Takeaways from a 2024 CIO Survey

In recent years, businesses have faced significant changes, adapting to global challenges like supply chain disruptions, talent shortages, inflationary pressures, and geopolitical instability. During this time, the importance of IT departments has become more evident in strategic planning discussions. As we approach four years since widespread disruption began, it’s essential to understand how companies are prioritizing their IT operations amidst these ongoing changes. 

Clarkston Consulting conducted its inaugural CIO Survey in late 2021 to delve into the current and future priorities and challenges of senior IT professionals (CIO/CISO/CTO/VP) at large companies with revenues exceeding $350 million in retail, consumer products, manufacturing, or life sciences. Since then, they’ve conducted annual surveys to gain deeper insights into the IT landscape. In December, Clarkston conducted its most recent CIO Survey. 

We have included five key takeaways from the 2024 CIO Survey below. 

2024 CIO Survey Key Takeaways

Companies are shifting from using one ERP system to multiple/hybrid systems.

Of those surveyed, just over one-third (35%) of respondents use multiple or hybrid systems, up from 20% last year. The remaining respondents are split relatively equally between SAP, Oracle, and Microsoft. Of those who use a multiple/hybrid system, 9 in 10 respondents plan to keep their current setup. 

With more organizations moving toward a multiple/hybrid system, it is important to note that managing multiple systems can introduce complexities into business processes, as data may need to be transferred or synchronized between systems, which can lead to challenges in integration and maintenance. This often means that organizations will need to invest in a boarder range of expertise to manage and maintain these systems effectively. 

IT budgets are expected to increase in 2024.

Slightly more than half of respondents indicated that their IT budgets are set to increase this year, up from one-third last year. Generative AI or AI-related tools are at the top of the list of technologies these organizations will be investing in at 33%, followed by Internet of Things (IoT), cloud technology and solutions, and machine learning. 

While an increasing IT budget can have several implications, let’s focus on the fact that one-third of respondents expect to put this toward generative AI or AI-related tools. Most importantly, with more spending being put toward AI, organizations must invest in talent and infrastructure while considering the ethical and regulatory implications of AI – ensuring transparency and accountability while complying with data privacy and security regulations.  

Training resources will be focused on platform-specific training.

In 2024, six in 10 respondents plan to allocate training resources toward platform-specific training, up from 36% last year. On the other hand, fewer firms (23%) plan to provide training for communication or soft skills in the coming year. 

This data could have a few interpretations, but we see it as the following: individuals have cemented their soft skills, and organizations are now helping these individuals hone their skills in niche areas (i.e. specific platforms). This is incredibly promising as more individuals in IT will have the opportunity to become experts in platforms like SAP or Snowflake. 

AI is being increasingly leveraged for data analysis.

When asked about AI usage, 81% of organizations said they are leveraging AI for data analysis. As usage rises, companies are ensuring the ethical use of AI through training, regular monitoring, and more. 

It comes as no surprise that AI is being increasingly leveraged for data analysis, as AI is known for handling large volumes of data and identifying trends and insights from said data. However, as organizations continue to leverage AI for data analysis, they must have the right resources and infrastructure in place to ensure ethical use. 

Managed services are the most outsourced IT activity.

Nearly three-fourths (72%) of respondents are outsourcing managed IT services, with expertise, trust, and resource availability being the most important criteria for an outsourced partner to have. The ability to demonstrate success (via case studies or other methods) is also important. 

The trend toward outsourcing managed services presents a unique opportunity for firms like BCTG, pushing us further to ensure we have the right talent in place and ready to help our clients.  

Final Thoughts

The results of this 2024 CIO Survey provide a detailed view of IT departments across industries. To learn more about how BCTG can help your organization moving forward, contact our team today.   

This piece was adapted and updated from this piece originally published by a partner in our business ecosystem, Clarkston Consulting. Learn more about Clarkston here.