Final Report: Providers

11. IT Budget and Staff

IT staffing and budgets are predicted to continue rising. However, the percent of budget increase will be smaller than in past years.

Senior IT executives anticipated that staffing levels and information technology budgets will increase in the next 12 months, although there have been slowdowns in both areas since last year. Two-thirds of this year's respondents (67 percent) predicted that the IT operating budgets at their organizations will increase (similar to last year's finding). Among those predicting an increase, 31 percent reported a probable increase and 36 percent reported a definite increase. The percentage of respondents predicting no budget change increased to 20 percent from last year's 15 percent. Fewer respondents anticipated a budget decrease-12 percent this year compared with 14 percent in 2001.

Reasons for budget increase cited in the 2002 survey were similar to those cited in the 2001 survey. The primary reason cited for an anticipated budget increase was an overall growth in number of systems and technologies (39 percent in 2002). The next most frequently cited reason was a call for increased spending in long-term IT plans or organizational strategic plans (25 percent in 2002). Overall budget increases were cited by 16 percent of respondents.

Although almost the same number of senior-level executives reported a probable or definite budget increase this year as last year, the amount of the projected increase is smaller. In 2001, 74 percent of respondents stated that their budgets would increase by 10 percent or less. This year, 83 percent of respondents believed that their IT budgets would increase by 10 percent or less.

The amount of funds controlled outside the IT department was reported to have increased. Last year, 21 percent of respondents indicated that more than 20 percent of the IT spending for their facility was controlled outside the IT department. In 2002, 25 percent reported this arrangement.

Almost two-thirds of respondents (64 percent) indicated that they work at healthcare facilities employing 24 or fewer FTEs in the IT department. Compared to 2001 results, fewer IT managers reported a projected staff increase-47 percent in 2002 versus 60 percent in 2001. Far more respondents reported this year that their staffing would not change (46 percent) than did last year (27 percent). The greatest technology staffing needs were identified as network and architecture support (38 percent), PC/server support (34 percent), and Intranet/Internet (32 percent).

Figures:

Figure 24. Projected Change in 2002 IT Operating Budget
Figure 25. Reason for Increase in 2002 Budget
Figure 26. Percent of IT Spending Controlled Outside IT Department
Figure 27. Expected Change in IT Staff in Next 12 Months
Figure 28. 2002 IT Staffing Needs

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