Communications and Technology Industry Research

On account of the current challenging economic environment, IT spending budget of enterprises will be flat with a planned increase of 0.16 percent in 2009, according to the 2009 CIO survey by Gartner EXecutive Programs (EXP).

 

The worldwide survey of 1,527 CIOs was conducted by Gartner (News - Alert) EXP from September 15 to December 15, 2008. The survey findings represent CIO budget plans reported at that time and the most comprehensive examination of business priorities and CIO strategies.

 

According to the Gartner EXP CIO report “Meeting the Challenge: The 2009 CIO Agenda”, flat IT budgets were found across enterprises in North America and Europe, with marginal increase in Latin America and a slight decrease in Asia Pacific.

 

The 1,527 CIOs surveyed represent more than $138 billion in corporate and public-sector IT spending. The survey covered 1,527 enterprises are spread across 48 countries and 30 industries.

 

“In 2009, executives face challenging global economic conditions that have not existed for more than 50 years,” said Mark McDonald, group vice president and head of research for Gartner EXP, in a statement. “This environment is reflected in IT budgets, priorities and strategies as one third of CIOs reported no change in their budget from 2008, while 46 percent reported a slight increase, and 21 percent reported a cut in IT budgets.”

 

As per the survey, CIOs will face the need to restructure their IT budgets, reducing in some areas and investing in others. Enterprises expect IT to contribute results in an uncertain economy.

 

CIOs who are facing challenging times, need to be decisive and resourceful in building an effective enterprise that can meet current and future challenges. Leading enterprises recognize the seriousness of economic conditions. Enterprises have confidence in their ability to use IT to achieve results.

 

Enterprises recognize that IT's contribution extends beyond managing expenditures. IT can play a role in reducing enterprise costs by changing business processes, workforce practices and information use.

 

The business priority “improving business processes” has been the No. 1 business expectation of IT since its introduction to the CIO Agenda survey in 2005. In 2009, more than 57 percent of CIOs reported this as one of their top five business expectations.