Worldwide IT budgets to decline 4.7%: Gartner

In the first quarter of 2009, CIOs experienced significant IT budget revisions as executives gained a greater understanding and solidified plans for addressing the global financial crisis, according to a worldwide survey of 900 CIOs by Gartner Executive Programs (EXP).

The survey was conducted from March 1 to April 30 2009 and sought to gauge the potential impact of macroeconomic concerns on IT budgets. These CIOs encompass more than US$77bn in revised IT spending. Forty-six% of respondents said that their 2009 IT budget had changed since it was finalized. The results of this survey were compared with the results of the Gartner EXP 2009 CIO Survey, conducted from September to December 2008, which had more than 1,500 responses.

CIOs in the original survey reported a flat budget with a minor increase of 0.16%. CIOs responding to the survey in the first quarter now report a weighted average decline of 4.7%. More than 90% of firms changing their budgets made a reduction in the first quarter, with the average reduction being 7.2%. Fifty-four% of respondents reported no change in their IT budget, with the remaining 4% reporting an increase in their IT budget.

"CIOs reported that renegotiating vendor contracts and head count reductions were the primary focus areas for accommodating budget reductions," said Mark McDonald, group vice president and head of research for Gartner EXP. "CIOs report shifting more work to in-house resources and delaying capital expenditures more than reducing IT project investments.".