Companies should raise IT budgets amid digitization: research firm

Taipei, Jan. 26 (CNA) Companies should increase their information technology (IT) budgets amid an increasingly digital world, technology market information research and advisory firm Gartner Inc. said in a statement released Friday. A survey conducted by Gartner among 2,000 chief information officers (CIOs) around the world shows that enterprises have realized on average only 43 percent of the business potential of their technology and that their IT budgets have been flat to negative ever since the dot-com bubble burst in 2001 and 2002. For 2013, CIO IT budgets are projected to be slightly down, with a weighted global average decline of 0.5 percent, according to the survey results. Over the last 18 months, digital technologies -- including mobile, analytics, big data, social media and cloud -- have reached a tipping point among business executives, Gartner said, adding that enterprises have no choice but to increase their technology potential. "CIOs require a new agenda that incorporates hunting for new digital innovations and opportunities, and harvesting value from products, services and operations," said Mark McDonald, a Gartner group vice president. "In a world of change, it is concerning that around half of CIOs surveyed do not see IT's enterprise role changing over the next three years," he added. The future for companies rests in not repeating the past but in extending their IT abilities, Gartner said. (By James Lee)