IT Spending: Up, Up, and Away
It looks like CIOs are increasing their IT spending in the months to come. This is according to the article CIO survey: IT spending projections rise steadily in Q1 which revealed the survey results of the CIO Magazine Tech Poll.
According to the article, the spending rate of CIOs are predicted to increase of 8.6% during the next 12 months, up from the projected rate of 7.8%. The survey results also revealed the following information:
- 44.8% – rate of CIOs who said that they plan to increase spending over the next year (up from 40.7% last month)
- 13.8% – rate of CIOs who planned to decrease spending (down from 15.5% in December)
Aside from that, the poll also indicated the different functions which could be the target for increased spending in the months to come. These functions are the following:
- storage systems
- data networking
- infrastructure software
- computer hardware
- telecommunications equipment
- e-business applications software
- outsourced IT services
As indicated in the survey results, the spending rate for storage systems was the strongest sector in the poll. The survey showed that 56.7% planned to increase their spending which is up from the original 49.7%. The second category indicated in the survey results was security software with 50.8% stating an increase in their spending rate. On the other hand, the survey results also revealed that there was an obvious decline in the IT workforce. 13% of the participants remarked that IT labor was hard to find last year and in this years survey, the rate doubled showing a total of 26.3%. When asked about the reason for such survey result, Gary Beach, group publisher at CXO Media Inc. remarked that: One of the reasons is that businesses cut too quick, too deep two or three years ago when there was a mad rush to [out]sourcing. Now that the environment has improved a bit, I think the very talented IT workers are calling the shots and doing some job shopping and jumping. Or they’ve gone off and either started working with consulting firms or started their own businesses. It certainly is a trend we’ve been calling out for a long time. This survey result was in coordination with my last blog post entitled IT Workforce: On the Brink.
Thoughts and Insights
In this survey, we could see that a lot of CIOs are now gearing up towards a better and more improved IT in their firm. This is indicated in their willingness to spend more money for the development and improvement of these firms. I think that CIOs having this kind of concept in mind, the IT department would surely flourish. This leaves us to the question on where to find these IT workers. As shown in this survey and from my previous blog post, IT workers are now declining due to different reasons. I just hope that with the added interest of CIOs in terms of finances and growth in this industry, it would be able to produce more quality IT workers and an even more productive work output.