Eighty-five percent of chief information officers (CIOs) see significant change coming over the next three years as they look to meet rising business expectations for IT to make the difference in their enterprise strategy, according to a worldwide survey of 1,500 CIOs by Gartner Executive Programs (EXP).
CIOs are in a strong position to lead in making the difference. CIO tenure has stabilized at an average of four years and four months, giving CIOs ample time to work with executives to transform their enterprises. In addition, more than half of CIOs report having responsibilities outside of traditional IT, reflecting their enhanced business leadership position. The most common additional responsibility is related to business process improvement.
While overall IT effectiveness continues to climb, CIOs face challenges in their people, their processes and IT performance. Only 27 percent of CIOs believe that they have the right number of skilled people to meet business needs. That is impacting both IT performance and IT's support for enterprise strategies.
Web 2.0 and social computing are on the rise according to CIOs. Half of companies increasing their investment in Web 2.0 are doing so for the first time. Social computing is rapidly becoming a way that IT can play a direct role in making the difference to the customer and the market.
Worldwide IT budgets are expected to increase by an average of 3.3 percent in 2008, up slightly from 2007. Enterprises are willing to invest in IT that delivers distinctive solutions. IT budgets at these companies are growing at a rate of 4.9 percent on average, compared with IT budgets at generic IT shops, which will rise an average of 3.1 percent.
Improving business processes was the No. 1 business priority for the fourth consecutive year. Creating new products or services (innovation) moved from being the No. 10 priority in 2007 to the No. 3 priority for 2008. Business intelligence was the No. 1 technology priority for the third year in a row.
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