TOP TEN CONCERNS > Managing Budgets

Budgets are as tight as ever. In last year’s research they were CIOs’ biggest concern and this year they are still near top at second place. Since the last recession where IT budgets were pared to the bone, organisations are striving to keep a really tight control over them, even though they still need innovative IT to keep ahead of the competition. Savvy CIOs are seeing savings through standardisation of the IT infrastructure so new systems can be financed without increasing budgets.

News

Easyjet struggles with fuel prices, but integration a success

Fuel bill rises as Easyjet lowers IT costs full year results to March reveal

“Prudent” Lloyds TSB could weather banking crisis

Cost management and good investments provide a cheery banking story

Thomson Reuters strong on efficiencies

Financial and scientific information services company looks ahead as combined giant

Strong UK market benefits Standard Life

Efficiencies continue to improve Standard Life performance

DWP steps up IT expenditure

Child Support Agency IT improvement continues to be a huge cost

UK gov't websites are 'out of control'

Report criticises unnecessary sites

Virgin Trains rolls out £750k financial system

Looks for simplification and automation of processes

Despite outsourcing deals, restructure dents AstraZeneca Q1

First quarter bears the brunt of costs of change at pharmaceutical giant

GSK reports operating profit fall

Competition and research hold back GSK, Lucozade adds some energy though

JP Morgan splashes £15m on Temenos platform

Bank wants to make products and services consistent globally

more news»

The CIO 100

1. Ministry of Defence

It’s little wonder that, with global security high on the agenda, the UK defence budget is set to increase from £29.7 billion in 2004/05 to £33.4bn in 2007/08. In real terms (after inflation) this represents average annual growth of 1.4 per cent and will amount to the UK’s longest period of sustained real term growth in planned defence spending.

2. Her Majesty’s Revenue & Customs

In the four years since top civil servant Gus O’Donnell, then permanent secretary at the Treasury, concluded that merging the former Inland Revenue with Customs & Excise would create a more efficient and effective tax collection and enforcement organisation, Her Majesty’s Revenue & Customs (HMRC) has faced a multitude of supplier and management-related IT challenges.

3. Royal Bank of Scotland Group

The Royal Bank of Scotland (RBS), the UK’s second largest banking group, in line with other players in the market, saw its profits rise again this year. It reported a pre-tax profit of £9.2 billion, 16 per cent up on figures last year.

4. BT Group

BT’s IT function has had an impressive 12 months. It has ‘upskilled’ more than 5,000 IT professionals, so that now 3,100 are engaged in customer-facing, revenue-generating work rather than internal IT projects. It has also achieved a first-time, net reduction in the systems estate, savings of approximately 19 per cent in unit costs two years in a row, while simultaneously tripling its output, and doubling its delivery speed.

5. Department for Work & Pensions

The Department of Work and Pensions (DWP) pays out £115 billion a year to more than 26 million customers. While its IT systems may not always have been in the spotlight for all the right reasons this past year, the department headed by Joe Harley has certainly been central to some major changes.

6. Royal Mail Group

With its market now open to competition, the last year was a bit strange for the Royal Mail Group business but in IT terms it was pretty good, according to its group technology director David Burden. “We still managed to cut 10 per cent from our costs, while at the same time absorbing a range of new technologies and systems,” he says.

7. Lloyds TSB Group

Lloyds TSB is currently the fifth largest banking group in the UK, operating in England and Wales as Lloyds TSB; and in Scotland as Lloyds TSB Scotland. Its other subsidiaries include the mortgage bank Cheltenham & Gloucester; life assurance company Scottish Widows; and finance house Blackhorse.

8. HBOS

HBOS is the UK’s largest mortgage and savings provider and the number one provider of new investment products. It provides retail, business and corporate banking, and insurance and investment services through its multi-brand strategy in the UK and internationally.

9. Unilever

Anglo-Dutch consumer goods giant Unilever produces 400 brands in 14 categories of food, home and personal care products. It operates in nearly 100 countries, has 365 manufacturing sites, and employs more than 220,000 people.

10. BP

BP is one of the largest integrated oil companies in the world, with an estimated global market share of around three per cent of oil and gas production and four per cent of refining capacity in the major global markets in which it operates.

more CIO 100»

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