Two-Thirds of CIOs Called on to Generate Revenue, More CIOs Report Directly to CEO than Ever, Harvey Nash/KPMG CIO Survey finds

Largest global IT leadership survey reveals a more creative,
influential CIO, but 65 percent are hindered by the greatest tech skills
shortage since Great Recession

NEW YORK–(BUSINESS WIRE)–#survey–More CIOs report directly to the CEO (34 percent) than at any time in
the past decade, rising 10 percent over last year, according to the 2016
Harvey Nash/KPMG CIO Survey
. CIOs with a direct report to the CEO
are also the happiest (87 percent report job fulfillment). The findings
highlight how CIO priorities continue to shift, revealing the CEO now
focuses on IT projects that make money (almost two thirds, 63 percent),
compared to save money (37 percent). In fact, some of the traditional
top CIO priorities have seen the biggest drop in importance over the
last four years. Increasing operational efficiencies has dropped 16
percent, and delivering stable IT performance has dropped 27 percent.

However, the survey showed that despite being more creative and
increasing their influence, CIOs say they still are being hindered by
the greatest technology skills shortage since the Great Recession almost
a decade ago. Almost two-thirds (65 percent) of CIOs say they believe a
lack of talent will prevent their organization from keeping up with the
pace of change, a 10 percent increase in just 12 months. Data analytics
is the most in-demand skill for the second year running, at 39 percent.
The biggest jump in skill demand year-over-year is digital, up 21
percent, and security, up 17 percent. Companies most crave the newer
digital and IT strategy skills, according to the survey.

In its 18th year, the Harvey Nash/KPMG CIO Survey is the
largest IT leadership survey in the world, and more than any other time,
the survey results reveal an undeniable increase in the influence of the
CIO. There is even more significant change happening with CIOs in
smaller businesses, as they are more than five times as likely to spend
the majority of their time working on external-facing projects such as
developing stakeholder relationships and growth strategies, instead of
traditional IT functions like systems and infrastructure.

“The Harvey Nash/KPMG CIO Survey reveals today’s IT landscape has
dramatically shifted in the last 3 years more so than we’ve seen in the
past 18 years of the survey,” said Harvey Nash USAPAC President and CEO
Bob Miano. “As the CIO role grows in influence, there is more
opportunity for the CIO than ever before. The impact of digital
strategies, increase in diversity leadership and importance of cyber
security are driving this change.”

“The role of the CIO in today’s business is truly focused on innovation
now,” said Marc Snyder, KPMG’s CIO Advisory Global Center of Excellence
leader. “CIOs are no longer focused solely on delivering the right
technology to enable the enterprise, rather they are now the key agent
of change for moving enterprise strategy forward. This survey confirms
that more than ever before, IT leaders must be strategic partners with
the CEO.”

Additional findings from the 2016 Harvey Nash/KPMG CIO Survey include:

Women in IT – Women in IT leadership roles
rises by a third

  • Women in senior IT leadership roles has risen by a third – up from 6
    to 9 percent in the last year
  • Sixteen percent of the U.S. survey respondents were female, compared
    to eleven percent of the global respondents. The global figure is up
    from 8 percent last year and is the first time in the survey’s history
    women made up more than one in ten participants.
  • A third of CIOs report that they now have a formal diversity
    initiative in place

Digital – Less evidence of a turf war over who
owns it

  • One in five companies now employs a Chief Digital Officer, almost
    tripling the number since 2014
  • CDOs are twice as likely to report to the CEO (46 percent) than to the
    CIO (21 percent)
  • The CEO is most likely to “own” digital, at 21 percent
  • IT (16 percent) is almost twice as likely to “own” digital as their
    marketing peers (9 percent)

Cyber security – A third of global CIOs
responded to cyber attacks in the last two years

  • Almost a third (28 percent) of CIOs have had to respond to a major IT
    security or cyber attack on behalf of their organization in the last
    two years
  • Almost half of CIOs (49 percent) report data loss and privacy risks as
    the biggest challenge with adopting cloud technology
  • Only a fifth (22 percent) of CIOs feel confident their organization is
    very well prepared to identify and respond to cyber attacks compared
    to nearly a third in 2014

Outsourcing and contingent labor – for skills
and flexibility, not to save money

  • This year’s survey supports the fundamental change in the reason for
    outsourcing: companies are primarily outsourcing for skills and
    flexibility, not to save money
  • Half of CIOs (50 percent) will increase investment in outsourcing this
    year, up by four percent from 2015
  • In the last five years organizations where the majority of their IT
    workforce is contingent has grown by 33 percent (9 percent to 12
    percent)
  • One in ten CIOs (10 percent) at small organizations will rely on
    contingent staff for more than three quarters of their team, which is
    five times higher than the rate CIOs at large organizations

For more information about the survey and to request a full copy of the
results, please visit www.hnkpmgciosurvey.com
or email awarren@clearedgemarketing.com.

About the Survey

The 2016 Harvey Nash/KPMG CIO Survey is the largest IT leadership survey
in the world in terms of number of respondents. The survey of 3,352 CIOs
and technology leaders was conducted between December 12, 2015 and April
10, 2016, across 82 countries.

About Harvey Nash Inc.

Harvey Nash Inc. is the U.S. division of the Harvey Nash Group, a global
professional recruitment firm and IT outsourcing service provider traded
on the London Stock Exchange since 1997. Harvey Nash has helped over
half the world’s leading companies recruit, source and manage the highly
skilled talent they need to succeed in an increasingly competitive,
global and technology driven world. With 7,000 experts in 43 offices
across Europe, Asia and North America, Harvey Nash has the reach and
resources of a global organization, and it fosters a culture of
innovation and agility that empowers all employees across the world to
respond to constantly changing client needs. Harvey Nash works with
clients, both big and small, to deliver a portfolio of services: IT
recruitment, IT outsourcing/offshoring and executive search. To learn
more, please visit www.harveynashusa.com.
Follow us: www.twitter.com/harveynashusa
and www.facebook.com/harveynashusa.

About KPMG LLP

KPMG LLP, the audit, tax and advisory firm (www.kpmg.com/us),
is the U.S. member firm of KPMG International Cooperative (“KPMG
International”). KPMG International’s member firms have 174,000
professionals, including more than 9,000 partners, in 155 countries.

Contacts

ClearEdge Marketing
Ann Warren
+1-770-328-8384
awarren@clearedgemarketing.com
or
KPMG
LLP
Christopher Bacey
+1-201-505-6194
cbacey@kpmg.com
Twitter:
@CGB1471

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