If that were not challenging enough for chief information officers, by then IT executive pay at most companies will be tied to business results, rather than operational performance, and CIOs that haven't already shifted their firm's systems to digital tools are likely to fail, the report said. IDC's forecast is based on an analysis of staffing data at companies worldwide in a range of industries. For IDC, shifting to digital involves more than just moving a few key business applications to the cloud. It requires CIOs to reinvent IT "from top to bottom" by putting in place new digital platforms, while modernizing legacy systems and jettisoning those that are obsolete. To stay competitive, CIOs and the companies they work will need to quickly raise their game when it comes to internal skills development and retention strategies, IDC researchers said: "IT is competing for talent with all organizations, from start-ups to global enterprises, and extreme salary increases for critical roles may decimate IT workforce budgets."