IT budgets are expected to increase an average of only 3 percent this year, down from 6 percent reported last year, according to CIO Magazine's latest Tech Poll of 200 IT leaders.

The survey, conducted in April, showed that budget increases are in store for nearly half of CIOs, up from 32 per cent roughly 9 months ago.  

Just one in five CIOs anticipate IT budget cuts.  There is also a big shift underway in terms of where IT spending is being targeted. CIOs are increasing spending on outsourced IT services, including cloud, plus  mobile/wireless and applications.