As the proverbial light at the end of the Covid-19 tunnel increasingly seems like a mirage, with every day bringing new challenges, IT budgets are under increasing pressure. But companies are also spending on initiatives that will help them recover quickly after the pandemic-driven slowdown. The focus on building digital capabilities for resiliency also means that the chief information officer role in companies is receiving greater attention from boards.
Budget cuts are in place, but not every company has a standard approach. According to Sanchit Vir Gogia, chief analyst and chief executive officer at Greyhound Research, some are even trying to find creative ways of turning IT from a cost centre to a profit centre. “Some boards have asked CIOs to look for unique nuggets that were built in-house—supply chain tools for instance, that could be spun off into a product that could generate revenues.”
According to Greyhound’s latest Global CIO Priorities 2020/2021 study, big-ticket spenders have been hit hardest and Gogia says that while earlier 33% of traditional organisations surveyed expected to spend more than Rs 50 crore on technology annually, the number now stands at virtually zero. Greyhound is reporting budget cuts across all kinds of businesses.
The Greyhound study reveals that 83% of large organisations believe that technology will be a key differentiating factor as companies navigate Covid, and in the post-Covid world. “Organisations are investing in technology and assets that allow them to revive and thrive. Most importantly, the need of the hour is to keep these investments and strategy fluid to allow the room to improvise. All that has been spoken about technology over the past five to six years will be or has started being implemented in a five- to six-month scenario,” explains Gogia.BloombergQuint
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