50 Technologies: Where CIOs are Spending Their Money

By Allan Alter Print this article Print

Optimism about the economy and anxiety about security are leading companies to increase IT spending.

Welcome to the most comprehensive report on IT spending CIO Insight has ever poduced. Unlike previous years' surveys, where we tracked only project-related spending on applications and infrastructure, we've asked respondents about any and all spending on these technologies. We've also broadedned the field to 50 different technologies and services. With 429 respondents holding senior level IT positions, the result is a full picture of where IT spending is heading in 2007.

View the Slideshow: IT Spending On the Rise

We're predicting a higher rate of spending growth than Gartner Inc., Forrester Research Inc. and IDC; their forecasts for 2007 increases range from 2.8 to 6.5 percent, while we expect a 7.6 percent increase, the largest we've ever reported. But that shouldn't be surprising, given what we've learned in our recent surveys: CIOs are focusing more on growth and improving service than on cost reduction; the current economic expansion has proved resilient; and security worries and regulations require more purchases toward IT protection. And as companies make infrastructure investments, they are updating older systems and installing new applications that can take advantage of these investments.

Some of the budgeting falls under the category of spending money to save money: More companies have Voice over IP in their budgets than last year. At large companies, outsourcing will take a bite out of IT jobs. But overall, it's an upbeat budget picture for upbeat times.

In this feature:
Findings: Spending is Rising Across the Board
Slideshow: IT Spending

This article was originally published on 2007-02-14
Executive Editor

Allan Alter has been a specialist on information technology management, strategy and leadership for many years. Most recently, he was editor-in-chief and the director of new content development for the MIT Sloan Management Review. He has been a columnist and department editor at Computerworld, where he won three awards from the American Society of Business Press Editors. Previously he was a special projects editor, senior editor and senior writer for CIO magazine. Earlier, Alter was an associate editor for Mass High Tech. He has edited two books: The Squandered Computer: Evaluating the Business Alignment of Business Technologies and Redesigning the Firm.

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