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CIOs predict 7.8% more 2006 spending

U.S. CIOs increased IT budget growth estimates in December to anticipate 7.8% more spending in the next 12 months than last year, according to a new poll by CIO Magazine.

The poll's findings are up from growth predictions of 5.7% in November and 5.2% in October, and indicate greater confidence among IT executives heading into 2006.

Seventy percent of the CIOs surveyed said they find IT talent "available," while 9% find it "plentiful" and 20% find people "hard to find and keep." These numbers are virtually unchanged from November's poll results.

The Tech Future Growth Index, which projects IT activity over the next 12 months, improved month to month as well, climbing to 3.1% in December from 2.1% in November. All these projections bode well for IT services firms, which prosper when their clients spend more.

A large majority of CIOs interviewed, 70%, said their IT spending will increase in 2006, though about half said the increase will be modest. Technology areas that showed increased spending from November to December were infrastructure software and e-business applications. Investments in security software and storage systems will also remain strong, the poll predicts.

To see all the results from the survey, go to http://peoplepolls.com/results/CIO/120105.asp?user=CIO. Selected data appear in the accompanying charts.

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