Gartner Survey Shows One in Four German CIO Respondents Have Adopted Cloud and More Plan to Increase Cloud Investments

Seventy Per Cent of CIOs Plan to Change Sourcing Strategies in the Next Two to Three Years

Surrey, (PresseBox) - One in four German CIOs have adopted cloud, and 70 per cent plan to change sourcing strategies in the next two to three years, according to Gartner, Inc. In the fourth quarter of 2013, Gartner's Executive Programs conducted a survey of more than 2,300 CIOs worldwide.

In today's blog post, Frank Ridder, managing vice president at Gartner, examined the responses of the 60 German CIOs who took part in the survey.

Mr Ridder said:

Overall the survey results show that the management focus for German CIOs is similar to the rest of the world. However, what has changed from 2013 is an increasing focus on growth and innovation while still prioritising efficiency. For 2014, the survey found that 4 per cent more German CIOs (21 per cent overall) will emphasise growth and innovation compared to last year, while 27 per cent will continue to focus on efficiency, down 3 per cent year over year. Likely reasons for this change are a healthy local economy, the completion of efficiency projects that started in the economic crisis, and the implementation of ongoing efficiency programmes.

Looking at the top three technology priorities for German CIOs in 2014, ERP is the top priority followed by business intelligence/analytics and cloud. The CIOs surveyed reported that public cloud adoption reached 26 per cent, which is higher than both the worldwide average (see Figure 1) and that in EMEA, where 23 per cent of CIOs said they had made significant cloud investments this year. A quarter of the German companies surveyed have invested in a services solution, with software as a service being of most interest (73 per cent). This is followed by infrastructure as a service (47 per cent) and platform as a service (33 per cent). German CIOs use the cloud primarily to become more agile, and they are less concerned about the advantages of better quality and faster innovation. Based on client conversations and surveys an increasing number of German CIOs are planning to increase cloud investments.

Outsourcing is another sector where Germany is maturing rapidly. There are as many organisations in Germany using outsourcing services as companies that are fully insourced. Approximately half of the German organisations surveyed follow a mixed model, resulting in an adoption rate of 73 per cent for outsourcing (defined as 21 per cent fully outsourced, and 52 per cent as a mixed model). Given that only 12 per cent of German organisations plan to decrease their outsourcing spend, and 54 per cent plan to intensify their outsourcing endeavours, the market will grow.

Further changes in sourcing are also expected as 70 per cent of German CIOs are planning to change their sourcing strategies in the next two to three years because they need to continue making their IT systems efficient. Shrinking budgets and the need to concentrate on business value at all times are forcing CIOs to embark on different sourcing approaches.

Mr Ridder will further discuss the results of the CIO Agenda Survey at the Gartner CIO & IT Executive Summit 2014, 4-5 June in Berlin, Germany.
More information about the Summit can be found on the Gartner Summits Web site.

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