By Jo Best, 2 October 2009 09:27
NEWS
The recession is turning the UK's CIOs into tech cowards.
According to new research, the recession is causing IT chiefs to shy away from seizing on new technology, despite suffering tech woes as a result of outdated kit.
Only one in 10 CIOs would describe themselves as "early adopters", the report by Fujitsu Technology Services found, while more than half would rather wait to adopt technology once it has been shown to work successfully in other companies first.
(Photo credit: Robert Thomson via Flickr.com under the following Creative Commons licence)
However, 50 per cent of those questioned said outdated tech is hampering their ability to cut costs.
CIOs' reluctance to invest in new technology is unsurprising given the ongoing downturn, however - with European enterprises decreasing their 2009 IT operating budgets by two per cent and IT capital budgets by one per cent according to Forrester Research.
Consequently the tech market is feeling the pinch: IT purchases by business and the public sector in Western and Central European countries are forecast to shrink 6.3 per cent year-on-year in 2009, following a decline of 0.8 per cent in 2008.
Comments
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1. Julian Dobbins, Micro Focus
With CIOs shying away from new technology, it places even more importance on maximising the value of the core IT assets already in place. These systems will likely have been in place for many years, but instead of fearing their age, organisations must embrace their proven worth and seek to extend this value still further.
But all applications are not equal in the eyes of the business. The starting point is to identify where this value lies and stands to be exploited. Application portfolio management tools and disciplines provide this insight in a fact-based way, allowing the company to move forward with confidence. By being more proactive in managing the existing technology, CIOs can encourage the evolution of their IT and break away from being labeled as tech cowards.
2. anonymous
Now more than ever it is vital to stay competitive – resource consuming processes and outdated technology are the cause of huge inefficiencies within businesses. CIO’s should focus on achieving efficiency across the business to help take it forward during the downturn. Small investments and updates to technology systems within your business can boost competitive edge and help you ride through the recession.
Michael Coppack, Managing Director adramatch