The year started bright for CIOs, with most expecting healthy budgets for 2020. Indeed, surveys pegged the majority of IT budgets as up over last year.
Now many CIOs are preparing for a complete turnaround, as COVID-19, economic shutdowns and the growing potential for a global recession hit hard at organizational revenue.
As a result, IT budgets are now expected to decline.
Multiple firms released data this spring showing that a majority of CIOs are facing cuts. Forrester Research, for example, said CIOs could face a 5 percent cut in 2020 in a best-case scenario. IDC is forecasting a 5.1 percent decline in worldwide IT spending. And Dresner Advisory Services found that 60 percent of respondents reported that the pandemic is impacting IT budgets or projects.
Although CIOs have a long history of doing more with less, they’re now seeing a renewed focus on operational efficiency. But given the increasing importance of IT in driving revenue growth and securing the organization’s place in the market, CIOs need to save money without slashing funds on initiatives that will move their businesses forward.
