A Gartner study due to be published tomorrow has revealed that CIOs are successfully managing IT departments with just 1% annual growth in their IT budgets.
Based on a survey of 2,000 CIOs worldwide, conducted in the fourth quarter of 2010, Gartner assessed whether IT budgets were increasing, decreasing or unchanged in 2011.
The study reported that CIO budgets will basically be flat in 2011, with an average increase of 1%. Gartner believes this is because CIOs are now getting savvy with their IT budgets.
"Reinvestment of the IT budget is allowing growth to remain stable while driving demand for IT services and expansion outside core IT infrastructure services," the research firm said.
Computer Weekly says...
CIOs have seen drastic cuts to their budgets during 2010. Companies have traditionally outsourced IT functions to reduce operational costs. However, the introduction of cloud services and virtualisation is changing the dynamics of IT departments, which is driving down costs, allowing IT to do more with less.