Almost half of IT leaders are reporting salary increases and budget growth. The number of IT managers with year-on-year budget increase is the highest in the last 13 years. One technology area rapidly developing wider adoption is artificial intelligence, with seven in ten featuring this technology as part of their investment plans, reports KPMG and Harvey Nash – CIO Survey 2018.
The survey found that trust is the new battleground for IT, as organizations delicately balance the revenue-driving potential of utilizing customer data with the need for privacy and security. Those businesses managing this balance most effectively (customer-centric organizations) are 38 percent more likely to report greater profitability than their competitors. However, the drive towards protecting data has caused a huge demand for ‘security and resilience’ skills, which experienced the biggest jump in skills shortages, increasing 25 percent year-on-year.
“CIOs have a really difficult tight rope to walk,” said Pavol Adamec, Risk Consulting Executive Director, KPMG in Slovakia. “The organizations that can get this balance right, between innovation and governance, are in the strongest position to compete in an increasingly complex technology environment.”
77 percent of IT leaders are ‘most concerned’ about the threat of organized cyber crime, up from 71 percent last year. Only one fifth (22 percent) state they are well-prepared for a cyber attack. The largest IT leadership survey in the world, analyzing responses from organizations with a combined annual cyber security spend of up to €40bn (US$46bn1), found almost a quarter (23 percent) more respondents than in 2017 are prioritizing improvements in cyber security as cyber crime threats reach an all-time high, while managing operational risk and compliance has also become a significantly increased priority (up 12 percent). These two areas represent the fastest growing IT priorities of company boards 1.
Despite the fact that regulatory compliance is more and more important to IT managers over a third (38 percent) of those surveyed in April expected they would not be GDPR compliant at the May deadline.
While organizations recognize an effective digital strategy is critical to successful data security, many report they still struggle - with 78 percent stating that their digital strategy is only moderately effective, or worse. More than a third of companies (35 percent) can’t hire and develop the people they need with digital skills. For the fourth year in a row, big data and analytics is the number one skill in short supply (46 percent).
To help with digital success, chief digital officers (CDOs) are proving their worth. Organizations with a CDO, either in a dedicated or acting role, are over twice as likely to have a clear and pervasive digital strategy than those without one (44 percent versus 21 percent).
Female IT leadership continues on an exceptionally slow upward trend, this year reaching 12 percent - up from 10 percent last year. Women represent just one in five (21 percent) of technology teams.
1 The Ponemon Institute calculated that the average cost of cyber security in 2017 for companies reached US$11.7million. The Harvey Nash/KPMG CIO Survey researched 3,958 IT leaders, so the estimated total annual cost of cyber security for organizations that participated in the survey is up to $46.3bn
In its 20th year, the 2018 Harvey Nash/KPMG CIO Survey is the largest IT leadership survey in the world in terms of number of respondents. The survey of 3,958 CIOs and technology leaders was conducted between 20th December 2017 and 3rd April 2018, across 84 countries.
For more information about the survey and to request a full copy of the results, please visit www.hnkpmgciosurvey.com.
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