CIOs not prepared for digitization

Networks Asia Staff
17 Jan 2014

Most CIOs do not feel prepared for the era of digitization, according to a global survey of CIOs by Gartner's Executive Programs.

The survey showed that many CIOs feel overwhelmed by the prospect of building digital leadership while renovating the core of IT infrastructure and capability for the digital future.

More than half (51%) of CIOs are concerned that the digital torrent is coming faster than they can cope with and 42% don't feel that they have the talent needed to face this future, the findings show.

The survey was conducted in the fourth quarter of 2013 and covered 2,339 CIOs in 77 countries, representing more than $300 billion in CIO IT budgets.

"2014 will be a year of dual goals -- responding to ongoing needs for efficiency and growth, but also shifting to exploit a fundamentally different digital paradigm. Ignoring either of these is not an option," said Dave Aron, VP and Gartner Fellow.

Despite the need to grow, there is pressure on IT budgets, Aron observed. The survey showed CIOs expect their IT budgets to remain essentially flat -- increasing 0.2% on average -- in 2014. “This is especially challenging since there is a need to both renovate the core of IT systems and services, and exploit new technology options.”

Respondents report that a quarter of IT spending will happen outside the IT budget in 2014 — and that is the spending they know about. The reality may be significantly higher.

For 2014 and beyond, CIOs are planning for significant change, with a quarter having already made significant investments in public cloud and the majority expecting more than half of their company's business to be running over public cloud by 2020.

Around 70% of CIOs also plan to change their technology and sourcing relationships over the next two to three years, and many are seeking to partner with small companies and startups.

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