CIOs not cutting on IT expenditure: Gartner

NEW DELHI: Chief Information Officers (CIOs) around the world are not cutting

down on IT spending despite the economic slowdown. In fact, according to the

study carried out by the Gartner Group of 1,500 CIOs across the world, deploying

IT is increasingly being looked upon as a means to cut down costs.

The study focussed on the three key areas: business trends that were having an
impact on enterprises; short term and medium term IS management priorities; and

IT technology priorities. The study pointed out that the business environment

was getting tougher across all fronts and cost pressures would be the driving

factor for businesses in 2001.

The study also stated that CIOs would be hard pressed during the period to

see that IT delivers on business performance. They may also have four IS

management priorities: provide leadership by linking IS to business strategy;

build capabilities by attracting and retaining quality people; develop the IS

organization as a professional services business and deliver e-business enabling

IT architectures and process management capabilities.

To this end, CIOs will focus on three technology priorities which include

business (e-biz infrastructure, enhanced security, applications, integration);

market capture technologies (CRM, application scaling); and cost control

(network management and desktop management).

Gartner has forecasted ten business trends for 2001, among which cost pressures
ranks at the top followed closely by the shortage of skilled resources.

"Notwithstanding the reports about lay offs, there is going to be a

shortage of skilled professionals. So businesses which ramp up their employee

strength during this time will emerge stronger from the crisis," says

Partha Iyengar, country manager for India and SAARC.

Other trends for 2001 include focus on customer relationship, growing

security and privacy concerns, sustained innovation, increase in demand for

shareholder returns and active management of knowledge capital.

However, Gartner also pointed out three indicators that could spell tighter

economic conditions for businesses during 2001. General cost pressures and

shareholders demand would generally create tougher economic conditions while

shortage of skilled labor, increased customer focus and management of knowledge

capital would make for tougher operating conditions and product cots, growing

security and privacy concerns would spell tougher market conditions for

businesses.

Of the 1,500 CIOs, around 300 were from the Asia Pacific region. Although no

Indian CIO was part of the survey, Gartner believes that the findings of the

study would be relevant to the Indian conditions going by the feedback received

from Indian CIOs.

Says Iyengar, "With the increasing integration of worldwide trends and

with what we have observed in India, we find that the results of this study are

of key relevance to the local scenario and to Indian CIOs."

Meanwhile, Gartner will be organizing Gartner Summit 2001 in New Delhi during

August 7-8. The theme for this year's event will be "Exploiting IT for

Business Transformation" and expects to attract more than 700 delegates.

Targeted at CXOs, business owners, tech vendors, investors and VCs, policy
makers, the summit also promises exclusive one-on-one audiences with Gartner

analysts, if required. There will be three parallel tracks on management,

infrastructure and market dynamics with most of the speakers and content being

from Gartner.