European IT spending stumbled in 2006, with enterprises planning to dedicate a full percentage point less of their total revenues to IT, although execs expect this to rebound in 2007. IT continues to be a mainly centralized function, with improved CIO visibility to the CEO and an influx of new CIOs contributing to increased collaboration between the business and IT sides of the enterprise. And the outsourcing of IT functions is a decidedly mixed bag, with outsourcing failing so far to gain a foothold in European enterprises, and half of the time failing to meet end user expectations when it does.