Cost cutting drops down CIO priority list – but so does innovation

It will come as little surprise to most CIOs that the vast majority of their peers prioritised cost-cutting measures over innovation during the recent recession.

However, a survey of more than 2,600 global IT leaders by recruitment specialist Harvey Nash showed that the effect of the downturn on CIO decision-making appears to be receding, with 74% citing cost saving as a key issue during 2009, down from 84% a year previously.

Still, the number of CIOs who are prioritising innovation over ‘keeping the lights on’ appears to be shrinking further, with 38% referencing innovation as a key issue last year compared with 41% in 2008.

“The results show that the CIO community is currently wrestling with significant pressures as the Great Recession fades into history and a new decade, with a new competitive landscape, emerges,” wrote Harvey Nash chief executive Albert Ellis.

“Offshore destinations for outsourcing, the emergence of new technology models such as cloud computing, a redefined skills shortage and even the strategic role of the CIO itself have all been fundamentally changed by the economic crisis,” Ellis opined.

Peter Done

Peter Done is managing director of Peninsula Business Services, the personnel and employment law consultancy he set up having already built a successful betting shop business.

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