for ever. Those CIOs who recognise this first, and
who are able to identify and pursue technology trends in
The further development of cloud-based solutions, many of emerging markets, will be the ones to prosper most in the next
which will be provided via outsourced arrangements, is also growth cycle. Those who can’t, or won’t, accept that the world
creating the need for CIOs to have enhanced commercial has changed run the risk of being left behind.
understanding of the market and a heightened awareness
of managing a multi-source economy of supply. Therefore Salary sensitivity
as well as being a great leader of their team, the CIO needs The vast majority of global respondents experienced a salary
to be a far more informed buyer in the emerging world. The freeze in 2009 with about one in ten seeing their salary cut.
individual cannot possibly span all of the aspects, which has Conditions are improving in 2010 but most CIOs are realistic
great implications on the nature and scope of the future IT about the need to manage cost within a fragile economic
organisation a CIO designs and manages. environment. In fact almost three-quarters of respondents
say they would consider freezing or cutting their own salary
Formal executive education, such as an MBA, is growing in in 2010 to improve the financial stability of their organisation.
popularity among the CIO community. Many CIOs used the
recession to explore adding to their skills with almost two- However, very real differences in remuneration have emerged
thirds believing an MBA would improve their strategy and during this research which potentially risk upsetting the
planning ability. current harmony between CIOs and their employers.
In 2010 the technology skills shortage is also returning to Talent is global in the 21st century economy and CIOs in
prominence. Globally the demand for skills has returned with Belgium and Ireland who are struggling to retain parity in
hot spots identified in Scandinavia, Switzerland, the U.S., the compensation could be forgiven for looking enviously at
Netherlands, Belgium and Germany. In line with their more the remuneration enjoyed by their U.S. and German peers.
sluggish economic recovery, the UK and France appear to be Overall job satisfaction has been one of the casualties of
less severely impacted by the skills shortages. the recession and is down 4 per cent this year, and worse in
selected countries.
As growth returns, we expect to see the demand for skills
continue to rise across Europe and the U.S. as organisations The implications are twofold. Firstly the CIOs themselves may
return to investing for the future. However, we would not seek to fulfil their career ambition elsewhere leaving their
be surprised if highly skilled individuals in these regions also organisations vulnerable, and secondly motivating a highly
began looking further afield to high-growth markets in Asia skilled technology team while not fulfilled yourself, could have
for their next career opportunity, leaving a greater skills gap a negative impact on the 2nd and 3rd tier leaders who report
at home. to the CIO.
The rise of the CIO Although CIOs remain cautious about moving jobs due to
The CIOs reward for their recession-busting performance the wider economic fragility, the risk of high-level departures
seems to be a stronger strategic voice and, in many cases, a grows. With the widening economic gap between a fast-
seat on the operational board. The strategic focus of the CIO growing East and indebted West, it is not unrealistic to
is growing too with almost three-quarters of respondents to believe that ambitious CIOs will look at China and other Asian
the survey foreseeing a greater role in strategy decisions in countries as a way to fast-track their career and maximise
2010. their earnings.
However, career development signals for CIOs are not all This would certainly be a net loss to organisations in Europe
positive. Careers were certainly stunted by the recession and and the U.S. which could lose the skills that helped bring them
CIOs are now more wary about moving to their next role until through the recession. However, for future CIOs currently in
the economic environment stabilises further. the 2nd or 3rd tier of technology management this could