CIO survey: IT spending projections decline

IT spending projections declined in March, as CIOs predicted spending increases of 5.1% for the next 12 months, down from 5.8% in December, according to the latest US quarterly CIO Magazine Tech Poll.

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IT spending projections declined in March, as CIOs predicted spending increases of 5.1% for the next 12 months, down from 5.8% in December, according to the latest US quarterly CIO Magazine Tech Poll.

Asked about spending across specific IT categories, 48.4% of the 124 respondents said they planned to increase spending in data networking equipment, up from 35.3% in December, while 15.3% said they would decrease spending in that category, up from 13.7% in December.

“Our latest poll results suggest IT spending will be subdued this year, with corporate managers likely concerned about weaker economic growth in 2007,” said Edward Yardeni, president of Yardeni Research.

In other survey results, 46.3% of the respondents said they would increase spending on storage systems, down from 52.9% in December, while 15.7% said they would decrease spending on storage, up from 10.9% in the last quarterly survey.

In addition, 45.5% of the CIOs said they plan to increase spending on computer hardware, down from 55.8% in December, while 17.9% said they intend to decrease spending in this area, up from 11.7% in December.

When asked about the IT labour pool, 7.3% of the CIOs said labour was plentiful, up from 5.8% in December. Some 46% said IT labour was available, down from 56.7% in December and 44.4% said IT professionals are hard to find, up from 35% in December.

“The results of this quarter's poll clearly show the most significant challenge CIOs are facing is retaining good people. It's shocking to consider 44% of CIOs claim IT labour is ‘hard to find and keep,’” said Gary Beach, publisher of CIO magazine.

Asked whether they were likely to consider Google as an enterprise software provider, 46% of the CIOs said they were "not very likely" to consider Google in that capacity, while 27.4% said they were "not at all likely," and 20.2% said they were "somewhat likely".

Of the 124 US CIOs who responded to the March poll, 28% were from companies with 1,000 to 5,000 employees, and 16% were from companies with more than 5,000 employees.

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