IT Budgets in 2010 Same as 2005 Levels

Posted by Kirhat | Sunday, May 15, 2011 | | 0 comments »

IT Budget

A 2010 CIO survey by Gartner Executive Programs (EXP) showed that IT budgets will essentially be flat in 2010. It will be increasing by a weighted global average of 1.3 percent in nominal terms, compared with 2009 levels where IT budgets declined 8.1 percent. It was also revealed that 2009 was the most challenging year for IT since the survey began in 1999, and CIOs had faced multiple budget cuts wiping away four years of budget increases, giving CIOs basically the same level of resources as they had in 2005. While there are some signs of recovery in the 2010 projections, these will not overcome last year’s cuts.

The worldwide CIO survey was conducted by Gartner EXP from September to December 2009 and represents CIO budget plans reported at that time. The Gartner EXP CIO report "Leading in Times of Transition: The 2010 CIO Agenda" represents the most comprehensive examination of business priorities and CIO strategies. The survey includes responses from 1,586 CIOs representing more than US$ 126 billion in corporate and public-sector IT spending across 41 countries and 27 industries.

"2009 was the most challenging year for CIOs in the corporate and public sectors as they faced multiple budget cuts, delayed spending and increased demand for services with reduced resources," said Mark McDonald, group vice president and head of research for Gartner EXP. "This is set to change in 2010, as the economy transitions from recession to recovery and enterprises transition their strategies from cost-cutting efficiency to value-creating productivity."

Mr. McDonald said that while technologies are transitioning from "heavy" owner-operated solutions to "lighter-weight" services, CIOs are, in turn, transitioning IT beyond merely managing resources to taking responsibility for managing results.

"Transition gives the enterprise and IT the opportunity to reposition themselves and exploit the tough corrective actions taken during the recession," he said. "CIOs see 2010 as an opportunity to accelerate IT's transition from a support function to strategic contributor focused on innovation and competitive advantage. They have aspired to this shift for years, but economic, strategic and technological changes have only recently made it feasible."

Gartner EXP’s CIO survey findings show that, in the near term, business expectations and CIO strategies appear stable, with a continued focus on business process improvement, cost reduction and analytics.

Top 10 Business and Technology Priorities in 2010
BUSINESS PRIORITIESRANKING.TECHNOLOGY PRIORITIESRANKING
Business process improvement1Virtualization1
Reducing cost
2Cloud computing2
Increasing use of info/analytics
3Web 2.03
Improving enterprise workforce effectiveness
4Networking, voice and data communications4
Attracting and retaining new customers
5Business Intelligence5
Managing change initiatives
6Mobile technologies6
Creating new products and services
7Data/document storage and management7
Targeting customers and markets more effectively
8Service-oriented applications8
Consolidating business operations
9Security technologies9
Expanding current customer relationship
10IT management10

0 comments

Post a Comment