Get All Access for $5/mo

How Can CIOs and CTOs Spend Increasing IT Budgets? CIOs and CTOs are increasing their IT budgets due to the need for new technologies.

By Steve Taplin

Opinions expressed by Entrepreneur contributors are their own.

CIOs and CTOs are increasing their IT budgets due to the need for new technologies. It is good news for the tech industry but also for companies looking to improve their bottom line. IT budgets are expected to grow. What will this mean for IT budgeting, leadership and the industry?

According to Gartner, investments in cybersecurity, analytics and the cloud are the technology trends top-level tech executives expect to see over the next 12 months. Gartner also found that IT budgets will grow by almost 3.6% in 2022.

Technology executives and CIOs should invest in technologies that give them a level of flexibility. There's a lot of benefits to hiring remote employees — from lower office rent to no commute, all the way to more overall efficiency. It is a trend that's been going on for a while and will be continuing in the future.

Related: Use Technology to Give Your Team Superpowers

Nowadays, executives have realized that tools are essential in keeping close tabs on their business and forecasting trends. They're beneficial for companies to be able to plan. Business intelligence and data analytics tools allow organizations to stay ahead of the competition, whether it be a business rival, a competitor outside the industry or even another organization in their industry.

Businesses are spending more time and money on integration technologies and APIs that allow different platforms to connect. APIs are essential for big brands to stay on top of their game. They allow companies to connect with different platforms and systems, which ultimately drives sales.

The world of technology is constantly changing, and the executives who operate these technological innovations need to remain ahead of the curve.

Related: How to Fake It Till You Make It in Tech

With change happening so quickly, businesses and IT departments are struggling to keep up. This new normal is something you need to adapt to, as the overall objective should be to take advantage of changes and remain competitive. According to Gartner, the average revenue increase for companies that operate in a highly modular and adaptable way is 7.7%. Organizations that don't consider themselves to be highly modular average about a 3.4% revenue increase.

To meet these challenges, CIOs and CTOs need to properly allocate funds in their IT departments. If they do it right, they can improve a company's infrastructure, advanced analytics, digital transformation and cybersecurity.

Related: 10 Technologies That Are Changing the World

Steve Taplin

CEO of Sonatafy Technology

Steve Taplin is the CEO of Sonatafy Technology (www.sonatafy.com), a premier nearshore software-development-services firm that provides its clients with expertise in cloud solutions, web and mobile applications, ecommerce, big data, DevOps practices, QA, IoT and machine learning.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Branding

ChatGPT is Becoming More Human-Like. Here's How The Tool is Getting Smarter at Replicating Your Voice, Brand and Personality.

AI can be instrumental in building your brand and boosting awareness, but the right approach is critical. A custom GPT delivers tailored collateral based on your ethos, personality and unique positioning factors.

Growing a Business

He Immigrated to the U.S. and Got a Job at McDonald's — Then His Aversion to Being 'Too Comfortable' Led to a Fast-Growing Company That's Hard to Miss

Voyo Popovic launched his moving and storage company in 2018 — and he's been innovating in the industry ever since.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Apple Reportedly Isn't Paying OpenAI to Use ChatGPT in iPhones

The next big iPhone update brings ChatGPT directly to Apple devices.

Business News

Is the AI Industry Consolidating? Hugging Face CEO Says More AI Entrepreneurs Are Looking to Be Acquired

Clément Delangue, the CEO of Hugging Face, a $4.5 billion startup, says he gets at least 10 acquisition requests a week and it's "increased quite a lot."

Business News

Sony Pictures Entertainment Purchases Struggling, Cult-Favorite Movie Theater Chain

Alamo Drafthouse originally emerged from bankruptcy in June 2021.