IDC: Three in four CIOs retain IT staff and budget in 2009

IDC: Three in four CIOs retain IT staff and budget in 2009

Analyst firm claims many organisations are looking to ramp up IT spending in 2010 to give themselves a competitive advantage as the economy improves

Just one-quarter of Australian organisations have made cuts to IT budgets or staff during the economic crisis, according to IDC’s new industry findings.

In a survey of A/NZ CIOs, IDC found 58.2 per cent of respondents in 2009 believed that IT contributed to the operational capacity of their business, and a further 33.8 per cent viewed IT as a source of competitive advantage.

Looking forward, the top three areas of IT investment over the next year will be systems infrastructure (18.6 per cent), back-office processes such as ERP (16.1 per cent) and front-office processes such as CRM (14.7 per cent).

IDC senior market analyst, Melissa Martin, said when there were cuts, most were made in maintenance fees, with a small drop in hardware, software and outsourcing spend among enterprises. Business services, retail and wholesale and manufacturing were the three verticals hit hardest by a drop in spending. As a result, those businesses were the most likely candidates to put off, or cut, ICT spending, she said.

“People have been looking to make organisational savings for a long time, but this report shows that technology is being viewed as fundamental to a business,” Martin said. “Further, organisations are looking at increasing spending on IT as they prepare themselves for the upswing after the downturn.”

Utilities, banking and construction will be major IT spenders in 2010, Martin said. IDC surveyed 240 Australian and 120 New Zealand CIOs for the survey.

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