Chief information officers expect their 2009 technology budgets to fall roughly 2.3 percent but are spreading the pain: Executives expect better pricing from their key vendors.
Bottom line: If you have budget--and are willing to spend it--deals abound, according to Citi's quarterly CIO survey.
First, the high-level findings. Citi surveyed 200 CIOs evenly split between the U.S. and Europe. The survey, which was conducted mid-Nov. to mid-Dec., expect budgets to fall for the first time in five years. U.S. CIOs are expecting IT budgets to fall 2.7 percent in 2009 and their European counterparts see a slide of 1.9 percent. Click to enlarge all charts.
Other key threads:
Only 21 percent of CIOs expect their budgets to grow in 2009;
28 percent of CIOs said they underspent their 2008 budget;
40 percent of U.S. CIOs expect their company to be worse off 12 months from now;
Only 17 percent of CIOs expect the global economy to improve in the next 12 months.
There's downside to Citi's IT spending projections since 28 percent of U.S. CIOs see their budgets down 28 percent.
Security, server consolidation and PC upgrades are in. IT outsourcing, BPO and transitioning to Vista are clearly out.
Storage and services will be the first two items to be cut in budget battles.
U.S. CIOs are getting pricing concessions on PCs, servers and telecom servers. In Europe, CIOs are squeezing server, security and application development vendors.