According to an Ernst and Young and CIO KLUB 3rd Annual Survey,
companies with revenues less than Rs 1 billion will spend 32
percent of their budget on business opportunity and 25 percent on
innovation, while IT spend for larger companies, with revenues
greater than I billion have dropped to less than 1 percent,
understandably so considering maturity of operations and better
leveraging of IT investments. The Survey titled “The
Enterprise IT Investment Trends Survey 2011 was unveiled in Mumbai
by Nandan Nilekani, Chairman, Unique Identification Authority of
India.
This year’s study is based on a survey of over 170
CIO’s of companies with annual revenue ranging from less than
Rs 1 billion to greater than Rs 10 billion. The objective of the
survey is to capture key IT trends and investment patterns across
various sectors and strategy adopted by various CIOs to aid
business growth.
“IT’s focus will be largely to develop positive
relationship with the users, support business initiatives with
innovative technologies and invest in customer centric and business
intelligence applications for better decision making”,
remarked Samiron Ghoshal, Partner, Leader – IT Advisory
Practice, Ernst & Young.
Top five priorities for CIO for
2011
Business alignment : CIOs have voted Business
alignment as a top priority for FY11–12. More than 70 percent
of respondents from companies with revenues below Rs 5 billion have
stated business alignment as one of their top priorities as against
50 per cent of respondents from companies with revenues greater
than Rs 10 billion.
Business continuity : Business continuity has
featured as a top priority consistently since the inception of the
survey in 2009. 54 percent of the respondents have identified
business continuity as one of their top five priorities.
Information Security :
Information security remains to be one of the top priority this
year with 47 percent of the respondents confirming this fact. Among
respondents from companies with revenues higher than Rs 50 billion,
69 percent have identified information security as a key priority,
as against only 26 percent of respondents from companies with
revenues less than Rs 1 billion who have identified information
security as a key priority.
CRM/BI/DW : 41 percent of the respondents
identified implementing customer centric solutions and business
intelligence applications as a top priority. Using customer-centric
and business intelligence application for better decision making
and improved customer interaction is prominent in automotive, media
and entertainment, transportation and logistics sector.
Cost reduction: 38 percent of the respondents
believe IT cost reduction as an important initiative as against 55
percent of the respondents in the prior year survey. Among the
respondents, 60 percent who identified cost reduction as a priority
have planned to increase IT operating expenditure. EYPL
believes that while an increase in IT spend is necessary to sustain
business growth, there is potential to achieve better operational
efficiencies of the IT function.
Vikas Gadre, Vice President, CIO KLUB said, “We need to act
as catalysts to enable business capitalize on the opportunities
available and help them grow”.
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