IT to play key role in business growth: Gartner
The survey found that worldwide IT budgets are expected to increase by an average of 2.7% in 2006 compared with an increase of 2.5% in 2005 and represents a modest budget increase for the third consecutive year.
Growth is on the CIO agenda as IT budgets at companies planning to grow faster than the market are increasing by an average of 4.8%. Gartner EXP surveyed 1,400 CIOs in more than 30 countries, representing more than US$90 billion in IT spending.
"The survey results make it very clear that business expectations of IT have changed dramatically and executives are expecting their CIOs to move beyond concerns about cost, security and quality to help grow the business," said Marcus Blosch, vice president and research director at Gartner EXP.
"Last year saw the beginning of a transformation that is intensifying in 2006."
The survey found that business process improvement – making a company easier to do business with – is the top business priority for CIOs for the second consecutive year.
In addition, 2006 will see CIOs become more externally focused – helping the business to grow customer relationships, improve competitiveness and increase overall efficiency.
Whilst CIOs are playing an increasingly business-focused role, the responsibility for running effective technology operations remains. Commenting on the fact that business concerns over security breaches and disruptions fell from the second to the seventh ranked priority, Blosch said: "This does not mean that security is no longer an issue.
Rather, it indicates that in 2006 the business expects IT to be secure and is looking to the CIO to keep it that way."
Overall, the survey found that IT spending on security related tools remains healthy at a projected average increase of 4.5% in 2006.
"Business leaders expect CIOs to run an effective technology operation," said Mark McDonald, group vice president and head of research for Gartner EXP.
"With that in place, executives are looking for ways in which IT can make the company more prominent in a competitive market. CIOs are looking to help the business stand out with strategic and innovative use of information, business processes, and intelligence in products and services.
They are looking to use technology tools, rather than buying package solutions, to support competitive difference."
The survey also revealed that CIOs see themselves facing three critical challenges in 2006 – strengthening the ‘information value chain’; building IT business skills; and getting closer to customers.
"Information technology has changed the world and now the world is changing IT as concerns about growth, customers and market needs top the business agenda.
In a world of increasing competition and customer choice, IT is rising to the challenge of making a tangible difference in the business," said McDonald.
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