63% of leading Irish financial services CIOs and IT decision makers expect their budgets will rise

IT budgets to rise as demand for staff increases

IT decision makers are expected to have higher budgets over the next few years, as the demand for IT staff increases.

Nearly two thirds (63 per cent) of leading Irish financial services CIOs and IT decision makers expect their budgets will increase within three years, according to research from Fujitsu.

Meanwhile, the demand for IT staff increased in June. Data published by KPMG and REC shows that both permanent and temporary workers saw ‘marked rates of expansion’ in available job vacancies.The IT category posted in fourth place out of nine in the demand for staff ‘league table’.

The index measuring demand for permanent IT staff came in at 66.9 during the latest survey period. Although down from 67.6 in May, to its lowest level in eight months, the latest reading was still indicative of a strong rate of growth that was slightly above the UK average (66.6). 

The temp staff index posted 63.8, up from 63.2 in May. That was its highest reading since February, albeit remaining below the national average for short-term workers (65.7). Temporary IT staff posted in fifth place out of nine in the demand for staff rankings during the latest month. 

Heath Jackson, partner in the CIO Advisory practice at KPMG, said: "With both permanent and temporary workers seeing an expansion in available job vacancies, it seems that employers are ready to ‘splash the cash’ in what appears to be an attempt to lure skilled staff from competitors. Yet despite offering starting salaries at a rate that has not been seen during the survey’s 17 year lifetime, it is clear that candidates are not easily swayed. 

“Employers need to bear in mind that cash is just one element of a rewards package and today’s savvy employees are looking at a broader range of benefits when they choose their employer. Businesses will have to come up with increasingly inventive rewards packages to attract and retain the best talent."

Elsewhere, Fujitsu’s IT budget research, which included areas of financial services such as retail banking, investment banking and insurance, also listed security as the overriding concern of CIOs and IT decision makers. 67 per cent of those asked identified it as the reason why cloud computing is not an enabler for change in their organisation.

Other notable data from the Fujitsu research shows that mobile solutions are not a priority for Irish CIOs and IT decision makers. However, 60 per cent believe that being involved in mobile offerings provides a better competitive position. Security was again highlighted as an issue, as 37 per cent of participants believed it was a barrier to deploying a successful mobile offering.

Regina Moran, CEO of Fujitsu Ireland, said: “The research reflects both the optimism and concerns of CIOs whose function and role within Irish business is evolving. With concerns such as security and the role of the cloud an ongoing issue, it’s important that companies and their CIOs are supported to achieve a return on investment."

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