'Spending Money in Right Places' Mandate for CIOs

Ann All

CIO spending outlooks are shrinking, based on the most recent CIO Magazine Tech Poll. Respondents predicted that IT spending will rise 5.8 percent in the next 12 months, down from the increase of 6.5 percent predicted in the previous survey.


But is this such a bad thing? Maybe not, say tech execs at a number of companies featured in this itWorldCanada article. Marriott's SVP of information resources application services, for example, says that a decrease in the IT budget for 2007 at his company simply means a focus on "spending money in the right places."


At Marriott, that means continued server consolidation, a new Web-based labor management system, and staff training designed to improve requirements-gathering and reduce project costs, among other items on the agenda.


Companies such as Marriott are intent on lowering spending on operations and maintenance, and that's a good thing, say analysts from Gartner and Forrester Research who are quoted in the article. Not only does this win fans among line-of-business execs, but it should free up funds for new and more strategic initiatives.


Among the tactics they recommend: asset management, selective outsourcing, server consolidation, server virtualization, retiring redundant gear and adopting best practices for project management and application development.

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