Magazine for Senior Financial Executives: CIOs predict climatic shift

CIOs predict climatic shift

Last month, Forrester Research released the results of its latest quarterly CIO Confidence poll, and the numbers suggest widespread optimism about the economy and a concomitant rise in IT spending. For the first time in three quarters, more than half of the 195 respondents said they consider the business climate for their particular industry to be strong or very strong. Asked to look ahead three quarters, 71 percent said they expect conditions to improve further, up from 63 percent who felt that way three months ago. That appears to be translating into higher IT spending, as 39 percent reported that actual IT spending will outpace what’s been budgeted over the next three quarters. In the first quarter of 2004, only 25 percent expected to outspend the budget.

Looking to 2005, two-thirds of respondents expect IT budgets to increase, while 27 percent expect them to stay flat and the remainder expect a cut or aren’t sure. Among the industries expecting the biggest increases are retail/ wholesale, averaging a 9.2 percent rise, and manufacturing, an 8.5 percent increase.

COPYRIGHT 2004 CFO Publishing Corp.

COPYRIGHT 2004 Gale Group