Gartner has said that Chief Information Officers (CIOs) will come under increased pressure in 2006 to perform, while they transform their IT organization to become more externally focused. According to a worldwide survey of 1,400 CIOs by Gartner Executive Programme (EXP), executives now expect IT to play a significant role in business growth and competitiveness - a shift that will accelerate in 2006.

The survey finds that worldwide IT budgets are expected to increase by an average of 2.7% in 2006. This compares to an increase of 2.5% in 2005 and represents a modest budget increase for the third consecutive year. Growth is high on the CIO agenda as IT budgets at companies, which are planning to grow faster than the market, are increasing by an average 4.8%.

The survey also finds that business process improvement - making a company easier to do business with, is the top priority for the CIOs for the second consecutive year. In addition, 2006 will see CIOs becoming more externally focused; helping the business to grow customer relationship, improve competitiveness and increase overall efficiency.

However, in response to these priorities and changing work patterns, the survey also reveals that CIOs see three critical challenges in 2006. The three challenges cited by them are: strengthening the ‘information value chain’; building IT business skills; and getting closer to customers.