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IT Management Trends and Budget Allocations: Insights from 2010

This report by Jerry Luftman provides key insights into IT management concerns, budget allocations, and staffing trends from 2009 to 2011. It evaluates the priority of time spent on IT business and HR alignment, the increase in application technology investments, and comparisons of IT budgets against corporate revenue. The document also analyzes IT staff turnover rates, salary changes, and organizational maturity concerning CIO roles, highlighting shifts in operational focus post-recession. This comprehensive view offers valuable guidance for IT executives aiming for improvement and strategic alignment.

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IT Management Trends and Budget Allocations: Insights from 2010

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  1. Jerry Luftman Executive Director & Distinguished Professor SIM VP Chapter Relations & Academic Affairs, Emeritus

  2. Top 10 2010 IT Management Concerns

  3. Priority of Time Allocated for IT Business Alignment Considerations (2009)

  4. Priority of Time Allocated for IT HR Considerations (2009)

  5. Top 5 Application & Technology Investments 2010 * New to top 5

  6. 2010 IT budget in comparison to 2009 (Actual) 65% 66% (52%) ( 75%) (25%) (23%) (48%) (2009)

  7. 2011 IT budget will be in comparison to 2010 (Projected) 73% 62% (66%) (65%) (*Back to pre recession range) (2010)

  8. 2010 IT Budget Allocation (Actual) (2009)

  9. 2010 IT Staff Turnover Rate 2009 Average: 6.90 2008 Average: 8.40 2007 Average: 8.13 2010 Average 5.50 2006 Average: 7.20

  10. 2011 IT Budget Allocation (Projected) (2010)

  11. IT Budget allocation for Offshore Outsourcing 7.0 2011 (Projected) 2005 2006 2007 2008 2009 2010

  12. IT budget divided between running existing systems and building/buying new systems 2010 2011 (Projected) 2010 2011 (Projected) Percentage allocated to running existing systems Percentage allocated to building/buying new systems

  13. Percent of your IT budget was allocated for education/training (2010) 2009 Avg: 2010 Avg: (2009)

  14. Anticipated percent of your IT budget allocated for education/training (2011) 2009 Avg: 2010 Avg: 2011 Avg: (2010)

  15. IT Budget As Percent of Corporate Revenue 2010 48% 52% (2009: 58.3%) (2009: 41.7%) Average: 3.87 (2009: 3.83) (2005-9: 3.67)

  16. 2010 IT Staff Salaries in Comparison to 2009 (Actual) (2009 : 66%) 83% 58% (2008: 19%) (2009: 34%) (2009: 47%) (2009: 81%)

  17. 2011 IT Staff Salaries in Comparison to 2010(Projected) 39% 91% (2010: 9%) (2010: 46%) (2010: 45%) (*Back to pre recession range)

  18. CIO or Senior IT Executive Reports to Other: Board of Directors, CAO, Deputy CEO, Provost, Executive Vice President, VP Strategy) (2009)

  19. How long has your CIO (or senior IT executive) held their position? 52% > 3 Years (2009: 48%) 2010 Average: 5.1 Years 2009 Average: 4.6 Years 2008 Average: 4.3 Years 2007 Average: 4.1 Years 48% =< 3 Years 2006 Average: 3.6 Years (2009: 52%)

  20. How CIOs spend their time *75% time non-technical (2009 >74%) #new entry in the list

  21. Your current CIO was hired from Outside of IT: General Management 3%, Marketing 2%, CFO 3%

  22. [ 70.4%;67.5%;77%; 74% ] [ 9.5%; 8.8%; 5%; 10.3% ] [ 18.4%;22.2%; 18%; 15.7%] 2010 IT Organization *2.87 *2.64 *3.03 * Alignment Maturity [2009;2008; 2007; 2006 findings]

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