IT spending continues to rise
- 29 September, 2010 07:09
Over half of IT leaders plan to ramp up budgets in the coming year, with only 16 per cent planning cuts. So says the latest CIO Economic Impact Survey, which polled over 250 IT leaders about their spending plans and business outlook at the end of the summer. The survey also indicates 64 per cent plan to increase IT capital spending in the next year, up 8 per cent from April.
CIOs will direct new budget dollars toward multiple investments, including applications (50 percent), Web and mobile (42 per cent), and compensation (40 per cent).
Preston J. Penn Sr., CIO of Penn Telecom Group, said he is increasing spending on improving technology. "We are looking to improve how we communicate and to bring new services, such as voice over IP."
The recession seems to have spurred adoption of alternative IT models. More than half of those surveyed said they chose cloud, on-demand services and software as a service because they reduce hardware infrastructure costs (53 per cent) and provide scalability on demand (52 per cent).
Phil Baughn, CIO of the Commonwealth of Kentucky, is among those looking to alternative IT. "Budgets have been dramatically decreased because of the economy, so normal plans to refresh older technology have been stagnant," says Baughn. "We are looking outside the box."
In terms of staffing, 41 per cent of respondents said cloud offerings have helped reduce personnel costs and only 35 per cent plan to increase spending on full-time in-house workers. Offshore outsourcing is steady, with 71 per cent of CIOs keeping budgets the same for short-term projects.
There has been some activity in increasing top-line revenue growth, with 16 per cent of respondents assigning 21 per cent to 30 per cent of funds to such projects.
Overall, signs of a recovery are gaining, with 48 per cent of IT leaders saying their businesses have stabilized and are returning to growth. Meanwhile, 35 per cent plan to increase IT capital spending in the next six months with 29 per cent planning to increase IT project spending.
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.
- Protection Storage Architecture: The What, Why, and How
- Taking Managed Security Services to the Next Level
- Whitepaper: Preventing Data Loss Takes More Than MDM
- Cloud-Based Mobile Device Security Streamlines Data Protection
- Pathways Advanced ICT Leadership Development Program Course Outline and Big 6 2013
Five trends affecting legal CIOs
CIO Roundtable: The changing face of security
Bitcoin malware count soars as cryptocurrency value climbs
Bouncing Back From CIO Unemployment
Union slams latest fibre-to-premise trial in Tasmania
Chandler Macleod recruits new user virtualization platform
One of Australasia’s largest and most successful recruitment and human capital management companies share their success story after recruiting a user virtualization platform, giving them control over the users and devices that have access to specific applications.
Best Practices in Data Protection Monitoring
This whitepaper discusses best practice in data protection monitoring, with a focus on recoverability and visibility as significant drivers for success. Whether backing up a private cloud or several smaller environments, learn how a unified view is necessary for proactively reporting protection, compliance to auditors, and understanding overall data protection health, performance, and reliability.
Unlocking the Power of Flash
Continuous data growth coupled with a new generation of multi-core CPUs has placed new demands on storage systems. This whitepaper details why firms should consider moving from HDDs to higher-performance Flash media, with the adoption of new technology with a higher I/O intensity.