• silicon.com
• Management
• CIO Insights

By Andy McCue, 8 July 2004 12:20

NEWS Business confidence in IT is improving but technology is still failing to deliver long-term value, according to a survey of CIOs.

Out of the 175 CIOs questioned worldwide, 85 per cent said the perception of IT in the business has improved. But the results show many organisations are still struggling to demonstrate and deliver returns on new investment in IT.

Almost two-thirds of CIOs agreed that IT projects should only be linked to business need but only a third admitted to producing clear business cases before embarking on any IT projects.

More damningly, most CIOs do not have confidence in the ability of their firm to manage project risks, with only 21 per cent claiming they manage the risks arising from business change well.

The ability of CIOs to deliver cost savings also varies wildly. While three-quarters reported savings from contract renegotiations, savings on replacement systems and best of breed packages were much lower at 47 per cent and 28 per cent respectively.

The Getting out of the cost box survey was carried out by PA Consulting. David Elton, senior IT strategist at PA Consulting, said in the report: "If CIOs are to live up to the higher level of confidence they currently command, they need to do more than control their IT spend. If they don't work out how to define and deliver on the business case for new IT – and our survey says they haven't – they risk another cycle of business disaffection."