Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management

    Survey: IT Tightens Budget Belt

    By
    Allan Alter
    -
    February 27, 2006
    Share
    Facebook
    Twitter
    Linkedin

      Editors note: This is the first in a monthly series in which eWEEK excerpts original IT research from its sister Ziff Davis Media publication, CIO Insight.

      From a distance, it appears that IT spending is on track for growth. But behind the numbers, CIOs are troubled about the bottom line.

      According to the findings of the 2006 CIO Insight IT Spending Survey, budgets are up by 5.4 percent over last year. Thats a slightly larger increase than last years 5 percent. Plus, more than 70 percent of respondents believe they will find more funds for their projects during the year .

      So CIOs ought to feel reasonably confident about spending levels, right? Then why are more CIOs concerned that IT budgets are insufficient to meet strategic goals this year than they were last year?

      /zimages/1/28571.gifSupply chain spending is on a roll. Click here to read more.

      Heres the problem: As the economy grows, companies want to improve revenues, not just cut costs. That pressures CIOs to pursue a wider variety of IT projects this year.

      Spending on many categories of hardware and systems is flat or down, the survey noted, as companies keep trimming costs by consolidating systems, replacing legacy systems, investing in virtual servers and storage, adopting open source and VOIP (voice over IP), and hiring outsourcers.

      For instance, according to the CIO Insight research, CIOs say they are spending 55 percent of their budgets on maintaining ongoing operations and 24 percent on launching new projects .

      The net result? CIOs must continue to do more with less—or, rather, do much more work with just slightly more money.

      “Our project list is enormous,” agreed Eric Bloom, vice president of IT at Endo Pharmaceuticals, a $615 million maker of pain medications in Chadds Ford, Pa. While the budget is increasing, the IT head count is only 27.

      Although executives expressed worry about spending too much on IT, they seemed afraid of spending too little on business continuity and security.

      At the same time, CIOs fear losing skilled workers. The largest increase in spending this year is on training and development.

      “Training leads to retention,” said J. Michael Gabbei, who, as the CIO of Celadon Trucking Services, a subsidiary of Celadon Group, a $437 million transportation company in Indianapolis, is increasing his training budget.

      /zimages/1/28571.gifClick here to read the full report on CIO Insight.

      Allan Alter is Executive Editor of CIO Insight.

      /zimages/1/28571.gifCheck out eWEEK.coms for the latest news, reviews and analysis on IT management from CIOInsight.com.

      Allan Alter
      Executive EditorAllan Alter has been a specialist on information technology management, strategy and leadership for many years. Most recently, he was editor-in-chief and the director of new content development for the MIT Sloan Management Review. He has been a columnist and department editor at Computerworld, where he won three awards from the American Society of Business Press Editors. Previously he was a special projects editor, senior editor and senior writer for CIO magazine. Earlier, Alter was an associate editor for Mass High Tech. He has edited two books: The Squandered Computer: Evaluating the Business Alignment of Business Technologies and Redesigning the Firm.

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×