Some CIOs Eyeing Decrease in IT Spending

A sampling of 100 Chief Information Officers recently surveyed by J.P Morgan found that several plan to lower their IT spending over the near term.

The study found that among those polled, 28 CIOs reported changes to their previous IT spending plans for 2011. Out of those, 24 said they’re eyeing a decrease. Further, 10 out of the 24 currently manage budgets ranging from $500 million to $1 billion. J.P. Morgan believes this change in medium and large budgets could pave the way for further cuts over the near to midterm.

The survey was conducted during the summer when there were significant concerns about the economy and financial markets, and IT spending from government and large enterprises had already started to weaken. Specifically, the survey was conducted in two rounds—one from late July to mid August and another during the first three weeks of September. The second round focused more on the level of increases or decreases to this year’s IT spending plans.

So, what items may be on the chopping block? IT services, printing, and PCs appear to be the most at risk if budgets start to go south. Headcount reductions were also among the top items mentioned, while new projects could also be affected as a result of a downturn.

On the plus side, software, security and server virtualization remain among the top priorities, certainly for the long term. Supporting and integrating tablets and other mobile devices is also on the to-do list for large enterprises, a sign that the consumerization of IT continues to gain traction despite or perhaps because of any decreases in IT budgets.