Mumbai: Around 60 percent of Indian companies have planned an increase in capital spending on information technology during the current year, according to an industry study conducted by Ernst & Young India and CIO Klub.
The study called "The Enterprise IT Investment Trends Survey 2012" is based on a survey of over 184 chief information officers (CIOs).
"Our survey results reflect the overall market sentiment of uncertainty and cautious optimism. While IT budgets experience a steady increase over previous years, the CIOs will be cautiously optimistic in the outlays. A large part of the increase in IT budgets will be spent on innovation and identifying opportunities to realise business benefits," Ernst & Young's Partner-Advisory Services' Devendra Parulekar said.
The survey found that banking and financial services and utilities sectors have a balanced allocation of budgets for maintenance and innovation while transportation and logistics, automotive, media and entertainment sectors lead the innovation story.
"Technology, infrastructure and manufacturing sectors too have more than 50 percent of budgets planned for innovation. Real estate and construction sectors, along with life sciences, still continue to plan larger spends of more than 60 percent for maintenance and compliance," the report said.
According to the survey, the top five priorities for CIOs are business continuity, cost reduction, improving infotech function effectiveness, business intelligence and information security.
Around 48 percent of respondents have identified business continuity as one of their top five priorities. More than 55 percent of respondents have identified business continuity as a priority for FY 2012-13. Sectors like auto, chemicals, professional firms and services will focus on business continuity.
About 43 percent of respondents identified reduction in costs as an important initiative, while 42 percent of respondents identified improving infotech function effectiveness as a priority for FY 2012-13. Sectors like technology, infrastructure, media and entertainment have identified infotech function effectiveness as a key priority.
Another 40 percent of companies surveyed identified business intelligence as a priority for FY 2012-13. Focus on business intelligence is more in larger organisations with revenues greater than Rs 5 billion. Sectors like auto, banking and financial services will focus on business intelligence applications in the coming year, the survey said.