Wednesday, July 8, 2009

Stop Acting Surprised: Why IT Salaries Are Falling

A recent article on FierceCIO caught my attention. The article was about

"The semi-annual study from Janco Associates Inc., found that CIOs at mid-size companies felt the most pain, reports Computerworld.com. The median pay for a CIO at a mid-level company fell from about $172,000 to $163,000. Comparatively speaking, the salary for the chief security officer at a company, moved from $148,000 to $143,000. IT planning directors took the biggest hit, falling from about $115,000 to $97,000, according to the survey."

This annoys me. Not because I am looking at a pay cut, but because these people have the nerve to act surprised!
Of course salaries are falling. Here's why:
  1. The global economy is still in deep trouble.
  2. Unemployment is nearing 10% causing downward pressure on all wages
  3. Studies indicate that 41% of all IT projects fail to achieve business goals
  4. Support costs of IT projects are underestimated by about 20%
  5. Only 1 in 5 of all IT projects is likely to bring full satisfaction
  6. The larger the project, the more likely the failure
  7. 90% of IT personnel are out of touch with company priorities
Stop acting surprised that IT salaries are in decline. They will continue to decline as long as IT keeps being the source of so much business pain. Until my fellow IT geeks get their heads out of the sand are align towards business objectives, we will keep seeing cuts and falling budgets.
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Source: http://www.fiercecio.com/story/survey-techs-hgh-end-salaries-are-shrinking/2009-07-01?utm_medium=nl&utm_source=internal