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TECHBITS.(INTERNET & TECHNOLOGY)
Byline: Brian Deagon and James DeTar
CIOs Don't See '02 Budget Boost
More than 40% of chief information officers now think their budgets won't pick up until 2003, according to the CIO Magazine Tech Poll released Thursday. That's up 10% from CIOs polled last month.
And the number of CIOs who thought that a pickup would get under way in the second half of this year shrank by half to 11%.
It suggests the long-awaited tech recovery will have to wait some more, given that CIOs oversee the bulk of business spending on information technology.
They do expect small budget increases over the next 12 months, but much of that is for maintenance and replacement -- not the kind of spending that would fuel a rebound in the tech sector.
"Companies are not in a mood to make major commitments when they are spending most of their time having to make sure the balance sheet is pristine," said Ed Yardeni, chief investment strategist for Prudential Securities Inc.
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