IT and Business Execs Seen Proactively Collaborating to Minimize Impact of Downturn

Orlando — November 21, 2008 — IT and business executives are proactively working together to anticipate initiatives that should be carried out to minimize the overall impact of the economic downturn, according to a survey commissioned by the Society for Information Management and completed in June.

"The annual SIM survey provides important insights demonstrating that the overall state of IT remains very strong," said Jerry Luftman, SIM vice president for academic affairs and professor and associate dean at the Stevens Institute.

While the survey was taken before the recent financial developments, Luftman believes that the results overall are very positive for the IT industry.

"With all of the concern regarding our economy, it appears as though IT and business executives are working closely together to ensure they are well prepared," Luftman said. "Budget and headcount forecasts remained strong, despite the fact that economic conditions were weakening at the time the survey was taken."

Luftman says the SIM study confirms that business leaders continue to view IT as an important strategic partner and understand that it plays an important role in growing organizations, even in times of economic distress.

More than three-hundred respondents, primarily senior IT leaders within SIM's membership base, participated, representing data from nearly three-hundred companies. The results showed that:

  • 44 percent projected that their 2009 budgets will increase from 2008
  • 43 percent estimated they will have a greater headcount in 2009 compared to 2008
  • 75 percent projected IT staff salaries will increase in 2009
  • An average of 5.2 percent of IT budgets is anticipated to be spent on outsourcing (a 2 percent increase from 2008)
  • 52.5 percent reported that their 2008 turnover rate was less than 5 percent.

  • Relationship management with business
  • Relationship management with IT staff
  • Strategy
  • IT Governance
  • Operations (greater than 80 percent non-technical)

  • Ethics and morals
  • Critical thinking/problem solving
  • Collaboration; teams
  • Problem solving
  • Communication: oral