The challenges facing CIOs is changing, according to analyst group Gartner, with increasing numbers called upon to support business growth, but with limited funding for their new objectives.

According to a survey of 1,300 CIOs – a group with a total IT budget of $57 billion – in 2005 they are being asked to come up with strategies for utilising IT to grow the business, after years focusing on delivering cost reductions through technology driven operating efficiencies.

"CIOs must deliver more value and become a contributor rather than a commodity," said Marcus Blosch, group VP and research director at Gartner. The shift towards improving business processes and business intelligence has been driven by rising expectations of greater profitability, faster innovation and growth, but average budget increases are just 2.5%.

The survey also highlighted major HR challenges for 2005. Only 39% felt they had the right personnel to meet current and future business needs. Moreover, of those who cited business process improvement in their top five priorities, just 20% thought the IT organisation had the necessary skills to implement this.