IT budgets to rise in 2013

CIOs across Europe are predicting their IT budgets will increase by an average of 2% in 2013, despite the downturn. But investment on capital projects will slow, as operational spending assumes higher proportion of the IT budget, research by business advisory firm reveals.

CIOs will use 2013 to invest in high-return projects to improve employee productivity, collaboration and mobility, the survey of 180 companies with combined IT budgets of $52 billion shows. IT departments are moving away from traditional process automation projects towards more strategic business intelligence, collaboration and customer-facing technologies,.

54% of IT organisations plan to increase their spending on public cloud services in 2013 in a drive to make the IT department more flexible and efficient. Software-as-a-service will account for the greatest spending, followed by infrastructure-as-a-service. Platform-as-a-service is a small, but increasing part of companies’ cloud portfolio.

Some 75% of IT organisations plan to invest in developing mobile applications next year, reflecting the growing interest in companies giving their employees access to work-based systems on the move.

Despite the efforts by CIOs to free-up cash for innovation, mandatory spending and maintenance work still makes up most of the IT budget. On average, more than two thirds of IT spending is allocated to maintenance and mandatory spending. CIOs will need to work hard to find to prioritise the demands of their business next year, given the relatively modest rise in spending.

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