Chief information officers (CIOs) expect IT budgets to increase by 2.5% in 2005, and believe their focus will be on supporting business growth and results, according to a survey by research firm Gartner`s Executive Programs (EXP).
Gartner reports that in the past few years, CIOs have had to focus on internal efficiency and cost control, while preparing their organisations for an economic upswing. The new survey shows that CIOs are concerned about their relationships with company CEOs and about whether they have the right people to meet current and future business needs.
Gartner EXP surveyed more than 1 300 CIOs representing $57 billion (R324 billion) in IT spending, in more than 30 countries. It presented the findings from the survey in the report, Delivering IT`s Contribution: The 2005 CIO Agenda.
Sectors covered by the survey include manufacturing, financial services, public sector, consumer products and services, professional services, hi-tech and communications, utilities and chemicals, healthcare and education.
"Business expectations are now forcing CIOs to transform the IS organisation and 2005 is the year in which CIOs must deliver more value and become a contributor rather than a commodity," says Marcus Blosch, group VP and research director for Gartner EXP.
Gartner says contributing to business growth starts by providing secure, high quality and cost-effective IT services. This is mandatory and a baseline for IT`s credibility. It is reflected in the top technology priorities for 2005, where security features at the top of the list.
[TABLE]The research company says CIOs expect the most significant shift in 2005 through 2008 to be a new focus on enabling better business processes and strategic use of business intelligence. This shift will be driven by increasing pressure for greater profitability, faster innovation and growth.
CIO challenges in 2005
Gartner says CIOs feel they face three critical challenges for 2005:
1. CIO/CEO relationship: Two-thirds of CIOs see themselves as 'at risk` based on the CEO`s view of IT and its performance. To address this, CIOs need to raise and stabilise the quality of IT services and provide measures that clearly demonstrate the contribution of those services and their ability to deliver growth.
2. People and skills: Only 39% of CIOs believe they have the right people to meet current and future business needs. Additionally, only 20% of CIOs who put business process improvement in the top five priorities for 2005 believe the IS organisation has the necessary skills to implement this.
3. Attracting the right skills and people to upgrade the IT leadership team is becoming a key challenge for CIOs in 2005. For those on the leading edge, it often involves revamping the leadership team toward an office of the CIO.
Top 10 business and technology priorities in 2005
[TABLE]
Source: Gartner EXP (January 2005)
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