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STAMFORD, Conn., May 7, 2014

Gartner Survey Shows One in Four German CIO Respondents Have Adopted Cloud and More Plan to Increase Cloud Investments

Seventy Percent of CIOs Plan to Change Sourcing Strategies in the Next Two to Three Years

One in four German CIOs have adopted cloud, and 70 percent plan to change sourcing strategies in the next two to three years, according to Gartner, Inc. In the fourth quarter of 2013, Gartner's Executive Programs conducted a survey of more than 2,300 CIOs worldwide. In today’s blog post, Frank Ridder, managing vice president at Gartner, examined the responses of the 60 German CIOs who took part in the survey.

Mr. Ridder said: 

Overall the survey results show that the management focus for German CIOs is similar to the rest of the world. However, what has changed from 2013 is an increasing focus on growth and innovation while still prioritizing efficiency. For 2014, the survey found that 4 percent more German CIOs (21 percent overall) will emphasize growth and innovation compared to last year, while 27 percent will continue to focus on efficiency, down 3 percent year over year. Likely reasons for this change are a healthy local economy, the completion of efficiency projects that started in the economic crisis, and the implementation of ongoing efficiency programs. 

Looking at the top three technology priorities for German CIOs in 2014, ERP is the top priority followed by business intelligence/analytics and cloud. The CIOs surveyed reported that public cloud adoption reached 26 percent, which is higher than both the worldwide average (see Figure 1) and that in EMEA, where 23 percent of CIOs said they had made significant cloud investments this year. A quarter of the German companies surveyed have invested in a services solution, with software as a service being of most interest (73 percent). This is followed by infrastructure as a service (47 percent) and platform as a service (33 percent). German CIOs use the cloud primarily to become more agile, and they are less concerned about the advantages of better quality and faster innovation. Based on client conversations and surveys an increasing number of German CIOs are planning to increase cloud investments.

Outsourcing is another sector where Germany is maturing rapidly. There are as many organizations in Germany using outsourcing services as companies that are fully insourced. Approximately half of the German organizations surveyed follow a mixed model, resulting in an adoption rate of 73 percent for outsourcing (defined as 21 percent fully outsourced, and 52 percent as a mixed model). Given that only 12 percent of German organizations plan to decrease their outsourcing spend, and 54 percent plan to intensify their outsourcing endeavors, the market will grow. 

Further changes in sourcing are also expected as 70 percent of German CIOs are planning to change their sourcing strategies in the next two to three years because they need to continue making their IT systems efficient. Shrinking budgets and the need to concentrate on business value at all times are forcing CIOs to embark on different sourcing approaches.

 

Figure 1: Attitudes Toward Public Cloud: Germany Versus Global 
Source: Gartner (May 2014)

 

Mr. Ridder will further discuss the results of the CIO Agenda Survey at the Gartner CIO & IT Executive Summit 2014, June 4-5 in Berlin, Germany. 

More information about the Summit can be found on the Gartner Events Web site

For the media registration please contact Laurence Goasduff at laurence.goasduff@gartner.com.

About Gartner

Gartner, Inc. (NYSE: IT), is the world’s leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities today and build the successful organizations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We are a trusted advisor and objective resource for more than 15,000 organizations in more than 100 countries — across all major functions, in every industry and enterprise size.

To learn more about how we help decision makers fuel the future of business, visit gartner.com.

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