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Infrastructure Slideshow:
Enterprise IT Spending 2010

By Dennis McCafferty on 2010-12-27


As Q4 2010 draws to a close, CIOs may be breathing a little bit easier when it comes to the state of their budgets in the year ahead. The emphasis, though, is on “a little bit” here. A survey from Forrester Research Inc. of 2,800 global CIOs and other IT decision-makers reveals that enterprise technology budgets are trended upward, albeit every so slightly, in 2010 compared with 2009. That said, the vast majority of survey respondents say their budgets remained the same in 2010 as they were in 2009. Many of the dollars that are being spent are going towards supporting existing operations, as well as paying for staff. Which isn't to say that CIOs aren't investing a fair share of their budgets toward new IT initiatives/projects. But it's clear that, in times like these, the focus is on what Forrester dubs the “MOOSE” part of the budget – spending to Maintain and Operate the Organization, Systems and Equipment. At the very least, companies spent above what was planned in 2010, and this pattern should continue in 2011: a conservative formal budget that gives way to above-budget spending in practice. The full report may be purchased at www.forrester.com/go?docid=57508. Here are some of the survey's highlights:

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About one-thirdAbout one-third of respondents say IT capital spending increased by at least 5 percent in 2010.

23 percentNearly 23 percent of respondents say IT capital spending decreased by at least 5 percent in 2010.

42.6 percent42.6 percent of respondents say IT capital spending remained the same in 2010 as it was in 2009.

38 percentJust over 38 percent of respondents say total IT spending increased by at least 5 percent in 2010.

Nearly one-quarterNearly one-quarter of respondents say total IT spending decreased by at least 5 percent in 2010.

37.4 percent37.4 percent of respondents say total IT spending in 2010 remained the same as in 2009.

53 percentJust under 53 percent of tech budgets in 2010 were allocated for ongoing operations/maintenance.

29 percent29 percent of tech budgets in 2010 were allocated for new IT initiatives/projects.

18 percentJust over 18 percent of tech budgets in 2010 were allocated for expansion of capacity to support business growth.

32.1 percent32.1 percent of IT dollars in 2010 were spent on full-time tech staffing expenses.

19 percent19 percent of IT dollars in 2010 were spent on the cost of software.

18.8 percent18.8 percent of IT dollars in 2010 were spent on hardware / infrastructure purchases.

13.8 percent13.8 percent of IT dollars in 2010 were spent on third-party IT services purchases.

13.1 percent13.1 percent of IT dollars in 2010 were spent on the purchase of telecom and network services.

Top Five CIO technology priorities 1. Consolidate IT infrastructure2. Significantly upgrade disaster recovery/business continuity3. Expand use of mobile tech for employees, customers4. Significantly upgrade the security5. Implement or expand use of collaborative capabilities.

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