Gartner: IT budgets cut by 10%


Gartner: IT budgets cut by 10%

Cliff Saran

CIOs have had their IT budgets cut by as much as 10%, as businesses continue to lower costs to combat the recession.

Analyst firm Gartner conducted a survey of 900 CIOs between 1 March and 30 April 2009 to gauge the potential impact of macroeconomic concerns on IT budgets.

CIOs in healthcare-related industries reported an average budget increase of 2.2%, but CIOs in all other major industries reported a decline in the first quarter of 2009. The largest declines were in professional services, telecommunications and high tech (-10%), followed by manufacturing (-8%), utilities (-4%) and financial services (-4%).

Dave Aron, vice-president at Gartner, said CIOs were looking to cut costs, but they were not planning to outsource more to achieve this. "CIOs are not looking at outsourcing to solve budget problems. The dominant strategy among CIOs is to change the workforce and renegotiate contracts," he said.

Aron said CIOs were increasingly looking to increase the amount of strategic IT work they ran in-house. "They are prioritising the IT portfolios to ensure they focus their IT investments more closely and are planning to make cuts that do not damage essential business capabilities."

Last week the analyst firm urged CIOs to prepare a budget by 1 July to prepare their business for a recovery.

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