IT Economic Outlook Study Reveals IT Spending Tempered by Cautious Optimism

Many CIOs say they plan to increase IT budgets and continue spending on new projects. They also indicate a growing interest in investment in edge technologies such as mobile, social and cloud.

Many CIOs are reporting a new-found economic confidence and say they plan to increase IT budgets and continue spending on new projects. They also indicate a growing interest in investment in edge technologies such as mobile, social and cloud.

The latest CIO Magazine IT Economic Outlook Survey reveals that almost half of 200 top IT executives surveyed in the magazine's latest Tech Poll look forward to increasing IT spending by 3 percent, albeit with some reservations due to continued concerns about the economy.

CIO Magazine IT Economic Outlook Survey
CIO Magazine IT Economic Outlook Survey

Forty-seven percent of CIOs surveyed reported that IT spending increases are on the horizon, up from 34 percent just nine months ago in an August 2011 Tech Poll, but six percentage points lower than reported one year ago, in April 2011. At the same time, just one in five CIOs anticipate budget cuts, a figure consist with last years survey results.

Within the next several years, innovative technologies such as mobile, social and cloud will dominate IT budge share. Expect to see a 12 percent increase over three years, as well as impact headcount and staff roles as CIO shift spending away from core technologies such as infrastructure, network, storage, compute and ERP. Expect to see a 12 percent drop in spending on core technologies during the same time frame.

Investment in hardware will take a hit as CIOs steer budget dollars toward outsourced IT services including cloud, increased IT compensation costs, and, mobile/wireless and applications, several key areas identified for spending increases.

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