IT Budgets in 2010 to be Flat: Gartner
Date: Monday , February 01, 2010
The corporate budgets have begun rolling, however the CIOs are yet to turn aggressive in terms of technology usage. The cash allocation towards IT is expected to be flat in 2010, increasing by a weighted global average of 1.3 percent in nominal terms compared with 2009 levels, where IT budgets declined by 8.1 percent.
CIOs see 2010 as an opportunity to accelerate IT’s transition from a support function to strategic contributor focused on innovation and competitive advantage. Though they have aspired for this shift for years, economic, strategic and technological changes have made it feasible only now. 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.
Mark McDonald, Group Vice President and Head of Research for Gartner EXP says, “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. 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.” While technologies are transitioning from ‘heavy‘, owner-operated solutions to ‘light 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.
The worldwide CIO survey conducted by Gartner EXP from September to December 2009 represents CIO budget plans reported at that time. The Gartner EXP CIO report ‘Leading in Times of Transition: The 2010 CIO Agenda’ includes responses from 1,586 CIOs representing more than $126 billion in corporate and public sector IT spending across 41 countries and 27 industries.