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Re-evaluating IT Spending Estimates for 2016

IT projects Re-evaluating IT Spending Estimates for 2016 A crucial aspect of the TEKsystems report is a significant decline in the number of IT organizations reporting they have confidence in their ability to launch new projects. State of IT Budgets At the midyear mark, 48% of IT organizations report an increase in budget, vs. 37% […]

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Michael Vizard

Jul 26, 2016

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IT projects

Re-evaluating IT Spending Estimates for 2016

A crucial aspect of the TEKsystems report is a significant decline in the number of IT organizations reporting they have confidence in their ability to launch new projects.

State of IT Budgets

At the midyear mark, 48% of IT organizations report an increase in budget, vs. 37% that forecast an increase six months earlier. At the same time, only 12% expected a decline. In reality, 25% are now reporting a decline in spending. Of those reporting an increase, 17% say that increase exceeded 10% of the forecasted budget.

State of IT Confidence

At the midyear mark, 81% reported they are confident in their ability to meet demands on IT. That’s up 13 points from 68% six months earlier, but only 20% say they are now extremely confident, vs. 31% late last year.

Core IT vs. Business Demands

A full 87% say they are confident in their ability to meet core IT needs, up 12 points from the 75% reported late last year. Three-quarters (75%) also say they are confident in their ability to meet business demands, up 15 points from the 60% reported six months earlier.

New IT Initiatives Remain a Challenge

Only 39% are confident in their ability to launch a new initiative, a 15% drop from the 54% who said they were confident in their ability at the beginning of the year. Only 5% say they are extremely confident when it comes to new IT initiatives.

Technologies With Biggest 2016 Impact

Security continues to be a key IT priority; 45% cited IT security as having the biggest impact in the first half. Mobility (16%) and cloud computing (8%) came in second and third, followed by data center consolidation, ERP applications and virtualization/software-defined networking, all tied at 6%.

Biggest Areas of Talent Shortage

IT architects now hold the top slot at 52%, usurping programmers that had been previously cited to be the top talent issue, cited by 65%. In reality, developers fell to second place, at 51%, followed by project managers (43%), software engineers (40%) and big data analytics specialists (39%).

Hiring Full-Time Employees

Nearly half (48%) say the hiring of full-time employees increased, vs. 43% that forecast it would increase. Another 16% said hiring of full-time employees declined.

Reliance on Contractors

33% said reliance on contingent employees increased, vs. 41% who said they expected this to increase at the beginning of the year. Only 5% said hiring of contingent employees rose more than 10%.

Michael Vizard

Michael Vizard is a seasoned IT journalist, with nearly 30 years of experience writing and editing about enterprise IT issues. He is a writer for publications including Programmableweb, IT Business Edge, CIOinsight, Channel Insider and UBM Tech. He formerly was editorial director for Ziff-Davis Enterprise, where he launched the company’s custom content division, and has also served as editor in chief for CRN and InfoWorld. He also has held editorial positions at PC Week, Computerworld and Digital Review.

Re-evaluating IT Spending Estimates for 2016

Michael Vizard

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