Indian CIOs To Raise IT Budget By 20%
IT investments in Indian organizations have not been significantly impacted despite the uncertainty in the political environment, market instability and the changing regulatory landscape. A new study by EY-CIOKlub in fact predicts that Indian CIOs will increase their IT budgets by up to 20% this year over the last year.
Business expansion, emerging technologies and internal organizational/process change are the leading influencing factors for IT this year, says the report, while observing that in general, there is a positive sentiment in the market which in turn drives IT investment behavior.
“The winds of change” are blowing in 2014 with CIOs being optimistic and looking at making significant investments for the development of IT and new solutions to achieve business expansion and customer satisfaction,” Samiron Ghoshal, Partner & Leader – IT advisory services, EY said in a statement.
SMAC takes center stage
Evolving digital technologies – including social media, enterprise mobility, data analytics and cloud, commonly known as SMAC — are rapidly emerging as disruptive forces for organizations across all industries.
Majority of CIOs are focusing on the fundamentals of SMAC, ascertaining that they get them right before they move on to more futuristic technologies. As per the survey results, there is a marked difference in adoption levels for each one.
Cloud computing and IT consolidation are seen as the forerunners in this race with nearly 56 % of respondents indicating it as their number one priority for the upcoming year, followed by BI and analytics, enterprise mobility and social media.
As per the survey, it is believed that CIOs need to build a strong strategy around the implementation and roll out of enterprise mobility technology. 25 % of the respondents have marked enterprise mobility as their number one IT transformation priority for 2014–15. Likewise, As seen in the IT transformation agenda, social media is getting a place on the CIO agenda, but is yet to gain importance to be considered among topmost priorities.
Security – a key priority
An interesting outlier, which typically gains considerable interest, is information security with a share of 18 % respondent votes for top priority in the next one year. Security has consistently taken CIOs’ mindshare as one of the key priorities for the last six years and continues to be so, especially with the unprecedented growth of cloud, mobile and big data technologies. Devendra Parulekar, Partner – IT risk and assurance, EY says, in the current business landscape, CIOs will need to enhance their executive skills, have better business connects to be ready to transform the business using the technological advances that will come with security needs.
The survey indicates that more than 45 % of the respondents feel that security and privacy concerns outweigh their focus on cloud. Currently one fourth of the respondents expressed dilemma due to lack of a global information security standard for cloud service providers, which is an area that needs collective efforts by industry, government and associations to reduce this gap.
Big data still evolving
While big data is attracting significant attention from the CIOs, it still has a way to go, says the report, indicating that 11% of the respondents indicated big data investments. In sharp contrast, 42% indicated focus on adopting embedded BI techniques and 30% on adopting advanced analytics (predictive and statistical).
Vertical wise analysis
The survey indicates that while BFSI, IT/ITeS, media and telecommunications sectors are focusing on enhanced customer experience and compliance with regulatory requirements, infrastructure, industrial and consumer products sectors are leaning toward internal process efficiencies and agility.
The survey highlights compliance cost savings and risk mitigation amongst the lowest priorities for the CIOs. Shirish Gariba, President, CIO KLUB, adds, “Organizations are focusing on business expansion through consolidation and innovation, resulting in organizational and process change with a keen eye on understanding the regulations that impact their business.
As opposed to treating each regulation as a special project, organizations today are working out how they can manage and control compliance issues within each market as part of a “business as usual” model to in order to keep the costs down, he says.
Most companies across industry verticals have rated innovation and gaining competitive advantage at a much higher scale than the preceding years.
- Google To Work On Its Own Blockchain Technology
- All You Need To Know About Facebook-Cambridge Data Leak Saga
- Machine Learning Helps Doctors To Generate Precise, Faster Prescriptions
- Insurance Cos Lack Strategy To Leverage IoT Data: Study
- Lack Of Trained Staff, Security Hinder FinTech Growth
- PVR Cinemas Moves To Cloud For HR Transformation
- How DTDC Uses Cloud To Offer 50pc Faster Resolution Of Service Cases
- Smart Cities Can Save 125 Hrs For Each Citizen Every Year: Study
- Global Digital Signature Market To See Huge Leap: Study
- Using Cloud, AI To Transform Banking Sector