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Brief
IT cost reduction and security top priority for CIOs in 2009-10
To commemorate its first anniversary, the CIO Klub (an initiative of CIO Association),
a 256 strong group of CIOs spanning Mumbai, Delhi, Bengaluru, Ahmedabad and
Pune, initiated the Enterprise IT Investment trends Survey 2009 with Ernst &
Young to capture key IT trends and investment patterns across sectors.
The survey findings said that although IT cost reduction is a priority, it will
not necessarily translate into an overall investment reduction. Technologies
that lower cost and/or improve operational efficiency shall continue to be favored
by CIOs; however, their evaluation may be stricter.
97% of CIOs indicated that they were making budget allocations for new IT initiatives
and 62% of the respondents mentioned that their investments could be in the
range of Rs 5-100 million. In the current economic scenario, CIOs are looking
at all aspects of IT to decrease spends and increase operational efficiency
including the implementation of technologies such as green IT, IT virtualization,
mobility/PDA and consolidation.
Pinakiranjan Mishra, Partner, Ernst & Young, stated that the reason for
doing this survey was to understand what impact the recession would have on
Indian IT. The enterprise IT investment trends survey 2009 provide an insight
into CIOs’ strategies, investment plans, new initiatives and priorities
for 2009-10. The trend is clearly towards “Must-have” initiatives
rather than “Good to have” ones.
“Going forward, we believe CIOs will play a pivotal role in helping their
organizations to successfully move ahead by reducing costs and increase organizational
effectiveness through better IT systems. We hope this report fuels ideas and
opportunities for the IT industry,” said Radhakrishna Pillai from the CIO
Klub.
The guest at the event Ajai Chowdhry, Founder and CEO of HCL mentioned, “The
CIO needs to be a business leader, he has to live with the rapid changes in
IT and leverage IT to create value to business. A CIO can be a CEO, finance,
HR, marketing head as he has more information based resources than any person
in the organization.”
- 50% of the CIOs list IT cost reduction
as ‘most important’
- 76% of the CIOs listed information security
as a key concern
- 97% indicated that budgetary allocations
had been made for investing in new IT initiatives
- 36% of the CIOs cited an increase in capital
expenditure and 33% indicated a rise in operating expenditure
- 73% of the CIOs will increase their focus
on Business Continuity Planning/Disaster Recovery Planning
- 64% of the CIOs listed implementing advanced
enterprise applications (CRM/BI/DW) as a priority
- IT consolidation, identified as a key
priority, primarily aims at leveraging existing IT investments.
- Open source fails to attract investment
- Investment in network devices and connectivity
that helps to reduce the overall cost of the organization
- Outsourcing is important for CIOs but
it is restricted to non-core functions
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