Slideshow: The New Economics of IT, Part II
The Australian CIO Executive Council polled 121 top local IT executives and found that the current economic crisis is taking its toll on Australian IT departments, with many of them preparing contingency plans and reassessing their current 2009 budget plans.
There’s some bad news for the beleaguered IT manufacturers. When asked what shifts they anticipated in various budget categories over the next 12 months, CIOs tabbed hardware and software expenditure as the most likely options for decreased spending.
Almost half of the CIOs surveyed said they intended to decrease the percentage of the total IT budget allocated to new projects. Of those anticipating reductions, the average percentage decrease is 25%.
When asked if they were considering alternative IT models, such as SaaS and online services, three out of five CIOs said they were not planning to do so.
More than half of Australia’s CIOs are already operating under a contingency plan. That number will rise to 68% as those who are planning to implement one put theirs in place.
While the weakened business environment is wreaking havoc with budgets and projects, Australia’s CIOs have chosen to maintain service levels and find their economies elsewhere. An impressive 83% indicate that they have no intention to reduce service levels.
The razor gang is out and IT under projects are getting a close examination. Three out of four CIOs said they have already reviewed IT project plans to save cash or will do so in the next six months.
Budget approval! What budget approval? Seven out of 10 Australian CIOs have reassessed this year’s budget or plan to do so soon.