One in four govt CIOs expect budget cuts in '14


By Dylan Bushell-Embling
Monday, 12 May, 2014


One in four govt CIOs expect budget cuts in '14

Federal government CIOs worldwide remain under pressure to reduce IT costs, with more than one in four anticipating a budget decrease in 2014, Gartner said.

Public sector IT leaders are feeling the pinch more than their private sector counterparts - according to Gartner’s 2014 survey of 2339 CIOs, only 17% expect a budget cut this year.

Government CIOs are also losing control over IT budgets - this subset of respondents to the survey estimates that 33% of IT expenditures are being made by business units, outside of their authority.

Gartner Research Director Rick Howard said this is an issue that government CIOs must act to address.

“Regardless of how much IT spending happens outside of the IT organisation, CIOs must address the presence of shadow IT by affirming their position as the designated and recognised point of IT management responsibility,” he said.

“This doesn’t mean CIOs should attempt to restrict business-managed IT acquisitions and services. However, accountability for the information assets of a government agency cannot be distributed, and governance will ensure a corporate officer, the CIO, is at the table whenever or wherever an IT investment is being considered.”

According to the survey, nearly 5% of government organisations have appointed a chief digital officer to address the disruptive potential of new digital technologies and trends.

Over 75% of government CIOs polled also expect to change their technology and sourcing approach within the next three years. Gartner predicts that this trend will further drive the need for the role of IT broker.

Image courtesy of xiquinhosilva under CC

Related Articles

AI coding costs predicted to surpass average developer's salary by 2028

Rising token-driven AI spend is straining budgets and challenging cost justification.

The multi-agent network juggling act: how to avoid it becoming a circus

As organisations expand AI deployments from single-agent experiments to multi-agent networks, new...

Solving the human oversight problem in AI

Australia needs to engineer trust by applying human oversight where it manages real risk and adds...


  • All content Copyright © 2026 Westwick-Farrow Pty Ltd