CIO's fourth quarter IT hiring outlook steady

Fourteen percent of chief information officers plan to hire technology staff in the fourth quarter, according to a hiring survey by staffing firm Robert Half.

That hiring rate makes for a 12 percent differential in hiring plans since 2 percent anticipate cutbacks, according to the Robert Half Technology IT Hiring Index and Skills Report. A net increase of 15 percent was projected last quarter.

Most CIOs (83 percent), however, plan to stand pat with no changes in IT hriing. Robert Half's survey, which is based on interviews with 1,400 CIOs, indicates that IT hasn't yet been hit by the recession worries facing the broader economy--at least not yet.

How long this optimism lasts remains to be seen. Why the skepticism?

From the Robert Half release:

The finance, insurance and real estate sector is expected to see the most active hiring in the fourth quarter. Twenty-three percent of CIOs plan to expand their IT departments and 2 percent plan staff reductions, for a net 21 percent hiring increase. “The commercial real estate segment has experienced growth over the past several months,” Katherine Spencer Lee, executive director of Robert Half Technology, said. “Firms in the finance, insurance and real estate sector are actively recruiting Internet/intranet developers, networking experts and help desk/end-user support staff to sustain growth.”

Something--subprime mortgages, hedge fund blowups, a decrease in M&A fees--tells me that the financial sector may not be so enthusiastic about hiring in upcoming quarters. Aside from the commercial real estate market most financial services firms hit some severe turbulence in August. Robert Half's survey was also conducted between July 2 and Aug. 2 so it missed most of the credit market meltdown.

Here's a breakdown of the key Robert Half findings:

• 45 percent of CIOs looking to hire said corporate growth was the primary reason. Improving customer support got 18 percent followed by installing enterprise applications at 15 percent.
• The biggest skill in demand was Windows administration with a focus on Server 2000 and 2003. Of the CIOs surveyed, 73 percent said Windows administration was the most needed technology skill. Network administration was cited by 70 percent with database management getting 60 percent.
• The most in demand category was networking, which was cited by 18 percent of CIOs. This response is driven by smart devices connecting to corporate networks.