74% of CIOs don’t plan to overspend on 2005 budget

While business gains and increased hiring contributed to 70% of CIOs reporting either a strong or very strong current business climate, sentiment about the future business climate took a sharp downturn, Forrester Research says. Sentiment dropped by about 10 points on our 100-point scale, more than twice any prior change. The percentage of CIOs that expect worsening conditions has risen sharply over 2004, though it is still only 11%. The poll indicated that spending should remain strong for 2005 with 74% of CIOs expecting to spend at budget and 14% expecting to overspend their IT budget. While 78% of CIOs reported increasing IT spending in 2005 over the previous year, only 64% are expecting to increase spending in 2006. However, this caution has not made its way into spending cuts yet, only 6% anticipate spending less in 2006 than in 2005.