Just over half of all survey respondents (55%) stated that reducing costs was their primary goal.
Last month’s hilight customer survey explored IT budgets – their impact on the business, quality of service, expectations of future budgets, etc.
Of those for whom reducing costs was not the primary objective, 75% of respondents put improving the quality of services as their main driver.
While 70% of respondents have experienced budget growth in recent years, only 50% expect budgets to continue to rise in 2006. Of those who do expect budgets to grow next year, the expectation is that the increase will be allocated to technology updates, which will in turn lead to a variety of benefits including greater involvement of the business in supporting both non-IT and IT functions, and increased first call resolution numbers.
On the other hand, should budgets be cut next year, respondents are likely (75%) to take steps to improve the efficiency of existing staff, rather than to simply instill measures such as freezing software and hardware upgrades (9%).
This is a positive insight, indicating that IT managers are indeed taking a longer-term, strategic view.
Interestingly, 50% of survey respondents believe that even if budgets are cut in 2006, they will continue to maintain overall quality of service levels.
With regards to expected budget increases/decreases, the majority of respondents, 50%, expect IT budgets to mirror inflation, 40% expect budgets to move in real terms, and 10% believe budget fluctuations will outstrip inflation.