2013 IT Budgets: New Horizon or More of the Same?

Michael R. Wood is a Business Process Improvement & IT Strategist Independent Consultant. He is creator of the business process-improvement methodology called HELIX and founder of The Natural Intelligence Group, a strategy, process improvement and technology consulting company. He is also a CPA, has served as an Adjunct Professor in Pepperdine's Management MBA program, an Associate Professor at California Lutheran University, and on the boards of numerous professional organizations. Mr. Wood is a sought after presenter of HELIX workshops and seminars in both the U.S. and Europe.

Once more into the breach…the IT budgeting breach, that is. Since the 2009 economic meltdown, promises of a recovery have loomed--and yet still remain just out of reach. Fear, uncertainty and doubt about the economy, increasing regulations and more still plague many an organization’s leadership. As companies brace for what could be a return to recessionary conditions, belts are tightening--and that means once again IT spending will suffer. Gartner expects U.S. government IT spending to contract in 2013 driven by Eurozone austerity measures. Forester analyst Andrew Bartels puts it this way as he predicts that IT spending growth will come to a halt:

“The economic crisis gripping Europe now is so broad-based that in 2012 and 2013, IT spending behaviours will reflect the region as one single market.”

It seems the only bright spot for IT on the horizon is the spending on Cloud-related applications, which according to IDC will comprise 10 percent of all IT spending in 2013. For CIOs starting their 2013 business planning and budgeting efforts, the outlook is grim indeed. In fact, should the worse happen--should Greece, Spain and other countries suffer complete economic collapse--the global economy could fall from recession into depression before our very eyes.

More than ever before, CIOs (like their CEOs) need to be more nimble and adaptable …

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