IT Spending Staying Flat

IT spending this year remains relatively flat, according to a survey released this week by Morgan Stanley & Co.

More than a third of the 225 IT executives surveyed last month say they expect IT spending to be down from 2002, while an equal number expect an increase in tech expenditures. Nearly one of three say their IT budgets are flat.

Most CIOs--more than 70%--say events in Iraq and the Middle East have had no influence on their companies IT spending. Instead, they cite current economic conditions as having an adverse effect. However, 44% say the Iraqi war has had some impact on their businesses.

CIOs are less optimistic than they were in November about current economic conditions: 28% say they have a negative outlook vs. 21% who expressed pessimism last November. Those optimistic about economic prospects fell to 35% from 44%.

However, at home--at their own companies--61% of the CIOs feel positive about business prospects.

What are the CIOs' top priorities for the first half of 2003? Application integration, security software, and storage hardware. Application integration and security software have held the top two positions since January 2002.