Middle East business leaders now expect IT budgets to return to pre-downturn levels in the near future, says a report.

In a survey conducted at the SAP User Group Middle East and North Africa (SUG-MENA) Executive Exchange meeting hosted at the SAP Forum in Dubai, all executives questioned also stated that the role of the CIO has become more strategically important to businesses in 2009.

The survey, which was first conducted in March during the SUG-MENA meeting in Bahrain, sheds valuable insight into the shifting perceptions of the importance of IT investment.

“A large number of SAP customers in the region are members of SUG-MENA, and the forum provided an ideal platform for us to engage with senior SAP executives and receive insights into SAP’s future product strategy and overall direction. We were also given the opportunity to share our own ideas on how SAP can further support the development of its customers and the region as a whole,” commented Salem Al Angari, president of SAP User Group SUG-MENA.

Of those executives polled, 92 percent believe that strategic IT investments can help companies survive and prosper during the economic downturn.  In addition, 75 percent had also witnessed an increase in internal competition for IT budgets throughout the year (more than a 10 percent increase compared to March results). This strongly suggests that many companies are shifting from a cost focus to a value perspective, and are becoming increasingly aware of IT’s role in creating a sustainable business model, minimizing exposure to risk and displacing the competition, said the survey.

About 83 percent of those questioned confirmed that their company would not be using IT assets as a means of generating cash in 2009 (compared to 58 percent in March) through actions such as the sale and leasing back of hard assets and outsourcing agreements.

“The region’s leading businesses have recognized that strategic IT investments which deliver tangible value to the business are essential in order to excel in today’s business environment. Organizations are also using IT to gain the clarity and transparency necessary to anticipate and respond to customer needs,” said Sergio Maccotta, managing director, SAP Middle East and North Africa.

In the survey, executives also voiced their thoughts in regard to their primary concerns, which included a lack of understanding about the value of IT from some areas of the business, and insufficient resources to support essential projects.  However, the consensus regarding the rise of IT budgets illustrates that the latter issue may be alleviated in the foreseeable future, said the survey. – TradeArabia News Service