IT investments rebound

IT budgets are on the rise, thanks to renewed economic confidence and growing demand for innovative technologies such as mobile, social media, and cloud computing.

Nearly half of CIOs reported IT spending increases slated in April 2012, up from only 34 percent in August 2011 but six percentage points below an April 2011 survey, according to CIO. Only one in five IT chiefs expects budget cuts in the near future.

“CIOs at larger enterprises—those with 1,000 or more employees—will take the lead in IT spending plans for mobile/wireless and applications compared to their SMB counterparts: mobile/wireless (61 percent versus 40 percent) and applications (57 percent versus 42 percent), respectively,” writes Lynn Haber in CIO. “Survey respondents not only expect advances in technology and new emerging IT models to change the way employees work but anticipate the need to make significant changes to their IT organization’s staff roles.”

State-of-the-art technologies will increasingly drive IT spending and staff hiring. Industry observers expect IT dollars to migrate away from core technologies such as infrastructure and toward mobile, social media, and cloud computing opportunities. The shift will also mean less investment in hardware as CIOs direct funding toward outsourced services.

For an industry segment hit hard by the late-2000s recession, the early 2010s may finally be looking up.

Lee Simmons

Lee Simmons is a business writer in Austin. He covers the technology and media industries for Hoover's and offers random musings on the state of entertainment (among other pressing issues) for Bizmology. Follow him at Twitter.

Read more articles by Lee Simmons.

Leave a Comment