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CIO Magazine IT Economic Outlook Research Shows US IT Investments ReboundingSpending Increases on Mobile/Wireless, Applications, IT Compensation and Network Infrastructure (June 25, 2012)
FRAMINGHAM, MA -- (Marketwire) -- 06/25/12 -- IDG's CIO, the executive-level IT media brand providing insight into business technology leadership, reveals the CIO Magazine IT Economic Outlook results for April 2012. The study shows that IT investments in the United States are rebounding since the economic uncertainty (i.e. downgrading of US bond rating, European economic instability) in August 2011, with half (47%) of organizations increasing their IT budget in the next year, compared to 32% in August. While more organizations are anticipating growth in the next year, budget increases are modest at 3%, compared to 6% a year ago (April 2011).
The survey, completed by more than 200 heads of IT from a range of industries, states that organizations are increasing investments in mobile/wireless (50%), applications (49%) and IT compensation (48%); technology areas that can drive competitive advantage. Over the next three years, investments in "edge" technologies, including mobile, cloud and social, will continue to grow from one quarter (25%) of the IT budget to more than a third (37%). The majority (70%) are increasing mobile investments to improve employee productivity.
Increased investments are a sign that business outlooks are stabilizing. While 38% of organizations said that they never stopped growing during the recession, an additional 39% stated that their organization is stabilizing/returning to growth. Results vary when asked if stock market conditions and individual company valuations impact IT budgets. One third (33%) watch the market very/somewhat closely, 34% not very closely/not at all and 33% are not impacted by stock market conditions.
"This research aligns with what I have been hearing from CIOs across the country. Companies are continuously striving to innovate for competitive advantage and cost savings, and technology is the driver. Additionally, IT executives are looking to reinvest these costs savings back into IT investments," said Adam Dennison, vice president/publisher, CIO. "The focus on and investment in edge technologies -- mobile/consumer devices, cloud, social, apps and more -- will create organizational benefits that are essential for company growth."
Key findings include:
- IT investment is in an upward swing with 47% of companies planning to increase their IT budget in the next 12 months, compared to 32% in August 2011.
- After a dip in August 2011, new project spending has rebounded with a majority (55%) increasing new project spending.
- Mobile/wireless (50%), applications (49%), IT compensation (48%) and network infrastructure (41%) are all seeing a budget increase. In fact, the number of organizations increasing network infrastructure investments grew by 15% since August 2011 and 13% more organizations increased IT compensation.
- IT executives predict that IT spending will shift in the next three years from spending one quarter (25%) of their budget on edge technologies to spending a third (37%). Edge technologies include mobile, CRM, cloud, social and marketing automation. The remainder of budgets will be spent on core technologies (infrastructure, network, storage and ERP).
- The proliferation of mobile has led to the creation of a "bring your own device" (BYOD) policy for half (57%) of organizations. The greatest benefit for mobile device and application usage in the workplace, by a significant margin, is improved employee productivity (70%).
IT decision-makers and solution providers are invited to discuss edge technologies, like mobile, BYOD, social, apps and more at the 2012 IDG Enterprise CITE (Consumerization In The Enterprise) Forum, October 10, 2012 in New York, NY and prepare for the IT spending growth areas.
To review the full results, contact Adam Dennison, VP/Publisher, CIO at [email protected].
About CIO Magazine IT Economic Outlook
The CIO Magazine IT Economic Outlook study is conducted twice a year, among heads of IT, to gauge which technology areas are the focus of IT in the coming year and to measure the direction of spending within those areas. The current CIO Magazine IT Economic Outlook was conducted between April 9, 2012 and April 23, 2012 through the CIO Forum on LinkedIn and the CIO customer database. Results are based on 200 respondents who indicated they are the top IT executive at their company or business unit.
CIO produces award-winning content and community resources for information technology executives and leaders thriving and prospering in this fast-paced era of business, as well as creates opportunities for information technology and consumer marketers to reach them. The CIO portfolio includes CIO.com, CIO magazine (launched in 1987), CIO Executive Programs and the CIO Executive Council. CIO properties provide business technology leaders with analysis and insight on information technology trends and a keen understanding of IT's role in achieving business goals. The U.S. edition of the magazine and website are recipients of more than 200 awards to date, including the American Society of Business Publication Editor's Top B-to-B Magazine since 2000 and Website of the Year in 2010 and two Grand Neals from the Jesse H. Neal National Business Journalism Awards. CIO websites and printed publications appear in more than 25 countries, including Australia, Canada, Finland, India and Sweden. CIO Executive Programs -- a series of face-to-face conferences including the CIO 100 Awards & Symposium -- provide educational and networking opportunities for pre-qualified corporate and government leaders. The CIO Executive Council is a professional organization of CIOs created to serve as an unbiased and trusted peer advisory group. CIO is published by IDG Enterprise, a subsidiary of International Data Group (IDG), the world's leading media, events, and research company. Company information is available at www.idgenterprise.com.
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