Company IT budgets stabilising in Luxembourg

The worst IT budget cuts in firms in Luxembourg are over, nearly three quarters of IT leaders have suggested in a survey.

The Deloitte CIO survey found that 71 percent of CIOs and IT leaders in Luxembourg said their IT budgets were now either being increased or maintained.

Slow recovery

Despite this positive trend of budget increases across all industries, 29% of respondents in Luxembourg reported a budget decrease compared to 22% globally, suggesting a slower recovery in Luxembourg than in other countries.

The Luxembourg survey results further indicate an almost even division in terms of how the IT budget is split to cover business-as-usual (BAU) activities (53%) versus supporting change (48%).

The survey says this is an “encouraging result for Luxembourg to reflect upon” which suggests Luxembourg CIOs are investing more in developing their services. In contrast globally on average 60 percent of IT budgets are deployed to BAU.

Business Partners

The study found that IT sourcing strategies and increasing “offshoring” were seen as low priorities, meanwhile CIOs complained that they were not considered business partners in their respective companies.

Of the Luxembourg leaders who participated in the survey, only 26 percent rated themselves as “excellent business partners,” compared with 71 percent who said they were “fair business partners”.

IT to drive innovation

Finally, the CIOs and IT leaders surveyed suggested that IT could be better used to drive business innovation. Presently, only a third (32 percent) of respondents said that their function is seen as a hub of innovative development within their organisation.

The survey analysis was completed through the insights from over 720 technology leaders from 36 countries globally, including about 40 responses from leading companies and organisations located in Luxembourg, across various industries.

Click here to view the full report www.deloitte.com