In short, the shortage is far more pervasive and enduring than is commonly understood. Effective strategies for coping with the shortage must go well beyond recruiting and compensation. Generally, CEOs respond best to fear, especially when asked to plan several quarters into the future. Many moved into upper management during those years when downsizing the IT department was in fashion. It's time to help them realize that software will be the key to competing, and that they can't take for granted their ability to create the software they will need.
Organizational changes can help in getting that message across.
It made sense for CIOs to report to CFOs when IT was seen as a productivity investment. If it is to be viewed as a strategic weapon, CIOs and Chief Technology Officers should report directly to the CEO, and one of them should have a seat on the company's board of directors. Don't wait for Year 2000 disasters to make the case that the business now runs on technology and competes on the basis of software. It is in the company's interest to make sure technology is well represented in business decisions at the highest level. Without the commitment from the top, the changes required to close the labor gap won't happen.