CIO spending priorities for 2010 – Business Process Improvement, Reduce Operational Cost
DATE: Jan 19th, 2010
According to a recent report published by Gartner where they survey CIO’s of around 1,600 companies across corporate and public sector companies in the US, 2010 IT budgets will remain FLAT. According to the survey a marginal increase of 1.3% is expected in IT budgets . This compared to a decline of 8.1% in 2009 relative to 2008.
The survey confirms the fact that reducing operating cost and leveraging business process initiatives to gain more efficiency continues to be the focus for IT organizations. Cloud computing and Virtualization are the two highest priority technology initiatives according to the survey.
A number of firms are still firming up their 2010 IT budgets and should be expected to get them done by end of Feb. The survey does provide the fact that directionally reducing cost and becoming more efficient still are the key priorities for IT. To become a strategic partner with the business continues to be an ongoing and top priority for the IT leaders and in some verticals like Retail, High tech, Media this is an essential survival skill given the the shift of business model. The new business models required to grow or just survive in the changing landscape for some of these industries, do bring IT leadership and execution to the decision making table and a number of IT leaders are becoming business experts as the businesses is forced to ramp up their IT learning curve.
The lack of dollars should also see the Operations, IT groups continue to get more integrated as skills requirement transcends internal corporate silos.
Mohit Sharma is the CEO of Corrystone Global Partners. Corrystone is a specialized outsourcing advisory firm providing consulting, staffing and training services to small & mid size firms and state government agencies. We work with small & mid size firms and state government agencies which are exploring low cost options for IT, Business Process work and looking at ways to further optimize cost and manage operational risk. Contact us at info@corrystone.com to learn more about how we could help you with your outsourcing intiatives.
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