CIOs shift focus to IT services in 2005: Gartner

Speaking at an Australian Information Industry Association (AIIA) business briefing, Hayward said that Gartner's research indicates CIOs are "leading a transformation from enablement to contribution."

Over the past three years, the primary agenda for most CIOs has been on cost reduction. However, Hayward says Gartner surveys indicate a shift toward finding "high-quality IT services in line with business cost expectations, increasing the quality and use of intelligence in processes, products and services, and improving, integrating and innovating business processes."

Hayward explains that rather than concentrating on cost reductions, Gartner surveys are showing that the primary priority for CIOs this year will be "delivering projects that enable business growth, followed by linking business and IT strategies."

Gartner's research goes on to say that IT services will continue to dominate in 2005, with an estimated AU$17.7 billion expected to be spent in Australia in 2005 -- a 9.4 percent increase on 2004. The telecommunications segment, Hawyard says, will enjoy a predicted growth of 12.9 percent in 2005, with spending increased to an estimated AU$13.9billion.