Healthcare IT 2016: Expectations for Budget Growth Decelerates; Confidence to Meet Demands Remains High

TEKsystems survey identifies security, mobility and business intelligence as dominant concerns as organizations attack digital modernization of healthcare

HANOVER, Md.--()--Leading into HIMSS16, TEKsystems®, a leading provider of IT staffing solutions, IT talent management expertise and IT services, today highlighted study findings that explore the current state of IT operations within healthcare organizations. The results identify key objectives and challenges for healthcare IT teams, the skills most needed to meet those demands, and expectations for spending and confidence. The data is gleaned from information captured in TEKsystems’ annual IT forecasts as reported by IT leaders (CIOs, IT VPs, IT directors, IT hiring managers) at healthcare organizations.

Key highlights from the survey include:

 

Expectations for Budget Increases Continue to Drop; Confidence in Ability to Meet Business Demands Continues to Rise

 
Q: How do you expect your organization’s IT budget to change this year compared to last year?
    2013   2014   2015   2016
Increase   52%   68%   51%   41%
Stay the same   41%   23%   38%   45%
Decrease   7%   9%   11%   14%
 
 
Q: How confident are you in your IT department’s ability to satisfy overall organizational demands this year?
    2013   2014   2015   2016
Confident   58%   59%   64%   68%
Neutral   29%   31%   26%   24%
Unconfident   13%   10%   10%   8%
       
  • TEKsystems’ Take: The percentage of healthcare IT leaders who expect budgets to increase is at its lowest level since TEKsystems’ first annual IT forecast survey for 2013. Despite this deceleration, nearly 7 out of 10 IT leaders express confidence in their ability to satisfy overall organizational IT demands. It appears that organizations have become increasingly comfortable in meeting ARRA, HITECH and EMR/EHR incentive targets as they have turned the corner on implementing these requirements.
 

IT Priorities Consistent Year to Year; Security, Mobility and Business Intelligence Critical to Mobile Health and Patient Engagement Efforts

 
Q: Which of the following will have the biggest impact on your organization this year?*

(Select all that apply)

Ranking   2013   2014   2015   2016
1   Security (58%)   Mobility (59%)  

Business intelligence /
Big Data (61%)

  Security (60%)
2   Mobility (52%)  

Consumerization of IT /
BYOD (56%)

  Security (54%)  

Business intelligence /
Big Data (58%)

3  

Business intelligence /
Big Data (41%)

  Security (55%)   Mobility (42%)   Mobility (55%)
4   Cloud computing (39%)  

Business intelligence /
Big Data (44%)

 

Consumerization of IT /
BYOD (38%)

  Cloud computing (49%)
5  

Virtualization / software-
defined networks (33%)

 

Enterprise resource
planning (42%)

  Cloud computing (31%)  

Consumerization of IT /
BYOD (47%)

*Positions that have been in the top five for four years running are bolded.

       
 
Q: How do you expect spending to change in the following areas this year versus last year?
    Percent of IT leaders expecting increases
    2013   2014   2015   2016
Security   +72%   +69%   +70%   +73%
Mobility   +69%   +65%   +61%   +64%
Business intelligence / Big Data   +42%   +48%   +60%   +62%
Cloud   +49%   +54%   +55%   +58%
Virtualization / software-defined networks   NA   NA   NA   +41%
Legacy modernization   +41%   +38%   +41%   +30%
Enterprise resource planning (ERP)   +32%   +28%   +32%   +28%
       
  • TEKsystems’ Take: For the past four years, IT leaders listed security, mobility and business intelligence / Big Data among the top four areas impacting their organizations. The consistency of these impact areas explains why IT leaders’ confidence in supporting overall organizational IT demands continues to be strong. Initiatives related to mobile health and patient engagement are underlying drivers for continued spending in security, mobility and business intelligence, as wearables and the Internet of Things (IoT) begin to shift how providers care for their patients. Additionally, it appears spending in these areas is taking place to the detriment of areas that may have already reached maximum optimization (e.g., legacy modernization, ERP).
 

Project Managers Remain Critical; Security Leaps to Top as Hardest Role to Fill

 
Q: Which IT roles are the most critical for enabling your organization to achieve success this year?**

(Select all that apply)

Ranking   2013   2014   2015   2016
1   NA  

Programmers and
developers

  Project managers   Project managers
2   NA   Project managers  

Help desk /
Technical support

  IT managers (line-level)
3   NA  

Help desk /
Technical support

 

Programmers and
developers

 

Programmers and
developers

4   NA   Business analysts   IT managers (line-level)  

Help desk /
Technical support

5   NA   Architects   Software engineers   Database administrators

**Positions that have been in the top five for three years running are bolded.

 
 
Q: How difficult is it currently to find exceptional talent to fill roles for the following types of IT-related positions?***

(Select all that apply)

Ranking 2013 2014 2015   2016
1 Software engineers

Programmers and
developers

Project managers   Information security
2 Project managers Software engineers Information security   Project managers
3

Programmers and
developers

Project managers

Programmers and
developers

 

Programmers and
developers

4 Information security Information security Software engineers   Software engineers
5 Business analysts Business intelligence Architects   Database administrators

***Positions that have been in the top five for four years running are bolded.

 
 
Q: How do you expect your IT staff’s salaries to change this year versus last year for the following skill sets and technologies?
    Percent of IT leaders expecting increases
    2013   2014   2015   2016
Security   +60%   +58%   +59%   +62%
Project managers   +54%   +58%   +55%   +58%
Programmers and developers   +56%   +54%   +52%   +55%
Business intelligence / Big Data   +41%   +49%   +50%   +51%
Software engineers   +49%   +55%   +53%   +50%
       
  • TEKsystems’ Take: From 2013 to 2016, healthcare IT leaders have consistently agreed on the most critical skills and the most difficult positions to fill. While core builder positions (i.e., programmers and developers, software engineers) are both critical and difficult to fill, security—critical for all stages of a healthcare IT initiative—has continually increased in importance, and as a result, continues to maintain its priority as the area where the highest percentage of healthcare IT leaders are allocating salary increases.
 

Salaries, Staffing Levels and Staff Allocation Has Stabilized

 
Q: How much do you expect your overall IT staff’s salaries to change this year versus last year?
    2013   2014   2015   2016
Increase by 10% or more   7%   3%   2%   3%
Increase by 6-9%   4%   5%   7%   5%
Increase by up to 5%   67%   61%   64%   71%
Stay the same   19%   25%   27%   20%
Decrease by up to 5%   2%   5%   0%   1%
Decrease by 6% or more   1%   1%   0%   0%
 
 

Q: How much do you expect hiring to change for the following this year versus last year?

Full-time IT staff   2013   2014   2015   2016
Increase   50%   44%   43%   48%
Stay the same   46%   54%   52%   49%
Decrease   4%   2%   5%   3%
Contingent IT staff   2013   2014   2015   2016
Increase   52%   48%   42%   44%
Stay the same   40%   49%   52%   54%
Decrease   8%   3%   6%   2%
 
 

Q: What is the approximate makeup of your current IT department?

    2013   2014   2015   2016
Full-time IT staff   76%   71%   75%   76%
Contingent IT staff   24%   29%   25%   24%
       
  • TEKsystems’ Take: Average salary increases of up to 5 percent are expected, but only 3 percent of IT leaders expect salaries to increase by 10 percent or more. Hiring expectations are anticipated to increase slightly in 2016. All of these data points indicate that overall staffing is continuing to stabilize.

“The forecast results speak to the cyclical nature of IT investments healthcare organizations have undertaken over the past several years,” says Ryan Skains, executive director of TEKsystems Healthcare Services. “In 2014, regulatory changes drove spending up, but now healthcare leaders have grown past the threshold of building applications or interoperability coding and are looking to get a return on investment. Despite reports that there will be fewer budget increases this year, confidence is at a historical high. Healthcare IT leaders still have some big projects ahead—such as an industrywide move to mobile health and patient portals—yet seem poised to take them on. Hiring is stabilizing with slight increases expected, and salaries are expected to increase for skill sets that will be critical for this digital modernization.”

TEKsystems will be exhibiting at booth No. 6450 at HIMSS16, March 1–3, 2016, at the Sands Expo in Las Vegas.

TEKsystems’ Ryan Skains is available for additional commentary. For more information about the survey, or to schedule an interview, please contact Rick McLaughlin at TEKsystems@teamlewis.com.

About TEKsystems®

People are at the heart of every successful business initiative. At TEKsystems, we understand people. Every year we deploy over 80,000 IT professionals at 6,000 client sites across North America, Europe and Asia. Our deep insights into IT human capital management enable us to help our clients achieve their business goals—while optimizing their IT workforce strategies. We provide IT staffing solutions, IT talent management expertise and IT services to help our clients plan, build and run their critical business initiatives. Through our range of quality-focused delivery models, we meet our clients where they are, and take them where they want to go, the way they want to get there.

TEKsystems. Our people make IT possible.

Contacts

TEKsystems
Rick McLaughlin, 781-418-2402
TEKsystems@teamlewis.com

Release Summary

TEKsystems survey of healthcare IT leaders identifies security, mobility and business intelligence as dominant concerns for 2016 as organizations attack the digital modernization of healthcare.

Contacts

TEKsystems
Rick McLaughlin, 781-418-2402
TEKsystems@teamlewis.com