IDC man says IT on rebound

Sydney-based IDC analyst Peter Hind will tell CIOs in Auckland today that the IT industry is coming out of the slump it's been in for the past couple of years.

Sydney-based IDC analyst Peter Hind (pictured) will tell CIOs in Auckland today that the IT industry is coming out of the slump it’s been in for the past couple of years.

“It’s not a tidal wave of change but we’re coming out of the trough slowly,” says Hind.

Hind will present his Forecast for Management state-of-the-industry report at CIO magazine’s annual conference. He joins a line-up that includes Gartner analysts and CIOs of large organisations on each side of the Tasman.

Hind’s report is based on a survey of organisations in both countries. The raw numbers aren’t great — about 70 New Zealand organisations completed his eight-page questionnaire – but the trends successive surveys suggest are revealing.

“The dominant trend on the New Zealand CIO agenda is meeting user expectations,” says Hind. That’s become a greater preoccupation than in the past several years, when reducing cost was the major concern of surveyed CIOs. Perhaps reflecting the fact that any downturn has been less acute in New Zealand than in Australia, CIOs across the Tasman still rate cost reduction as their main mission.

Hind says evidence for his claim that the industry’s climbing out of the trough is that a growing number of respondents report that IT is seen as a source of competitive advantage.

“However, this comes off an extremely low base and follows a dramatic drop revealed in the last survey.”

Hind finds himself agreeing in part with Harvard Business Review editor Nicholas Carr, who wrote earlier this year that IT has had its day. But Hind believes that what will take its place in the sun — telecommunications — will be built on a foundation of IT.

“Telecommunications comes out of IT; already we’re talking more about ICT.”

The CIO conference — with a theme of Driving the Business Value — is on at the Carlton Hotel toay and tomorrow.

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