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IT Spending GARTNER PERSPECTIVE:

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Gartner delivers that insight through unique perspectives on IT spending, including peer benchmarks, spending forecasts and budgeting constructs.

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Page 1: Gartner Perspecitve:  IT Spending 2010

IT SpendingGarTner PerSPecTIve:

Page 2: Gartner Perspecitve:  IT Spending 2010

2010 may be the most important year of your career.

2008 – 2009 witnessed the most severe

economic recession in generations, and the IT

industry suffered an even greater decline than

it did during 2001, following the dot-com

bubble. Yet all recessions come to an end, and

this one will, too. It is now—as the recession

gives way to growth—that there is great

opportunity to plan for that growth and enable

your organization to take advantage of a

recovering economy.

Leading the IT organization in 2010 requires a

clear vision for melding technology, business

process and financial management into a

cohesive view of IT investments and priorities.

Page 3: Gartner Perspecitve:  IT Spending 2010

IT Spending Overview

The basis for such vision is insight into which industries,

countries and IT priorities will grow fastest, first, giving you the

ability to anticipate and innovate rather than react and follow.

Gartner delivers that insight through unique perspectives on

IT spending, including peer benchmarks, spending forecasts

and budgeting constructs. Gartner has the most extensive IT

benchmarking database available, enabling clients to assess

their IT spending relative to their peer organizations based

on size, industry and geography. Gartner also surveys HR

and finance professionals to gain their unique perspective

on IT. In addition, daily interactions with technology and

service providers and investors provide another dimension

to our analysis of IT spending. The 3,700 CIOs and senior IT

executive who are members of Gartner Executive Programs

also provide invaluable insight into the leading practitioners

of information technology, further rounding out the nuanced

viewpoint only Gartner offers.

Gartner analysts are world-renowned experts in their fields,

leveraging all of these perspectives to create holistic forecasts

of the IT industry. It is this uniquely broad set of inputs, combined

with analyst expertise and daily interactions with clients, that

enables Gartner to decisively forecast the IT industry across

industries, geographies and enterprise size. Simply stated,

Gartner delivers the world’s most comprehensive, accurate

perspective on IT spending.

The “Gartner Perspective: IT Spending” booklet provides an

overview of Gartner research on IT spending and functions as

a reference guide to top-level statistics and IT spending analysis.

It provides a glimpse into the

powerful insight Gartner can

provide as you navigate through

what may be the most important

year of your career.

Barbara Gomolski Managing Vice President

Gartner Research

Page 4: Gartner Perspecitve:  IT Spending 2010

3 Worldwide IT Spending Forecast

4 Worldwide Computing Hardware Outlook

6 Worldwide Software Outlook

8 Worldwide Telecommunications Outlook

10 Worldwide IT Services Outlook

12 Worldwide IT Spending by Region

13 IT Spending Trends by Vertical Industry

16 IT Metrics: IT Staffing Levels for 2010

18 CIO Agenda 2010

Table of Contents

Page 5: Gartner Perspecitve:  IT Spending 2010

Worldwide IT Spending Forecast

Worldwide IT Spending Forecast Richard Gordon, Vice President, Gartner Research

The global economic downturn has continued to weigh on

the ability and desire of businesses and consumers to make

IT purchases. However, we assume the economy will recover,

beginning towards the end of 2009 and tentatively at first.

While initial growth in IT spending in 2010 and 2011 may come

as the result, directly or indirectly, of the various government

stimulus packages announced around the world in recent

months, there will be a return to more sustained growth in IT

spending in 2012 and 2013 as the economic recovery unfolds.

IT budget cuts may have slowed market growth in the short

term but, even in the toughest of business environments,

enterprises must preserve short-term spending on critical

business operations and long-term technology investments.

IT vendors should be sensitive to the challenges faced by their

customers and plan pricing strategies accordingly.

The global economic downturn may be easing, but IT budgets

are still being cut and consumers will need more persuading

before they feel confident enough to spend more. Worldwide

IT spending is forecast to total $3.2 trillion in 2009, a 5.2 percent

decrease from 2008 spending of $3.4 trillion (see Table 1).

Worldwide IT spending is expected to return to growth in 2010

as revenue is projected to reach $3.3 billion, a 3.3 percent

increase from 2009.

TaBle 1

Worldwide end-User Spending on IT (Billions of U.S. Dollars)

�007 �008 �009 �010

Total Market 3,181 3,372 3,198 3,304

Annual Growth (%) – 6.0 -5.2 3.3

Source: Gartner (September 2009)

Page 6: Gartner Perspecitve:  IT Spending 2010

Worldwide IT Spending Forecast

In addition, during the next two years IT vendors should:

Reassess rapidly changing customer needs and

opportunities. For example, social networks are impacting

the way in which vendors should communicate with

customers. Marketing messages must be managed and

controlled more closely.

Rebalance priorities between customer acquisition and

retention. As the sales environment has become more

challenging, business will have focused much harder on

retaining existing customers.

Provide realistic business return on investment statistics,

benchmarks and proofs of concept. For example,

ensure that products and services deliver tangible and

demonstrable business benefits.

Revaluate and refine partnership programs, relationships

and strategies. For example, quantify and justify assumptions

of the opportunity available to partners, and prepare for new

market entry with partners that can provide regional, vertical

market and application integration skills.

Worldwide Computing Hardware OutlookJon Hardcastle, Director, Gartner Research

Hardware is the easiest segment of IT spend to cut from

budgets as there is no ongoing spend to support. Hardware

spend is also heavily impacted by the poor access to credit,

both for individuals and companies. Hardware will therefore see

the steepest decline of all segments during 2009. The weakest

segments are PCs and servers. These segments are impacted

by delayed replacement activity and very little new investment.

Page 7: Gartner Perspecitve:  IT Spending 2010

Worldwide Computing Hardware Outlook

Worldwide hardware spending is on pace to decline 16.5 percent

in 2009 as revenue totals $317 billion (see Table 2). In 2010,

hardware spending will be flat with spending totaling $317 billion.

TaBle 2

Worldwide end-User Spending on Computing Hardware (Billions of U.S. Dollars)

�007 �008 �009 �010

Total Market 370 380 317 317

Annual Growth (%) – 2.5 -16.5 0.0

Source: Gartner (September 2009)

The dollar’s rise has also had a very strong effect on the

hardware market. As the dollar has risen, like-for-like local

revenues have led to lower U.S. dollar revenues. Most

hardware pricing follows the dollar, so a rising dollar will

also lead to rising local prices. Rising prices in such a poor

economic environment will lead to falling sales. Hardware

vendors look to offset this by lowering configurations; however,

this leads to erosion of U.S. dollar average selling prices

(ASPs) and lower U.S. dollar revenues.

Users, especially professional users, have increased average

hardware lifetimes in response to the ongoing economic

slowdown. The most prominent segments to see longer life

cycles are professional PC desktops, copiers and multifunction

products, and x86-based servers. We expect longer lifetimes

to delay roughly 40 million desktop PC replacements and 7

million mobile PC replacements in 2009.

Page 8: Gartner Perspecitve:  IT Spending 2010

Worldwide Hardware and Systems Outlook

Companies are reviewing their deployment strategies and

making decisions such as permanently lengthening life cycles,

deploying virtualization, consolidating devices, migrating

from higher-cost platforms or cutting non-core infrastructure.

Meanwhile, while new strategies are developed, there will be

further buyer inertia and sales cycles will lengthen.

We expect 2010 spending to be at a similar level to 2009.

Although we will see an increase in replacement activity,

this will take place in a highly cost-constrained environment.

Lower configured systems, lower ASPs, virtualization and

consolidation will mean that the increase in replacement demand

will not necessarily be reflected in increased levels of spend.

Worldwide Software OutlookJoanne Correia, Managing Vice President, Gartner Research

Cost optimization will benefit alternative software acquisition

models as organizations will look for ways to shift spending

from capital expenditures to operating expenditures. Because

of this, vendors offering software as a service (SaaS), IT asset

management, virtualization capabilities and a good open-

source strategy will benefit. However, the still-small portion

of spending coming from these technology areas does not

have the ability to improve the gloomy outlook for the overall

software market.

Page 9: Gartner Perspecitve:  IT Spending 2010

7

Worldwide Software Outlook

Worldwide software spending in 2009 is on pace to total $221

billion—a 2.1 percent decline from 2008 spending of $225

billion (see Table 3). Software spending is projected to return

to growth in 2010, with revenue reaching $231 billion, a 4.8

percent increase from 2009.

TaBle 3

Worldwide enterprise Spending (Billions of U.S. Dollars)

�007 �008 �009 �010

Total Market 209 225 221 231

Annual Growth (%) – 7.9 -2.1 4.8

Source: Gartner (September 2009)

Hardware projects continue to be stalled for PCs, servers and

storage, further pushing down the new sales of infrastructure

software that are dragged by hardware sales. Also, new sales

of enterprise application software in the manufacturing and

financial sectors have completely stalled as these vertical

sectors sort out their long-term viability.

Nevertheless, survey research indicates that organizations

are looking to the long term by streamlining their IT portfolios

and considering new products that help them optimize

their IT infrastructure, resulting in smaller but more-strategic

purchases. As a consequence, we expect pent-up demand

for infrastructural, strategic and enterprisewide deployments

to increase, and to materialize at some point when economic

recovery begins.

Overall enterprise software sales for 2010 look positive, but the

drag from the downturn is slowing down the pace of recovery

of the annual growth rate (AGR) through the forecast period.

Page 10: Gartner Perspecitve:  IT Spending 2010

8

Worldwide Telecommunications Outlook

Worldwide Telecommunications OutlookPeter Kjeldsen, Director, Gartner Research

Gartner expects the telecommunications market to decline

nearly $79 billion, or -4 percent in 2009. The market is forecast

to grow 3.2 percent in 2010, taking the total market to $1.9

trillion (see Table 4).

TaBle 4

Worldwide end-User Spending on Telecommunications (Billions of U.S. Dollars)

�007 �008 �009 �010

Total Market 1,854 1,958 1,879 1,940

Annual Growth (%) – 5.6 -4.0 3.2

Source: Gartner (September 2009)

Consumers have replaced their mobile handsets less often, and

those who have replaced them have spent less money doing so

as more aggressively priced devices have reached the market.

Smartphones is the fastest-growing segment and is expected to

represent 15 percent of overall mobile device sales.

Consumer spending on both mobile and fixed services remains

fairly resilient to the global economic downturn. However,

average revenue per connection will continue to trend down

on a global basis in the midterm despite operator attempts to

use mobile data to offset price reductions in voice.

The enterprise network services segment is being hit by the

tight access to capital that will remain in many countries

through mid-2010. The recession is lengthening sales cycles,

and providers are being forced to offer deeper discounts in

the short term to win business.

Page 11: Gartner Perspecitve:  IT Spending 2010

9

Worldwide Telecommunications Outlook

Overall spending in the enterprise network equipment market

will be driven by changes in gross domestic product (GDP)

and employment through 2011, particularly in mature markets.

Spending on areas that promise cost savings, such as WAN

optimization and Secure Sockets Layer (SSL) virtual private

networks (VPNs), will be less influenced by changes in GDP

and employment levels.

Within the enterprise communications applications segment,

telephony is a mature market that typically grows in line

with overall economic growth. Revenue from contact center

infrastructure will recover somewhat but will lag overall

economic growth until organizations re-staff call centers up

to the capacity of their technology deployments. There will

be a shift from hardware-based desk phones to shipments

of licenses for software clients for PCs, laptops and

smartphones.

The carrier network infrastructure market is suffering a late

cyclical impact from the financial crisis, with negative growth

in 2009 and 2010. However, the long-term fundamentals

are intact and will drive a moderate rebound of the market

from 2011 to 2013. Emerging markets will continue to gain

importance throughout the forecast period.

New investments in telecom operations and management

systems (TOMS) will be primarily driven by business goals of

cost savings, revenue generation, as well as improvements in

customer experience and churn reduction. In the developed

markets, complex TOMS transformation, modernization

programs and adoption of new technologies and services will

drive growth. In emerging markets, rapid subscriber growth,

outsourcing projects and new communications service providers

(CSPs) will drive growth for basic end-to-end solutions.

Page 12: Gartner Perspecitve:  IT Spending 2010

10

Worldwide IT Services Outlook

Worldwide IT Services OutlookKathryn Hale, Vice President, Gartner Research

All companies must harness information to create competitive

advantage. It is no longer possible to leverage information

without technology, and both the information to be managed

and the supporting technologies are continuously becoming

more complex. Leading-edge IT implementations generally

require special expertise from external service providers.

Although many businesses are focused on improving internal

processes and reducing costs, investing in innovation does

continue. Some businesses still have the resources to invest

in IT to retain customers and gain competitive advantage;

wherever those resources exist, business management

recognizes that a downturn can be a perfect time to undertake

projects that impact future growth.

Worldwide IT services spending is on pace to total $781 billion

in 2009, a 3.5 percent decline from 2008. In 2010, worldwide

IT services spending is forecast to reach $816 billion, a 4.5

percent increase from 2009 (see Table 5).

Many contracts for more-standardized services, such as

software support, are multiyear and cannot be readily

canceled, which protects revenue in tough times. Global delivery

models allow buyers to use less-expensive labor, which

simultaneously increases demand for previously unaffordable

services while reducing spending growth rates for

standardized services that cost less than before.

Page 13: Gartner Perspecitve:  IT Spending 2010

11

Worldwide IT Services Outlook

TaBle 5

Worldwide end-User Spending on IT Services (Billions of U.S. Dollars)

�007 �008 �009 �010

Total Market 747 809 781 816

Annual Growth (%) – 8.3 -3.5 4.5

Source: Gartner (September 2009)

Government intervention is a “wild card” in the U.S. and

Western Europe that is currently assumed to be slightly

positive. In the short term, the immediate opportunity is

for consulting outside of IT services. However, as new

government policies evolve, we expect to see long-term

opportunity for IT services deriving from new regulations and

governance structures.

Most companies are seeking to control labor costs, including IT

labor. Turning to external providers can be an immediate solution.

The effects of dampened demand for IT services are

exacerbated by intense pricing pressure, which is being met

with deals that reduce scope, move labor to lower-cost

regions, and in the case of Tier 2 providers, reduced rates

for existing labor. Overall, we expect price improvements to

lag at least a year behind any meaningful economic recovery.

Page 14: Gartner Perspecitve:  IT Spending 2010

1�

Worldwide IT Spending by Region

Worldwide IT Spending by RegionRichard Gordon, Vice President, Gartner Research

All regions experienced a decline in IT spending in 2009, with

Western and Eastern Europe recording the biggest declines.

Only Japan and Middle East and Africa showed positive and

flat growth, respectively (See Table 6).

TaBle 6

Worldwide end-User Spending on IT Products and Services by Region (Billions of U.S. Dollars)

Region �007 �008 �009 �010

United States 929 957.2 932.1 958.3

Annual Growth (%) – 3.1 -2.6 2.8

Canada 74 77.7 71.3 74.7

Annual Growth (%) – 4.9 -8.2 4.7

Latin America 222 250.7 236.4 257.1

Annual Growth (%) – 13.0 -5.7 8.8

Western Europe 872 906.0 811.9 836.1

Annual Growth (%) – 3.9 -10.4 3.0

Eastern Europe 148 170.2 142.6 140.5

Annual Growth (%) – 14.7 -16.2 -1.5

Middle East and Africa

192 205.7 205.7 217.1

Annual Growth (%) – 7.3 0.0 5.6

Japan 273 301.3 306.7 304.5

Annual Growth (%) – 10.4 1.8 -0.7

Asia/Pacific 472 503.6 490.9 515.6

Annual Growth (%) – 6.8 -2.5 5.0

Total 3,156.0 3,372.2 3,197.6 3,304.0

Annual Growth (%) – 6.0 -5.2 3.3

Source: Gartner (September 2009)

Page 15: Gartner Perspecitve:  IT Spending 2010

1�

IT Spending Trends by Vertical Industry

The global economy is expected to begin a gradual recovery

before the end of the year. However, the timing and strength of

the recovery will still vary across regions, with Asia leading the

way, the U.S. following and Europe lagging behind. It will also

vary across industries, with consumer markets reviving first,

followed by the housing and business equipment sectors.

IT Spending Trends by Vertical IndustryJohn-David Lovelock, Vice President, Gartner Research

The outlook for IT spending by industry vertical markets

remains on par with overall IT spending. All segments are

on pace to decline in 2009 with agriculture, mining and

construction, financial services and transportation expected

to record the lowest growth rates (see Table 7).

Over the course of 2009, a number of factors are shaping

operational and technology priorities across the major

vertical markets. At the forefront, the continuing impact of the

economic slowdown has forced companies and governments

to reprioritize spending and shorten goals in this period of

uncertainty. Similarly, vertical market organizations needed

time to assess the impact of the American Recovery and

Reinvestment Act (ARRA) stimulus legislation and other

major government funding programs. The prospect of greater

economic stability, and possible recovery, will likely drive an

uneven pace of advancement by vertical market and usher in

new technology modernization priorities within those industries.

Page 16: Gartner Perspecitve:  IT Spending 2010

1�

IT Spending Trends by Vertical Industry

TaBle 7

IT Spending by Industry Vertical Markets Worldwide (Millions of U.S. Dollars)

Vertical �007 �008 �009 �010

Financial Services

524,120 548,025 502,616 515,927

Public Sector 438,829 464,288 443,368 459,969

Manufacturing 448,461 470,606 433,244 436,024

Communications 202,325 215,060 201,882 206,386

Retail 216,822 226,815 210,816 214,161

Services 171,459 182,374 172,061 175,046

Utilities 115,562 122,169 114,306 118,218

Transportation 103,522 108,565 99,842 101,711

Healthcare 79,592 85,058 79,798 82,207

Agriculture, Mining, and Construction

27,509 27,962 25,391 25,805

Grand Total 2,328,200 2,450,920 2,283,325 2,335,453

Source: Gartner (October 2009)

In the midst of many postponed, canceled or restructured IT

projects in financial services, new sets of priorities and strategies

will become more coherent toward the end of 2009. Movement

toward SaaS and cloud computing, shared services, and more

selective outsourcing will take firmer shape as near-term

priorities to address constrained IT budgets.

Page 17: Gartner Perspecitve:  IT Spending 2010

1�

IT Spending Trends by Vertical Industry

Although federal government IT spending continues to rise,

Q409 represents the first quarter of government fiscal 2010.

Historically, this represents the second-most-active quarter

of government spending, and this will likely continue this

year. Major focus on civil side requirements and emerging

cybersecurity requirements will drive spending.

In the communications sector, next generation networks

and mobile broadband initiatives in Long Term Evolution and

WiMAX investment will continue as telecom carriers continue

to ramp up fourth-generation, high-speed wireless data access

services, albeit at a subdued pace. Other areas of spending

include BPM, data management, and efforts to increase and

deliver enterprise managed services on IP networks.

The ARRA stimulus dollars focused on the healthcare market

have had an undesired effect on the market as a whole. Many

care delivery organizations (CDOs) have put new projects on

hold, partly due to cash-flow concerns and partly to ensure

that new initiatives will meet meaningful use guidelines yet to

be published. Selective thawing in frozen IT budgets will occur

by Q409. However, executive pressure on operational budgets

and a concentrated focus on cash-flow optimization strategies

will remain the norm through the remainder of 2009, with some

growth returning to healthcare IT spending in 2010.

Page 18: Gartner Perspecitve:  IT Spending 2010

1�

IT Metrics: IT Staffing Levels for �010

IT Metrics: IT Staffing levels for 2010Kurt Potter, Director, Gartner Research

Because of the worldwide economic recession, many

organizations have already cycled through various IT staffing

changes that were defensive in nature, often short-sighted

and aligned with an IT strategic plan that was misaligned to the

realities of recession. Often, IT staffing changes were off plan

and related to overreaction to the panic that occurred during

the depths of this recession.

Since many enterprises choose January 1 as the beginning of

their financial fiscal year, July 1 often heralds the official start

of the six-month IT budget cycle in preparation for 2010 IT

strategic plans. During this annual planning process, many

IT leaders will have to live with the shortcomings of previous IT

staffing decisions and take corrective action to prepare for the

return to growth.

Although IT staffing-level planning for 2010 should be far

different from the IT staff actions that organizations have taken

so far in this recession, it is necessary to put into perspective

the typical levels of cuts and increases that enterprises have

experienced in 2008 and 2009.

We polled 185 decision makers about changes in IT staff

due to this economic recession. As shown in Table 8, when

we asked, “What is the current impact on your IT workforce

(internal FTEs and contract labor) due to this economic

recession?” we discovered that the survey showed only 8.1

percent of organizations increased their head count during this

recession, with only 0.5 percent stating that they increased

head count more than 15 percent. Conversely, 91.9 percent

either claimed declining or flat IT staffing levels, with 62.7

percent stating they showed reduced IT staffing levels. The

largest response category was 50.3 percent stating they cut

IT head count by between 1 percent and 15 percent over

previous levels (see Table 8).

Page 19: Gartner Perspecitve:  IT Spending 2010

17

IT Metrics: IT Staffing Levels for �010

TaBle 8

Impact on IT Workforce Due to This economic Recession

IT Staff Change Opinions Percent of Respondents

Cutting IT head count by 1% to 1�% 50.3

Cutting IT head count by more than 1�% 12.4

Increasing IT head count by 1% to 1�% 7.6

Increasing IT head count by more than 1�% 0.5

No head count increase or decrease 29.2

Source: Gartner (June and July 2009)

The severity of this recession may cause a long-term and

organic increase in the size of the contract labor workforce

in many organizations and result in a permanent decrease in

the percentage of their workforce that are internal full-time

equivalents (FTEs), which now stands at 77 percent. This is

due mostly to continuation of caps on new headcount hiring

that is compensated for with use of contract labor.

At an average of 36 percent, IT personnel salaries and benefits

tend to be the largest line item for IT spending. Due to the

recession, those organizations that have policies of preserving

staff will show levels as high as 75 percent when combined

with rapid declines in other IT budget categories. In knowledge

worker-intense industries like professional services, the

percentage devoted to IT personnel salaries and benefits will

tend to be higher than the norm, even in a recession.

CIOs and other IT leaders must consider many other market

trends and assumptions during the next six months during

the IT planning cycle for 2010. Since each industry has its

own dynamics, and comparison of metrics is often more art

and politics than a true science, IT leaders should be prudent

in how they apply these trends to their planning, and even

disregard those trends that do not apply to them.

Page 20: Gartner Perspecitve:  IT Spending 2010

18

CIO Agenda �010

CIO agenda 2010Mark McDonald, Group Vice President and Head of

Research, Gartner Executive Programs

Leading in 2009 was relatively simple as economic conditions

headed in one direction. Now CIOs face an array of business,

operational, technical and strategic challenges in 2010 as

conditions may or may not improve. 88% of enterprises

reported reducing the IT budget during 2009. Even with strong

increased revenue in 2010, CIOs will face the future with

essentially the same resource levels they had in 2006 or 2007.

CIOs report that unlike past recessions, they are being pulled

in two directions at once. The business needs cost savings

to protect financial results—yet it also needs new solutions to

retain current and attract new customers.

Cost reduction challenges reflect the enterprise’s overall need

to better match resources to revenues. Declining revenues,

in some cases by more than 30%, require adjusting every

resource in the company—including IT.

Value creation, particularly of the type created by IT, is actually

increasing in this environment for several reasons. First, the

business will often turn to IT solutions to help reduce its own

cost structure. Second, revenue pressures place a premium

on delivering new features to retain current customers and

grow market share. Finally, information technologies such as

Web 2.0 and analytics continue to make their way into the

business, requiring new IT capabilities.

The need to improve business performance is changing the

shape of business demand for IT to demonstrate its value.

Traditional IT measures and metrics related to IT operational

performance and cost are increasingly less effective.

Executives want to see business impact measures in one or

more of these areas.

Page 21: Gartner Perspecitve:  IT Spending 2010

19

CIO Agenda �010

CIOs should reassess their metrics and scorecards and look to

connect their IT operations and solutions to positive changes

in these areas.

The 2009 CIO Agenda, based on a worldwide survey of 1,527

CIOs, was conducted by Gartner Executive Programs in

late 2008 and represents CIO budget plans reported at that

time. Flat IT budgets were found across enterprises in North

America and Europe, with slight increases in Latin America

and a slight decrease in Asia/Pacific. The CIOs surveyed

represent more than $138 billion in corporate and public

sector IT spending, encompassing 1,527 enterprises across

48 countries and 30 industries.

The survey showed that senior enterprise executives recognize

that IT’s contribution to economic performance extends

beyond managing expenditures. They expect IT to play a role

in reducing enterprise costs, not merely with cost cutting but

by changing business processes, workforce practices and

information use. The business priorities in Table 9 reflect

these expectations.

TaBle 9

Top 10 Business and Technology Priorities in 2009

Top 10 Business Priorities Ranking

Business process improvement 1

Reducing enterprise costs 2

Improving enterprise workforce effectiveness 3

Attracting and retaining new customers 4

Increasing the use of information/analytics 5

Creating new products or services (innovation) 6

Targeting customers and markets more effectively 7

Managing change initiatives 8

Expanding current customer relationships 9

Expanding into new markets and geographies 10

Page 22: Gartner Perspecitve:  IT Spending 2010

�0

CIO Agenda �010

TaBle 9 (contined)

Top 10 Business and Technology Priorities in 2009

Top 10 Technology Priorities Ranking

Business intelligence 1

Enterprise applications (ERP, CRM and others) 2

Servers and storage technologies (virtualization) 3

Legacy application modernization 4

Collaboration technologies 5

Networking, voice and data communications 6

Technical infrastructure 7

Security technologies 8

Service-oriented applications and architecture 9

Document management 10

Source: Gartner Executive Programs (January 2009) Note: 2010 CIO Agenda survey results to be published in January 2010

Meeting the challenges of 2010 will require CIOs to make

harder decisions that impact more than just the IT organization.

They will need to lead these resources to create results that

go beyond their own productive capacity.

The combination of an efficient and responsive IT resource base

gives the CIO the ability and capacity to focus on the enterprise,

its customers and offerings. This comes in the form of driving

sustained financial and operational improvements as well as

focused market-based innovation.

Page 23: Gartner Perspecitve:  IT Spending 2010

How Will the Recovery Impact Your IT Spend in 2010?

Get the integrated perspective only Gartner

can provide!

Find out how you can gain access to our

in-depth data reports as well as objective,

actionable insight to help drive the success of

your key initiatives. Visit gartner.com/economy

or e-mail [email protected].

Please note: the market is volatile and Gartner is constantly evaluating the latest market conditions. Many of these statistics are updated quarterly, so we encourage you to check back with Gartner each quarter for the latest research and analysis.

Page 24: Gartner Perspecitve:  IT Spending 2010

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