In the first quarter of 2009, CIOs experienced significant IT budget revisions as executives gained a greater understanding and solidified plans for addressing the global financial crisis, according to a worldwide survey of 900 CIOs by Gartner Executive Programs (EXP).

The survey was conducted from 1 March to 30 April 2009 and sought to gauge the potential impact of macroeconomic concerns on IT budgets. These CIOs encompass more than $77 billion in revised IT spending. Forty-six per cent of respondents said that their 2009 IT budget had changed since it was finalised. The results of this survey were compared with the results of the Gartner EXP 2009 CIO Survey, conducted from September to December 2008, which had more than 1,500 responses.

CIOs in the original survey reported a flat budget with a minor increase of 0.16 per cent. CIOs responding to the survey in the first quarter now report a weighted average decline of 4.7%. More than 90% of firms changing their budgets made a reduction in the first quarter, with the average reduction being 7.2%. Half the respondents reported no change in their IT budget, with the remaining 4% reporting an increase in their IT budget.

"CIOs reported that renegotiating vendor contracts and head count reductions were the primary focus areas for accommodating budget reductions," said Mark McDonald, group vice president and head of research for Gartner EXP. "CIOs report shifting more work to in-house resources and delaying capital expenditures more than reducing IT project investments."

First quarter 2009 IT budget reductions were reported across the board based on both size and geography of the organisation. CIOs in healthcare-related industries reported an average budget increase of 2.2%, but CIOs in all other major industries reported a decline in the first quarter of 2009. The largest decline was in professional services at -10%, followed by telecommunications and high tech at -10%, manufacturing at -8%, utilities at -4% and financial services at -4%.