Tech CFOs Wary On Economy - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Tech CFOs Wary On Economy

CFOs at high-tech companies are more worried about the economy and their own companies' future than those in other industries, according to a study released last week by Financial Executives International and Duke University's Fuqua School of Business.

A recovery isn't imminent, say the majority of the 358 CFOs surveyed. Of the 43 tech-sector financial executives, a third say they're more optimistic about their companies' financial prospects than they were a quarter ago, 30% say they're less optimistic, and 37% don't expect any change. Across all industries, more than half of the CFOs are more optimistic about their companies' prospects.

Financial Perspective

But tech CFOs may be being overly cautious. IT spending as a percentage of overall budgets will increase to 10.5% in the third quarter, compared with 9.4% in the second, say the 300 IT executives that InformationWeek Research recently surveyed in its IT Priorities study for the third quarter.

Bob Williamson, who's leaving his post as CFO of broker-dealer firm VFinance Inc. to start his own company, says there's good reason for technology-company CFOs to be optimistic. The equipment purchased in the late '90s as companies rushed toward Y2K compliance is showing signs of age, and CFOs are probably getting pressured to replace it.

"We need to go back to a cycle of constant renewal," Williamson says. Technology vendors' experiences in recent years, he adds, have prompted them to be more cautious in their projections.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Remote Work Tops SF, NYC for Most High-Paying Job Openings
Jessica Davis, Senior Editor, Enterprise Apps,  7/20/2021
Blockchain Gets Real Across Industries
Lisa Morgan, Freelance Writer,  7/22/2021
Seeking a Competitive Edge vs. Chasing Savings in the Cloud
Joao-Pierre S. Ruth, Senior Writer,  7/19/2021
Register for InformationWeek Newsletters
Current Issue
Monitoring Critical Cloud Workloads Report
In this report, our experts will discuss how to advance your ability to monitor critical workloads as they move about the various cloud platforms in your company.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll