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Smaller companies, with less than Rs 100-crore revenue, are likely to spend 32 per cent of their IT budget on business opportunity and 25 per cent on innovation in the current fiscal.
As per a survey carried out by Ernst & Young India for the CIO Klub — an association of chief information officers — larger companies would be spending less on IT this year considering the maturity of their operations.
The third annual study titled: ‘The enterprise IT investment trends survey 2011’, was released here on Friday and is based on a survey of over 170 CIOs of companies with annual revenue of Rs 100 crore-Rs 1,000 crore.
“The survey reflects the confidence in the India growth story and many companies are taking steps to further increase IT spend with a focus on providing business with innovative IT solutions, being more customer-centric and investing in technologies that aid in giving their business a competitive edge,” said the E&Y partner and IT advisory practices leader, Mr Samiron Ghoshal, while releasing the report.
This year, firms will spend 35 per cent of their total IT budget for IT system maintenance, 28 per cent on enabling business operations to capitalise on business opportunities; 23 per cent on innovative technologies to compete better; and 14 per cent towards compliance, says the survey.
As per the survey, the five top objectives of higher IT spend this fiscal are business alignment, business continuity, information security, customer management and cost reduction.
For over 70 per cent of CIOs from companies with under Rs 500-crore revenue, business alignment is the top priority for FY12, this is only 50 per cent for CIOs from companies with over Rs 1,000-crore revenue. The second top priority is business continuity with 54 per cent identifying this.
Information security comes third with 47 per cent confirming this, while for 69 per cent of CIOs from companies with revenues of over Rs 1,000 crore, this is the key priority. This is very low at 26 percent among smaller firms.
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