IT Spending: Turning on the Afterburners

News Analysis: Optimism about the economy and anxiety about security are leading companies to increase IT spending, according to this comprehensive report. (

Welcome to the most comprehensive report on IT spending CIO Insight has ever produced.

Unlike previous years surveys, where we tracked only project-related spending on applications and infrastructure, weve asked respondents about any and all spending on these technologies.

Weve also broadened the field to 50 different technologies and services. With 429 respondents holding senior-level IT positions, the result is a full picture of where IT spending is heading in 2007.

/zimages/2/28571.gifClick here to read about why the U.S. Department of Homeland Securitys "cyber-czar" is calling on the IT industry for help.

Were predicting a higher rate of spending growth than Gartner, Forrester Research and IDC; their forecasts for 2007 increases range from 2.8 to 6.5 percent, while we expect a 7.6 percent increase, the largest weve ever reported.

But that shouldnt be surprising, given what weve learned in our recent surveys: CIOs are focusing more on growth and improving service than on cost reduction; the current economic expansion has proved resilient; and security worries and regulations require more purchases toward IT protection.

And as companies make infrastructure investments, they are updating older systems and installing new applications that can take advantage of these investments.

Some of the budgeting falls under the category of spending money to save money: More companies have VOIP (voice over IP) in their budgets than last year. At large companies, outsourcing will take a bite out of IT jobs. But overall, its an upbeat budget picture for upbeat times.

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