CIOs prioritise business value over cost-cutting

Businesses trust IT departments to look after IT and tech expenditure

Businesses are more inclined to focus on optimising how technology works in their organisation, rather than cost-cutting, Gartner has revealed.

Almost half of the CIOs surveyed said proving the value of technology is their primary concern, with lowest operational risk coming in second place, while price and performance a worry of 41% of CIOs. Of course, cybersecurity was also high on the list, but only 38% said this was a cost optimisation concern.

"It's not enough to simply reduce IT spending; CIOs must reinvest in growth and transformation to deliver more value," Stewart Buchanan, research vice president at Gartner said. "Those who fail to engage in optimisation risk having savings decisions imposed on them by an advisory organisation with less understanding of IT or digital technology opportunities."

The research also revealed how the IT landscape is changing. IT departments are taking more control over how money is spent in an organisation, which justifies Gartner's standpoint that businesses are more likely to trust the IT department to control IT and tech spend than other departments (for example, the finance team or board).

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

"As you'd expect, CIOs have the most influence over the selection and approval of cost optimisation opportunities within IT shared services," said Buchanan. "Interestingly, CIOs who focus on digital business opportunities have greater responsibility for cost optimization than those who don't. This suggests that CIOs are starting to exert influence over selecting and approving digital business ideas to optimise business costs."

Featured Resources

What you need to know about migrating to SAP S/4HANA

Factors to assess how and when to begin migration

Download now

Your enterprise cloud solutions guide

Infrastructure designed to meet your company's IT needs for next-generation cloud applications

Download now

Testing for compliance just became easier

How you can use technology to ensure compliance in your organisation

Download now

Best practices for implementing security awareness training

How to develop a security awareness programme that will actually change behaviour

Download now
Advertisement

Recommended

Visit/government-it-strategy/28305/ir35-news
Policy & legislation

Government announces review of IR35 off-payroll changes

8 Jan 2020
Visit/strategy/28223/cio-job-description-what-does-a-cio-do
Business strategy

CIO job description: What does a CIO do?

7 Jan 2020
Visit/security/29204/how-can-you-protect-your-business-from-crypto-ransomware
Security

How can you protect your business from crypto-ransomware?

4 Nov 2019
Visit/wifi-hotspots/31488/how-to-boost-your-business-wi-fi
wifi & hotspots

How to boost your business Wi-Fi

22 Oct 2019

Most Popular

Visit/policy-legislation/data-governance/354496/brexit-security-talks-under-threat-after-uk-accused-of
data governance

Brexit security talks under threat after UK accused of illegally copying Schengen data

10 Jan 2020
Visit/microsoft-windows/32066/what-to-do-if-youre-still-running-windows-7
Microsoft Windows

What to do if you're still running Windows 7

14 Jan 2020
Visit/hardware/laptops/354533/dell-xps-13-new-9300-hands-on-review-chasing-perfection
Laptops

Dell XPS 13 (New 9300) hands-on review: Chasing perfection

14 Jan 2020
Visit/operating-systems/25802/17-windows-10-problems-and-how-to-fix-them
operating systems

17 Windows 10 problems - and how to fix them

13 Jan 2020