Skills matter, and those with IT skills have seen a steady increase in compensation over the past year.
The IT compensation and bonuses rose for both certified and noncertified skills, according to research from Foote Partners LLC, a Vero Beach, Fla., research and advisory firm that publishes the IT Skills and Certifications Pay Index (ITSCPI) of IT compensation.
The ITSCPI follows the IT compensation paid for 893 skills from a wide variety of technical functions and IT platforms. The data is drawn from 258,825 employees who work for 3,018 employers across 45 industries in 83 U.S. and Canadian cities. The ITSCPI is continuously updated and published every three months, according to the company.
The most recent ITSCPI indicated that skills pay premiums, or extra pay awarded by employers outside of the base salary, rose in every calendar quarter in 2016. Certifications appear to be more valuable, according to the index, as 417 certified skills gained 2.6% in market value over the year, while 476 noncertified skills grew at 1.2%. Compensation was volatile for certified and noncertified skills alike, however, as the cash market value of nearly 25% of all 893 skills changed every three months in 2016. In just the last three months of the year, 22% of all skills changed value, with 100 making gains and 92 losing value.
Overall, cash bonuses for 417 IT certifications decreased slightly by -0.1% in the fourth quarter of 2016, following 14 consecutive quarters of overall market value gains. This positive streak of market gains came after 25 quarters of declines between 2007 and 2013.
Certified skills for application development and programming languages were the market values leaders, with gains of 1.2% in the fourth quarter of 2016, followed by certified systems administration and engineering skills at 0.6%, and information security at 0.4%. Certified architecture and process management skills declined by 1.9%, and certified database skills by 0.1%. There were no changes in market value for certified networking and communications skills, certified web development skills, and certified training skills.
Certification increases -- and declines
Over the entire year in 2016, some certified skills had strong gains, but declines were more common. Certified skills for information security gained the most at 8.8%, followed by application development and programming languages skills at 5.8%. The top decliners were certified training skills at 5.9%, networking and communications skills at 2%, systems administration and engineering at 0.7%, project management process at 0.6%, and database skills at 0.6%. Web development skills showed no change over the year.
Cash market value for noncertified skills increased slightly by 0.1% in market value in the fourth quarter of 2016. They were led by messaging and communication skills at 2.9%, systems and networking skills at 2.7%, database skills at 2.1%, and operating systems skills at 0.3%. The top declining noncertified skills were SAP and business application skills at 2.5%, application development tools skills at 0.7%, web and e-commerce development skills at 0.6%, and process management skills at 0.3%.
The market value for most noncertified skills made overall gains over the entire year for 2016, although there were some differences from the last-quarter results. Messaging and communications skills led with gains of 8.2%, followed by database skills at 5%, application development tools and platform skills at 4%, operating systems skills at 3.6%, and web and e-commerce development skills at 0.3%. The top overall declines were in SAP and business application skills at 5.8%, systems networking skills at 0.5%, and process management skills at 0.4%.
IoT services market worth $18 billion by 2020
Is the internet of things (IoT) really bigger than the hype?
It definitely is, according to a new report from Everest Group, a Dallas-based technology research and consulting firm.
The report, "Internet of Things Services -- PEAK Matrix Assessment and Market Trends -- IoT: Bigger than the Hype," claims the potential for IoT-related services is growing rapidly, as enterprises continue to make real investments in IoT and expand partnerships to develop growth areas. According to the report, the IoT services market is expected to more than double in the span of five years, rising from $7 billion in 2015 to $18 billion in 2020.
There are a number of ways that enterprises are increasingly benefiting from IoT, the report said, including becoming more efficient, enabling data-driven decision-making, and developing new revenue opportunities through customer-centric products and services. However, given the complexity of IoT implementations, enterprises will require significant help from service providers.
"Enterprises are increasingly adopting IoT to improve operational efficiency and create disruptive business models," said Chirajeet Sengupta, vice president at Everest Group, in a press release. "A number of players across the IoT stack are making huge investments to grab a larger share of the pie, but most fall short on expectations of a transformation partner. Service providers can use this opportunity to draw on their engineering and services expertise and embrace new engagement models to help enterprises with long-term innovation."
The report also identified several IoT trends, including:
- Eighty-seven percent of enterprises are optimistic about the ROI from IoT investments.
- The percentage of IoT projects that have moved from pilot to production has quadrupled in three years, going from 10% in 2014 to 40% in 2016.
- All industries are preparing for IoT adoption, with manufacturing and energy and utilities taking up a little more the 50% of the IoT projects. Manufacturing leads all industries with a 36% adoption rate.
The report assessed IoT services from 16 IT service providers around the globe, focusing on their IoT services suite, scale of operations and domain investments, among other criteria. The assessments were based on interactions with the service providers, client reference checks and an overall assessment of the IoT services market.
What were the top IT skills stories of 2016?
Many in-demand skills are not technical.
IoT market growth depends on data security.