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| Gartner Predicts the Zero Budget CIO |
| IT spend outside of the IT department to rise to 50 Percent by 2005 |
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Gartner Spring Symposium, Florence, Italy 9 April 2002 - Speaking at its 3rd Spring Symposium in Florence this week, Gartner today said IT spend outside of the IT department is growing. In a survey conducted by Gartner in Europe last month, it said 37 percent of businesses reported IT spend outside of the IT budget. Gartner predicts that by 2005, 50 percent of total IT spend will take place outside of the IT department. Gartner said where this is a conscious strategy and a result of technology being recognised as a business enabler, this is to be applauded. However, it warned that unless CIOs achieve the same recognition as other executive leaders, businesses will lose control of their IT strategy and fail to achieve the fusion between business and IT strategies that is essential in the connected economy.
John Mahoney, Vice President and Research Director at Gartner said, "The CIO is facing a real prospect of becoming a 'zero budget CIO' by the end of the decade. This does not reflect a decrease in stature, it reflects irreversible changes in the business environment which the CIO must meet head on. Gartner said CIOs are facing mounting pressure from several directions. As businesses increasingly realise they must focus on core capabilities, there are corresponding changes in the way companies acquire capabilities and resources. Gartner said that less than 15 percent of business process outsourcing contracts, one of the fastest growing parts of the services sector, are signed by CIOs. At the same time, the CIO has faced some loss of confidence from the business in IT's ability to deliver business benefits, following the e-business hype. Gartner said CIOs urgently need to build credibility for themselves and their departments. "The challenge for CIOs is to define and deliver a sustainable value proposition from the IT organisation to the enterprise in an environment with increasing turbulence in technology, business and the economy," said Mahoney. "That value will centre more on leadership and service integration and less on creation of technology. That doesn't mean the end of the CIO as a distinct role, but it does mean that major changes lie ahead." Gartner said he single most important CIO success criteria lies in developing leadership and soft skills, such as the right behaviours, to influence and get buy in from other parts of the business. Gartner has, through its ongoing work with the CIO community, identified a 'CIO Success Cycle', which includes four key behaviours that determine the success of a modern day CIO. It advised CIOs and those who recruit them to ensure that the IT leadership team use and develop these behaviours. Success Criteria for the Modern Day CIO:
Gartner's Symposium/ITxpo is a global event run in Australia, Japan, the US and Europe. It is the IT industry's largest and most strategic conference, providing business leaders with a look today at the future of IT. For more than 10,000 IT professionals from the world's leading enterprises, Gartner's Symposium/ITxpo are key components of their annual planning efforts, and a place to gain insights into how their organisations can use technology to address business challenges and improve operational efficiency. About Gartner, Inc. Gartner, Inc. is a research and advisory firm that helps more than 11,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut and consists of 4,300associates, including 1,200 research analysts and consultants, in more than 90 locations worldwide. The company achieved fiscal 2001 revenues of $952 million. For more information, visit www.gartner.com. |
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Contact: Laurence Goasduff Gartner +44 1784 267 195 laurence.goasduff@gartner.com |
Contact: Ray Pinto August.One +33 1 45 08 08 43 ray.pinto@augustone.com |
