The latest CIO Confidence Poll from Forrester Research, Inc. (Nasdaq: FORR) recorded the lowest levels in CIO sentiment regarding their future climate since the poll began in Q1 2004. The quarterly assessment measures the confidence of approximately 200 CIOs at North American companies in the health of their industries’ business and IT spending.

While business gains and increased hiring contributed to 70 percent of CIOs reporting either a strong or very strong current business climate, sentiment about the future business climate took a sharp downturn. Sentiment dropped by about 10 points on our 100-point scale — more than twice any prior change. The percentage of CIOs that expect worsening conditions has risen sharply over last year — though it is still only 11 percent.

What does this mean for IT spending?

These increasing concerns will not affect current spending, but will make their way into plans for future spending.

  • The poll indicated that spending should remain strong for 2005 with 74 percent of CIOs expecting to spend at budget and 14 percent expecting to overspend their IT budget.
  • While 78 percent of CIOs reported increasing IT spending in 2005 over the previous year, only 64 percent are expecting to increase spending in 2006.
  • However, this caution has not made its way into spending cuts yet — only 6 percent anticipate spending less in 2006 than in 2005.

The research mentioned in this release, “CIO Confidence Poll: Q2 2005,” is available to Forrester WholeView 2™ clients and can be found at