Press Release

Newsroom

SYDNEY, Australia, October 27, 2021

Gartner CIO Survey Reveals “Cybersecurity Tax” is Hindering Investment in Future Progress for Australian and New Zealand Organizations in 2022

Analysts Explore the Gartner 2022 CIO and Technology Executive Agenda at Gartner IT Symposium/Xpo 2021 APAC, 25-27 October

Seventy-three percent of Australian and New Zealand (ANZ) CIOs said they will spend more on cybersecurity in 2022 than they did in 2021, as greater regulation and threats increase leadership focus on security, according to Gartner, Inc.’s annual global survey of CIOs and technology executives. This is up from 67% in 2021, overtaking data analytics which topped the list last year, and compares to 66% of CIOs globally.

The 2022 Gartner CIO and Technology Executive Survey gathered data from 2,387 CIO and technology executive respondents in 85 countries, including 114 CIOs in ANZ across the public, private and non-profit sectors. Gartner analysts presented the survey findings during Gartner IT Symposium/Xpo APAC, which is taking place virtually this week.

“This continuing need to invest heavily in cybersecurity in ANZ is creating a cybersecurity “tax”, hindering progress in other areas by redirecting investments that could be used for future innovation – a risk-based approach is needed to make sure organizations are not spending too much,” said Andy Rowsell-Jones, distinguished research vice president at Gartner.

The survey also revealed that mastering business composability makes CIOs and other technology executives better prepared to deliver business value during this period of volatility and beyond.

Business composability is the mindset, technologies, and set of operating capabilities that enable organizations to innovate and adapt quickly to changing business needs. It is built on applying the principle of modularity to business assets to achieve the scale and pace required for growth.

Only 4% of respondents in Australia and 6% globally were rated as ‘highly composable’. Sixty-three percent of CIOs at highly composable organizations reported superior business performance compared with peers or competitors in the past year.

“Australian leaders tend to think of business composability as being an IT thing, instead of a mindset change across the business,” said Rowsell-Jones. “Being a composable business means investing in flexibility and agility, putting in place a modular structure that enables assets to be reconfigured to suit conditions. This offers enormous value, but there’s a lack of pressure for organizations in ANZ to change.”

2022 IT Budget Growth and Spending Plans

According to the survey, IT budgets in ANZ are expected to grow at the fastest rate in over 10 years, with an average growth of 3.1% in overall IT budget for 2022, an increase from 2% in 2021. This is compared to a 3.6% increase globally for 2022.

While cybersecurity is at the top of the list of planned investments for 2022, this is followed by business intelligence/data analytics (58%), integration technologies and APIs (45%), cloud platforms (44%) and digital business transformation (38%).

“This increase in IT budgets means CIOs and technology executives have a greater choice of where to invest,” said Rowsell-Jones. “Without big deficits to remedy elsewhere, they can afford to invest in composability, especially for developers and business architects who can design in a composable manner, as well as invest in packaged business capabilities.”

Distributed cloud (52%) is the leading emerging digital technology that enterprises in ANZ have already deployed or plan on deploying in 2022, followed by artificial intelligence (AI) (35%), edge computing (33%), secure access service edge (SASE) (27%) and 5G (27%). These technologies are a catalyst for business composability because they enable modular technology capabilities.

Technologies set for the biggest decrease in investment by ANZ CIOs and technology executives in 2022 include legacy infrastructure and data center technologies (50%), application modernization (22%) and enterprise resource planning (ERP) (11%).

Digital Progress Continues

In the 2021 Gartner CIO and technology executives survey, ANZ survey respondents reported significant changes in the use of digital channels to reach customers or citizens, and demand for new digital services.

This trend will continue in 2022, with ANZ survey respondents citing, on average, almost a quarter of their total revenue is now attributed to digital and more than 50% of enterprise processes have been made more efficient.

More information can be found in “The 2022 CIO and Technology Executive Agenda: Master Business Composability to Succeed in Uncertain Times.”  

About Gartner IT Symposium/Xpo

Gartner IT Symposium/Xpo 2021 is the world's most important gathering for CIOs and other IT executives. IT executives rely on these conferences to gain insight into how their organizations can use IT to overcome business challenges and improve operational efficiency. Follow news, photos and video coming from Gartner IT Symposium/Xpo on the Gartner NewsroomSmarter With Gartner, on Twitter using #GartnerSYM, Instagram, Facebook and LinkedIn.

Upcoming dates and locations for Gartner IT Symposium/Xpo include:

November 8-11 | EMEA | Virtual

November 16-18 | Japan | Virtual

November 30-December 2 | India | Virtual

About the Gartner Information Technology Practice

The Gartner IT practice provides CIOs and IT leaders with the insights and tools to drive the organization through digital transformation to lead business growth. Additional information is available at www.gartner.com/en/information-technology. Follow news and updates from the Gartner IT practice on Twitter and LinkedIn.

Contacts


About Gartner

Gartner, Inc. (NYSE: IT) delivers actionable, objective insight to executives and their teams. Our expert guidance and tools enable faster, smarter decisions and stronger performance on an organization’s most critical priorities. To learn more, visit gartner.com.