From Dori Reuscher,
Your Guide to Computer Certification.
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Nov 7 2005

New Canaan, CT – Newly released IT pay research from Foote Partners reveals that premium pay for noncertified applications development skills increased 17.6 percent in value in the twelve months ending October 1, 2005. Certified AD skills are up 13.2 percent in the same period.

Overall premium pay for 94 noncertified skills surveyed in the “Quarterly Hot Technical Skills and Certifications Pay Index” (50,000 IT professionals in 1,820 North American employers), grew 9.9 percent in value for the twelve months ending October 1, 2005, and nearly 5 percent in 2005, to an average 7 percent of base salary in median premium paid. Pay for 95 certified tech skills has also risen, by 7.9 percent overall in the past year, to an average 8.2 percent of base salary.

“These are monster numbers for software developers, but for those of us who closely track IT workforce developments, this doesn’t come as a surprise,“ insists David Foote, the firm's co-founder, president and chief research officer. “Probably the biggest change we’ve noticed from a year ago is that CIOs have turned their attention from regulatory compliance to once again focusing on innovation and creating new revenue-producing products and services. This has translated in more demand – in fact, pent up demand -- for applications development skills relative to infrastructure skills, for example,” observes Foote, “But I can report that spending for infrastructure skills is still pretty healthy.”

“Part of this increase is due to post-SOX compliance spending behavior but also to the fact that companies are in-sourcing applications development that might have been outsourced 18 months ago, “ explains Foote. “They’ve become wise to the risks of offshoring, or at least how difficult it is to do it well. Risk aversion has become a prime directive. In this business environment it may be more important to produce predictable results even if it may cost more to do so. If you’re head-to-head with a competitor, or if a revenue window of opportunity with a customer is starting to close, any misstep could mean your job. In that situation most managers will go with their best in-house talent, supplemented by consultants and contractors. They’re seeking out IT workers with industry- and solution-specific experience to go with the tech skills mastery. Skills pay is being used to both attract and retain the talent required, and we’re learning that the skills premium is often being rolled right into their base salary as an adjustment, which is significant.”

“Tech skills are my no means the Holy Grail for IT professionals in the current staffing environment, not with everything else employers are expecting from their IT departments in helping them execute on business strategies,” says Foote. “But it’s clear from our quarterly compensation survey research that while employers are nervous about hiring full-timers and taking on the additional burden of escalating health care costs, they are investing in IT skills in a big way.”

In a detailed news release made available today, Foote Partners includes data charts and trends analyses to support overall findings and comment on new developments.

Download full 13-page news release