CIOs predict robust IT funding despite the recession

Tue, 21-Oct-2025

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CIOs predict robust IT funding despite the recession

Web Desk
June 25, 2022

CIOs predict robust IT funding despite the recession

CIOs say they’re under pressure to increase certain IT investments.
Covid-19 and cloud computing have emphasized business technology.
Gartner VP John-David Lovelock said 90% of a CIO’s spending is cloud subscriptions.

CIOs say they’re under pressure to increase certain IT investments and lower others as recession worries build. They don’t foresee as much tightening as in prior recessions, however.

Covid-19 and cloud computing have emphasized business technology and digital transformation, say CIOs.

But POC testing and some other costs might have to wait for a while. Executives and experts agree that the investment is worth it if it improves customer service and makes the company more competitive.

Gartner VP John-David Lovelock said 90% of a CIO’s spending is cloud subscriptions. 10% supports proof-of-concept testing. Staff PCs and software upgrades. According to Mr. Lovelock, reducing discretionary expenditure is unlikely since the savings would be negligible and would have an immediate negative impact on the workforce.

Federal Reserve Chairman Jerome Powell cautioned Wednesday that the central bank’s struggle against inflation might cause an economic meltdown.

Rocket Mortgage LLC, Salesforce Inc., and other CIOs said software efforts with solid business cases will grow more important.

“I feel pressure to use technology to create more efficiency, to create more scale, to automate more,” said Brian Woodring. Rocket Mortgage’s CIO. Now is the moment to increase IT investment to provide a better consumer experience and capture market share, he added.

Mr. Lovelock said 2008 IT spending was smaller than 2001 and grew with 2020 market turbulence. IT will help firms make money during the crisis, but he expects budget cuts elsewhere.