CIOs in the Asia Pacific region expect their IT budgets to grow 5.1 percent in 2018 because of digital plans of enterprises against the global average of 3 percent, according to Gartner.
CIOs in Australia and New Zealand are expecting an average 3.2 percent increase in IT budget, an improvement from the 2 percent increase expected last year.
CIOs in Asia Pacific are on the road from digital experimentation to digital scaling. However, a wall exists between those early digital experiments and pilots, and those that have achieved digital scale. 15 percent have achieved digital scale and 3 percent are already at the stage of harvesting and refining their digital strategies, which is on par with global peers.
According to 42 percent of Asia Pacific CIOs, the main barrier appears to be organizational culture, followed by a shortage of talent (24 percent) and resources (19 percent).
CIOs in Asia Pacific report higher adoption of disruptive technologies such as the Internet of Things (IoT), artificial intelligence (AI) and conversational interfaces than their global peers, according to an annual survey of CIOs by Gartner.
43 percent deployed or are in short-term planning for deployment of IoT technologies (37 percent globally) and 37 percent for AI (25 percent globally). They made investments in conversational interfaces by 28 percent (21 percent globally) and virtual reality (VR) and augmented reality (AR) by 20 percent (17 percent globally). 13 percent adopted blockchain or distributed ledger technology, compared to 9 percent globally.
“Asia Pacific is home to entrepreneurial digital businesses, as well as to established manufacturing, financial services, protein export, mining, government agencies and higher education establishments, that are driving the region up the technology adoption curve,” said Andy Rowsell-Jones, vice president and distinguished analyst at Gartner.
Gartner surveyed 3,160 CIOs worldwide included 537 across 17 countries in Asia Pacific (113 of those in Australia and New Zealand), representing approximately $3.4 trillion in revenue / public sector budgets and $49 billion in IT spending.
95 percent of CIOs expect their jobs to change or be remixed due to digitalization. IT delivery will take up less of the CIO’s time. The two biggest transformations in the CIO role will be becoming a change leader, followed by assuming increased and broader responsibilities. The job of CIO will extend beyond the traditional delivery roles to other areas of the business, such as innovation management and talent development.
The nature of the CIO’s job has changed from the role of delivery executive to that of IT business executive – from controlling cost and engineering processes, to driving revenue and exploiting data.
Asia Pacific CIOs have responsibility for areas of the business outside traditional IT, but significantly less than global peers. 44 percent are responsible for digital transformation (55 percent globally); 37 percent for innovation (54 percent globally) and 17 percent for enterprise change (28 percent globally).