IT budgets up, but salary cuts still a concern: study

24.10.2012

In-house hardware, network, software, facilities and asset depreciation: 24%

Outsourced hardware, network and software: 14%

* Outsourcing expenditures to climb in 2013. The percentage of budgets allocated to offshore outsourcing is expected to climb in 2013, according to respondents. It has generally hovered in the 4% range in recent years, falling to a low of 2% in 2011. In 2012, the percentage of IT budgets allocated to offshore outsourcing climbed to 5%, and respondents expect it to consume 7% of IT budgets in 2013. By geography, the largest percentage of offshore outsourcing work goes to India (43%), followed by western EU (13%), Philippines (12%) and eastern EU (6%).

* Training expenses are flat. Education and training have eaten up a consistently modest portion of the IT budget over the last five years, averaging 3.1%.

* Reporting structures vary. The corporate hierarchy varies for CIOs and senior IT executives. The largest percentage of CIOs (43%) report to the CEO. Another 27% report to the CFO, 19% to the COO, and 10% to a business unit executive.