Despite concerns about stagflation, some CIOs intend to add to their staff next quarter. The Robert Half Technology IT Hiring Index and Skills report forecasts an overall hiring increase of 12%, which is unchanged from this time last year and 2% higher than the projection for the current quarter.

The hiring index is based on a poll of 1,400 CIOs from across the country. A full 14% plan to add to their staff next quarter, while only 2% anticipate cutbacks. “Companies are investing in new initiatives and technologies such as server and network virtualization; VoIP; and feature-rich, Web 2.0-type Web sites,” says Katherine Spencer Lee, executive director of Robert Half Technology.

For the third consecutive quarter, network jobs are driving growth. And network administration is the skill set in highest demand. Lee cites the expansion of systems to allow users of mobile devices such as laptops and smart phones secure access to the network.

Help desk/end-user support positions are also in demand, followed by applications development and database management. And once again, business growth is the main reason for IT hiring.

The industry that will be adding the most IT headcount seems to be the business services sector. A quarter of CIOs in that industry intend to add staff, while only 3% foresee reductions. Other industries anticipating employment growth include transportation, manufacturing, and retail.

IT leaders in the Mountain states are the most bullish about next quarter’s hiring plans. A full 17% plan to add staff and only 1% anticipate cutbacks. The second best IT hiring region is the West South Central region, which encompasses Arkansas, Louisiana, Oklahoma and Texas.

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