Companies will be hiring more internal staff in business-centric functions to help on business intelligence projects next year.
spending in 2011 operating budgets is expected to rise at a median range of 3.3
percent-the first increase in three years-according to research published by Washington,
D.C.-based benchmarking analyst firm Corporate Executive Board. While 60
percent of that budget will be spent on labor-either internal IT employees or
contractors and outsourced labor-only a modest 1 percent increase in staffing
percent of companies interviewed in the research are reported to be increasing
internal staff next year, with 17 percent reporting there will be a decrease in
internal staff. Twenty-three percent of companies reported an increase in
contractors, while 40 percent are decreasing contract staff. About 40 percent
are keeping contract budgets flat.
"As shown in the budget data, over half of technology enablement
opportunities in the business areas that drive growth-innovation, marketing,
sales, customer service-relate to data analytics, collaboration or the customer
interface," Shvetank Shah, executive director of the Corporate Executive
Board's Information Technology practice, told eWEEK. "At the heart of each
of these is the need to capture, integrate and interpret information, both
structured and unstructured."
services such as data center management, server support, and QA and application
testing functions are increasingly moving away from internal IT staffs. The
most stable functions within IT include application development, application
maintenance and networking. The areas that are growing within internal IT staff
include more business-centric functions, such as project management, strategic
planning and enterprise architecture.
intelligence is one area of IT expected to gain ground in 2011 and away from
creating automated functions like those found in ERP systems. Why is that?
"Most Fortune 500 companies have gone through their first or second
waves of ERP and have automated the structured processes that lend themselves
to reasonably simple business process mapping," said Shah. "In 2011,
businesses will be navigating through continued macroeconomic uncertainty, with
constraints on capital availability, customer fickleness and broad employee
through this time means leaders will need to simultaneously be bold in some
areas and dare to be "adequate" in others. Pulling off this
balancing act will require even richer analytics and data-driven insight to
supplement executive intuition.
four largest industries to have operational budget increases in the 6 to 7
percent range are retail, software/IT services, pharmaceuticals and energy.
Hardware and electronics, restaurant and hospitality services, utilities, and
financial services are increasing in the 3 to 5 percent range. Government,
public sector and banking industries are the three industries that will remain
the most flat next year.