Technology executives expect information technology (IT) hiring to continue in the fourth quarter of 2011, according to the just-releasedRobert Half Technology IT Hiring Index and Skills Report. In the latest quarterly survey,12 percentof chief information officers (CIOs) said they plan to expand their IT departments, and6 percentexpect cutbacks, for a net6 percentprojected increase in hiring activity. This is up two points from the previous quarter's projections.

TheIT Hiring Index and Skills Reportis based on telephone interviews with more than 1,400 CIOs from companies acrossthe United Stateswith 100 or more employees. Executives are asked whether their companies plan to increase or decrease the number of full-time IT personnel on their staff during the coming quarter. The survey is conducted by an independent research firm and developed by Robert Half Technology, a leading provider of IT professionals on a project and full-time basis.Robert Halfhas been tracking IT hiring activity inthe United Statessince 1995.

Key Findings

• The net6 percentincrease in anticipated IT hiring activity is up two points from a net4 percentincrease in hiring activity projected last quarter.
• Ninety-two percentof CIOs are confident in their companies' growth prospects in the next three months, up five-points from last quarter.
• Eighty-eight percentof technology executives rated the confidence of their firms investing in IT projects in the fourth quarter a 3 or higher on a 5-point scale, with 5 being the most optimistic.
• IT security and networking professionals are in greatest demand right now, according to survey respondents.
• Two-thirds(66 percent) of CIOs said it's challenging to find skilled professionals today, up eighteen points from the previous quarter.

"CIOs are optimistic but are being careful not to overload their teams with too many projects, given the challenging recruiting environment," saidJohn Reed, executive director of Robert Half Technology. "Right now, companies are focused on the 'need-to-have' projects that can enhance security, streamline processes or generate revenue."

Confidence in Business Growth and IT Investments

Ninety-two percentof CIOs reported being at least somewhat confident in their companies' prospects for growth in the fourth quarter of 2011;39 percentrated the probability of investing in IT projects a 4 or higher on a 5-point scale, with 5 being the most optimistic.

Skills in Demand

The functional areas in which executives say the greatest challenge in finding skilled IT professionals are security (18 percent) and networking (17 percent). Data/database management and help desk/technical support followed, each with11 percent.

Network administration remains the skill set in greatest demand, cited by63 percentof CIOs. Desktop management ranked second, with50 percentof the response, followed by desktop support at43 percent.

Regional Outlook

CIOs in the Mid-Atlantic(1) area of the country plan the most IT hiring in the fourth quarter with a net13 percentof executives anticipating adding IT staff.

Industries Hiring

Executives in the transportation industry expect the most IT hiring in the fourth quarter. A net18 percentof CIOs in this sector plan to expand their IT departments. This was followed by the business services industry with a net12 percentof technology leaders anticipating hiring increases. Manufacturing and wholesale were next, with a net10 percentand9 percent, respectively, of executives in these industries planning to add staff.