CIOs See Budgets Growing


Many CIOs report they are afforded more flexibility to run their operations as they are working with larger IT budgets in 2012 than they did in 2011. This insight is provided by latest annual Society for Information Management (SIM) survey. 

SIM membership includes more than 3,500 CIOs and IT executives. SIM conducts the research annually to assess how CIOs experiences change from year to year. The SIM organization conducts this research and holds a large annual conference to bring many of these CIOs and their senior IT leaders together to share and learn from each others experiences. Many aspiring CIOs participate in the SIM RLF or Regional Leadership Forum to gain the leadership skills necessary to take on the top IT spot.

While overall budget numbers are still less than pre-recession levels, the recent IT budget increase is attributed by CIOs at least in part to a growing appreciation among organization decision makers for the IT department's impact upon achieving business objectives. This is one of the primary reasons why a growing number of CIOs are reporting directly to the CEO rather than the CFO.

Please see  CEOs Plan to Grow IT Investments

With larger IT budgets CIOs are more easily able to hire better talent to keep in line with growing IT salaries for many key IT positions. These reasons in addition to other factors have lead to an overall increased sense of stability for CIOs, as their average length of tenure at their current position has continued to increase in recent years. CIOs and IT executives from 195 companies took part in the research.


Here are some other key highlights from the 2012 SIM survey:

1. About 5% of a corporation's overall revenue was allocated to the IT budget in 2012, compared to about 3.6% in 2011

2. Approximately 48% of CIOs say the IT budget in 2012 is greater than 2011's, compared to 34.5% who say 2012's budget was less than 2011's.

3. Participating Organizations 2012 IT Budget Component include:  Internal staff (33%), In-house hardware, network, software facilities, depreciation (24%),  Consulting services (9%).

4. Organizations are spending 5% of the 2012 budget on offshore outsourcing, compared to 2% in 2011. Offshoring $$ allocated to India (43%), Western Europe (13%), Philippines (12%).

5. 60% of companies increased IT staff salaries in 2012. Another 11% reported reducing them.

6. 43% of CIOs report directly to the CEO, compared to 27% who report to the CFO. Additionally the average CIO stays in their current position for 6 years now as opposed to 3.6 years in 2006.





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Bill has been a member of the technology and publishing industries for more than 25 years and brings extensive expertise to the roles of CEO, CIO, and Executive Editor. Most recently, Bill was COO and Co-Founder of and the parent company PSN Inc. Previously, Bill held the position of CTO of both Wiseads New Media and


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