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IT cuts are harming innovation and business growth, say IT leaders

Cost-cutting in the IT department over the past two years has killed business innovation and lost customers, according to a survey of senior IT and business executives in 13 countries.

Of nearly 3,000 executives surveyed, 25% said IT budget cuts had harmed innovation, and 23% said IT budget cuts had stopped them winning new business. Twenty seven per cent said an inability to find the right information when they needed it has cost them business during the recession.

Research firm Datamonitor surveyed more than 2,400 IT users and 270 CIOs and senior executives in 13 countries for BT Global Services. "The survey delivers clear evidence that IT budget cuts during the recession are impairing business performance," the firm said.

The researchers found nearly two-thirds of CIOs and senior executives saying that ageing IT was a barrier to their ability to "think globally". Some 57% of CIOs and 60% of senior executives blamed inadequate software solutions for this.

Executives were also sceptical of the promises made for cloud computing. Some 53% CIOs did not see how the cloud could save them money. Most CIOs and business executives were also reluctant to run applications and store data on servers based outside their country.


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