Technology Hiring to Increase in Third Quarter

Chief Information Officers (CIOs) are expecting continued strong hiring in the next three months, according to RHI Consulting’s quarterly Information Technology (IT) Hiring Index. Thirty-one percent of CIOs plan to hire additional IT personnel in the third quarter of 1999, while just 3 percent anticipate staff reductions. Sixty-five percent of CIOs forecast no change in their current hiring levels. The net 28 percent increase in staffing activity is up one percentage point from the prior quarter.The national poll includes responses from 1,400 CIOs from a stratified random sample of U.S. companies with 100 or more employees. It was conducted by an independent research firm and developed by RHI Consulting, a consulting services firm. Firms in the Pacific states expect particularly robust hiring activity during the third quarter, according to the CIOs surveyed. Forty-two percent of respondents anticipate adding IT staff, while 3 percent plan to reduce personnel. The resulting net 39 percent increase in hiring is up 12 percentage points from the second-quarter forecast. "The Pacific region is experiencing solid economic and employment growth," says Greg Scileppi Executive Director of RHI Consulting. "Businesses in Northern and Southern California are hiring information technology professionals to accommodate expansion in high-tech manufacturing and services, new media and business services. In Washington, IT hiring is strong among biotechnology and high-tech firms."CIOs in New England project a net 36 percent increase in the hiring of technology professionals. "Massachusetts leads the region in IT hiring due to the abundance of high-tech related businesses located there," Scileppi notes. "New England is also benefiting from strength in the financial services sector where IT professionals are in demand to implement Web-based initiatives."Hiring projections are at or above the national average in the Mountain region, where the expected net 34 percent increase in hiring is up 11 percentage points from the second quarter, and the West North Central and East North Central states forecast a net 31 percent increase in staffing activity.Among all industries surveyed, finance, insurance and real estate firms plan the most active IT hiring. Forty-three percent of respondents from this sector anticipate adding IT personnel in the third quarter, while just 1 percent forsee cutbacks. The resulting net 42 percent increase in hiring is 14 percentage points above the national average.For more information, visit RHI Consulting’s Web site at www.rhic.com.

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