PARSIPPANY, N.J., Dec. 13, 2005 (PRIMEZONE) -- A new breed of chief information officer (CIO) is emerging, and Information Technology (IT) budgets are on the rise, according to the new Harvey Nash U.S. CIO 2005/2006 Survey released today.
Commissioned by Harvey Nash Group plc (HN), a global recruitment and talent solutions firm, and sponsored by PricewaterhouseCoopers LLP (PwC), the survey profiles U.S. CIOs and the most pressing issues they face. For five years, HN and PwC have compiled and presented annual statistics on CIOs in the United Kingdom (U.K.). This year marks the first time the two collaborated to profile the U.S. marketplace.
While similarities abound among CIOs globally, differences also surfaced. In the U.S., CIOs reported that:
-- IT budgets are growing as pent up demand is released, with
25 percent of respondents seeing an increase between 10
and 20 percent, and 13 percent seeing an increase over
20 percent.
-- Business and career goals are converging to create new
opportunities for CIOs who desire participation in their
company's strategic planning processes.
-- Security concerns rank high for U.S. CIOs compared to their
U.K. peers, and
-- Outsourcing of IT services is a hot topic for U.S. CIOs,
with almost all respondents indicating that they have used
outsourcing, and 38 percent of respondents projecting
growth in outsourcing budgets.
Reducing costs was the primary reason for companies choosing to outsource, and approximately 10 percent of respondents said they contract with resources outside the U.S., termed "offshoring."
When questioned about the quality of outsourcing, findings varied depending on the type of service being contracted. Strong opinions surfaced regarding the appropriate functions to outsource, indicating an area where caution and strategic decision making is critically important.
"Outsourcing and offshoring are here to stay," said Harvey Nash U.S. President Robert J. Miano. "The challenge for CIOs is in evaluating the outsourcing options, and no silver bullet exists. Trusting an outside provider with internal business responsibilities demands a high degree of confidence in client service and performance. These decisions must align with and support the business needs of the company."
According to PricewaterhouseCoopers Advisory partner Phil Bloodworth, "In order for the CIO to play a more strategic role in the business, it is imperative that the IT organization keep pace with business strategies and align IT initiatives directly to business objectives. Successful IT leaders are keeping up with advances in technology, but they are also focused on the business trends their companies face. Increasingly they describe themselves as business people first, technology experts second."
Methodology
In August and September 2005, Harvey Nash U.S. surveyed IT executives via e-mail. Seventy-five respondents completed a 61-question survey in its entirety. Respondents included IT executives and CIOs in companies located primarily in the eight major markets and regions served by Harvey Nash, including Stamford, CT; Chicago, IL; Denver, CO; Parsippany, NJ; New York, NY; San Francisco, CA; Seattle, WA; and Tampa, FL. Most respondents had revenues greater than $50 million. Harvey Nash used a list from Harte-Hanks, Inc. of 3,950 unique e-mail addresses at 2,655 sites.
For a copy of the Harvey Nash CIO 2005/2006 Survey, please visit the Harvey Nash or PricewaterhouseCoopers Web sites at www.harveynash.com/ciosurvey05 or www.pwc.com/us/ite. Full print editions may be requested online.
About Harvey Nash
Harvey Nash Group, plc., is a global recruitment and talent solutions company with more than 25 offices worldwide and operations in Europe, Asia and the United States. Founded in 1988 and traded on the London Stock Exchange since 1997, Harvey Nash provides businesses with executive search solutions, IT talent and services and a full range of finance recruitment solutions. To learn more, please visit www.harveynashusa.com.
About PricewaterhouseCoopers
PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 130,000 people in 148 countries work collaboratively using connected thinking to develop fresh perspectives and practical advice.
"PricewaterhouseCoopers" refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.
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