Gartner: CIOs cannot ignore innovation in economic downturn

By Victor Ng | Jan 7, 2009

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Chief information officers (CIOs) in the Asia Pacific region will need to balance innovation with frugality, ensure that sustainability does not drop off the agenda, and create a direct link between information technology (IT) and the organization’s revenue in 2009, according to technology research and advisory firm Gartner.

At Gartner’s annual ‘Predicts 2009’ briefing in Hong Kong this month, three of the research firm’s leading analysts will present the latest technology trends and advice to help senior IT executives with their planning for 2009. The ‘Gartner Predicts 2009’ briefings will be held in six cities in Asia in January 2009.

Six months ago, Hong Kong’s Gross domestic product (GDP) growth for 2008-2009 was forecast at 6%. As at mid-November 2008, Hong Kong’s GDP growth forecast had been lowered to 2.4%, and the outlook is expected to have worsened further since then. This will affect IT spending, according to Gartner, although the impact in Asia Pacific will not be as severe as in other regions, and the level of impact varies by country and industry.

Gartner will issue an updated, detailed IT spending forecast for the region in early 2009.

Gartner’s Top 10 Predictions for 2009
Gartner research director Robin Simpson said that as businesses come to terms with the new realities, technologies that bring improved efficiency and reduce costs remain attractive.

“Technology continues to advance at a rapid pace, but global economic conditions will significantly impact business uptake in 2009. Hong Kong has exposure to the impact of the credit crisis as a trade-dependent economy. In addition, recent events have shaken consumer confidence,” said Mr. Simpson.

“However, organizations that postpone essential technology deployments do so at their peril. Technologies like virtualization and emerging trends like cloud computing offer new efficiencies and reduce the need for capital expenditure. At the same time, consumer technologies continue to advance into the enterprise and the impact of internet-based video and telepresence in business cannot be ignored.”

At the upcoming Gartner Predicts 2009 briefing in Hong Kong, Mr. Simpson will outline Gartner’s view of the top 10 technologies and trends that will impact enterprise IT in 2009 and beyond. He will discuss how the growing power of consumer technologies and the internet will impact the workplace, recruitment, markets, products and innovation.

Environmentally sustainable IT at risk in economic downturn
According to Gartner vice president and distinguished analyst Andrea Di Maio, fluctuations in the cost of oil and changing economic conditions make the environmental sustainability agenda vulnerable.

“IT can be both a liability and an asset for the environment,” said Mr. Di Maio. “In tough economic times, some organizations will allow their green IT program to slip down the priority list. However, operating in a low carbon economy is fast becoming a fact of life for most businesses and government agencies. It is possible for businesses to prioritise the components of a green IT program in order to strike the right balance between short term cost pressures and longer term sustainability.”

At the Gartner Predicts 2009 briefing in Hong Kong on 20 January, Mr. Di Maio will encourage senior IT executives to set green IT priorities and draw up an action plan to help their organisation be sustainable in the longer term.

CIOs must ‘make the difference’
Gartner vice president and research director Andy Rowsell-Jones said economic upheaval in 2009 would have CIOs searching for the best ways to respond to calls for capital spending cuts.

“While business conditions are very volatile and uncertain, many internal IT costs are very certain, creating a mismatch between costs and revenue. This means there is a desire to make IT costs more variable,” said Mr. Rowsell-Jones. “While not all new technology sourcing models will deliver on this promise, there are definitely levers that CIOs can pull to make costs variable to match business needs.”

Mr. Rowsell-Jones will support his recommendations for CIOs with data from Gartner’s annual global survey of more than 1,400 CIOs at the upcoming Gartner Predicts 2009 event.

 For more information or to register for the Hong Kong event, please visit: http://www.gartner.com/it/page.jsp?id=827414 [8]
 

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