With a weakening economy, skyrocketing food prices, and an attrition rate of around 14%, Indian CIOs’ biggest worry is increasing the salaries of their IT staff. Data from Forrester’s Forrsights Budgets And Priorities Survey, Q4 2013, indicates that 71% of Indian CIOs will increase their spending on IT staff salaries and benefits in 2014 — tops in the Asia Pacific region (figure below).
In return for the increase in staff salaries, Indian CIOs will face two challenges:
- Increased pressure from CEOs to contribute to the company’s top line. By 2016, 70% of Indian CIOs will report to CEOs. As the boundary between IT and business blurs further, CEOs will get more directly involved in business-led technology discussions as a means to differentiate their organization and drive business growth. They’ll look for new technology capabilities to respond to customer needs better, faster, and cheaper — and won’t be satisfied with an IT organization that merely keeps the lights on.
- The need to retool their IT teams. All too often, IT lacks business-oriented communication skills and team members rarely or never share business knowledge with each other. IT staff continue to be order-takers. The biggest challenge for CIOs today is how to make their technical people more business-savvy; this problem will only get more difficult as pressure from the business increases.