IT spending projections declined in March, as CIOs predicted spending increases of 5.1 percent for the next 12 months, down from 5.8 percent in December, according to the latest quarterly CIO Magazine Tech Poll.
Asked about spending across specific IT categories, 48.4 percent of the 124 respondents said they planned to increase spending in data networking equipment, up from 35.3 percent in December, while 15.3 percent said they would decrease spending in that category, up from 13.7 percent in December.
"Our latest poll results suggest IT spending will be subdued this year, with corporate managers likely concerned about weaker economic growth in 2007, said Edward Yardeni, president of Yardeni Research.
In other survey results, 46.3 percent of the respondents said they would increase spending on storage systems, down from 52.9 percent in December, while 15.7 percent said they would decrease spending on storage, up from 10.9 percent in the last quarterly survey.
In addition, 45.5 percent of the CIOs said they plan to increase spending on computer hardware, down from 55.8 percent in December, while 17.9 percent said they intend to decrease spending in this area, up from 11.7 percent in December.
When asked about the IT labor pool, 7.3 percent of the CIOs said labor was plentiful, up from 5.8 percent in December; 46 percent said IT labor was available, down from 56.7 percent in December; and 44.4 percent said IT professionals are hard to find, up from 35 percent in December.
"The results of this quarter's poll clearly show the most significant challenge CIOs are facing is retaining good people. It's shocking to consider 44 percent of CIOs claim IT labor is 'hard to find and keep,'" said Gary Beach, publisher of CIO magazine.
Asked whether they were likely to consider Google as an enterprise software provider, 46 percent of the CIOs said they were "not very likely" to consider Google in that capacity, while 27.4 percent said they were "not at all likely," and 20.2 percent said they were "somewhat likely."
Of the 124 CIOs who responded to the March poll, 28 percent were from companies with 1,000 to 5,000 employees, and 16 percent were from companies with more than 5,000 employees.