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Widespread IT staffing cuts this year, according to new survey

A new survey of some 200 IT executives across a dozen vertical markets by IT research firm Computer Economics found that 46% of respondents plan to reduce headcount this year, while 27% plan to increase headcount.

The report says healthcare and energy are faring better than other industries, with 60% of healthcare respondents and roughly half of energy and utility organizations reporting staffing increases. Retail, manufacturing and insurance will see the biggest declines, according to the report.

While capital purchases seem to be the most sensitive area for organizations with slashed IT budgets, operational expenditures are a murkier area. The question of staffing and how different organizations are addressing storage efficiency – through technology or operational improvements – seems to come down to organizational philosophy. I’ve talked to users during this economic downturn who say that their IT spending is going up because IT projects are being implemented to automate processes or cut down on spending elsewhere.

The Computer Economics report identifies finance as one industry where this phenomenon is taking place. “Certain sectors, however, are showing positive growth in their 2009/2010 IT operational budgets. These sectors include banking and finance at 4.9%, healthcare providers at 4.7%, professional and technical service firms at 4.0%, and utilities and energy at 1.3%.” These operational budget increases seem to run counter to some vendor marketing in the down economy encouraging users to trade some capital costs for a reduction in operational costs through automation.

Some vendors, like EMC Corp. have also been predicting stabilization in the economy and IT organizations by the end of this year, but the survey results show “the worst may not be over,” according Computer Economics’ press release. “Many IT executives expect further budget reductions in the future. About 49% reported that they expect to spend less than the amount allocated in their 2009/2010 IT spending plans compared to only 9% who anticipate being able to increase their IT budgets.”

Though it’s an interesting set of data points within the ongoing discussions of the economy and storage efficiency, I would also point out that with a sample size of 200 administrators, it’s not necessarily a definitive report. I’m hoping more research like this is being done which can be compared and contrasted with these results.

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