CIOs warn IT investment could fall by more than 20pc in years ahead

13 Jul 2020

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PwC’s latest European CIO survey has found that while the transition to working from home has worked well for many, IT investment is likely to suffer.

CIOs are being advised to “keep their seats in the boardroom” to ensure funding continues into key IT infrastructure in the years ahead. It comes after PwC’s latest European CIO survey found that 41pc of 150 CIOs and chief digital officers (CDOs) in Europe – and 36pc of those surveyed in Ireland – are planning a reduction in funding to new projects.

Three-quarters said that they would be planning to reduce investment by more than 20pc. In PwC’s recent survey of Irish chief finance officers, 37pc also reported to be planning a reduction in digital investment, which was significantly more than global counterparts at 18pc.

Robert Byrne, partner in technology consulting at PwC Ireland, said: “Covid-19 has put a spotlight on how critical the role of technology is within organisations.

“More investment in digital is needed, not less. And particularly with the move to remote working and the surge in online, companies who do not invest will be at a competitive disadvantage.”

‘An accelerated drive towards digital’

Meanwhile, CIOs and CDOs said that the transition to working from home was relatively straightforward, with 89pc of organisations setting their teams up within the space of five days and 72pc within three days.

During this time, 84pc of CIOs rated their IT performance as good or better. Those surveyed identified new priorities including investing in digital customer experience (55pc) and improving resilience in cybersecurity and privacy (54pc).

“Given the current landscape, we now expect to see an accelerated drive towards digital across all sectors,” Byrne said. “This is a theme we saw prior to Covid-19 and we expect, as organisations seek to remain competitive, to see an acceleration to digitalisation to help attract and retain customers.

“CIOs and CDOs really need to keep their seats in the boardroom by acting as business partners ensuring all new digital business models are well supported and embedded in firm activities across every firm level.”

Colm Gorey was a senior journalist with Silicon Republic