CIO survey: IT spending projections on the rise

After dipping slightly in September, IT spending projections are on the rise, according to the October CIO magazine Tech Poll. In the latest survey, CIOs predicted spending growth of 8.7 per cent during the next 12 months, up slightly from the previous month’s projected spending increase of 7.4 per cent. The magazine surveyed 241 CIOs in October.

“It was encouraging that (even though) we had a month when budgets tend to be cut a little bit … this didn’t happen in October,” said Gary Beach, group publisher at CIO. “It seems that CIOs are winning the battle with the other ‘O’s’ in terms of getting funding for next year.”

Beach said he is encouraged that 36 per cent of all the respondents in the poll claimed that their spending would rise next year by 10 per cent or more. “That’s pretty good,” he said. “To put this in context, this is the strongest October we’ve had since October 2000.”

Spending priorities indicate that security software, data networking and computer hardware are the top issues for CIOs, according to the poll.

The survey also found that nearly half of all respondents, 48.5 per cent, have no plans to implement a voice-over-IP plan in the next 12 months.

When asked about spending in eight specific IT categories, the average number of panelists planning to increase spending rose to 45.1 per cent in October, up from 43.7 per cent in September. Those planning to decrease spending fell to 12.9 per cent from 14 per cent in September.

Security software was again the strongest sector in the poll, with roughly 63.5 per cent of respondents planning to increase spending in that area, down slightly from 65.1 per cent who said that in September.

Spending on data networking equipment increased to 51.5 per cent in October, up from 42 per cent in September, making it the second-highest spending priority of CIOs in this month’s poll.

The October results showed that 51.3 per cent of panelists plan to increase spending on computer hardware, up from 49.6 per cent in September, while 14.6 per cent plan to cut hardware spending. That’s down just slightly from the 15.5 per cent who said in September they planned to cut computer hardware spending.

Each month, CIO magazine surveys a panel of IT executives on current and future IT spending and other IT issues. The survey is done in partnership with Ed Yardeni, chief investment strategist at Oak Associates Ltd., and Deutsche Bank Securities Inc.

The latest poll was conducted from Oct. 7 to Oct. 18. Eighteen per cent of the responses came from executives at companies with more than 5,000 employees. Related Articles:

Related Download
CanadianCIO Census 2016 Mapping Out the Innovation Agenda Sponsor: Cogeco Peer 1
CanadianCIO Census 2016 Mapping Out the Innovation Agenda
The CanadianCIO 2016 census will help you answer those questions and more. Based on detailed survey results from more than 100 senior technology leaders, the new report offers insights on issues ranging from stature and spend to challenges and the opportunities ahead.
Register Now