Mizuho's recent survey of CIOs paints a positive picture for the IT services industry, particularly regarding the growing adoption of Generative AI (GenAI) services.
"Our survey points to several bright spots in IT Services," says Mizuho, which polled over 50 CIOs from various mid-sized companies across different sectors.
A key takeaway is the significant impact of GenAI. Mizuho found that over 80% of respondents have already engaged IT services firms for GenAI implementation, with a staggering 90% expecting to do so in the coming year.
Encouragingly, the survey suggests this growth in GenAI adoption translates to increased spending on IT services. Roughly 65% of CIOs indicated that GenAI expenditures represent new investments rather than reallocations from existing budgets.
Further bolstering the positive outlook, nearly 60% of respondents anticipate an increase in IT services spending over the next year.
Mizuho acknowledges that these findings might seem at odds with a broader sense of caution in the IT services sector. However, they attribute this discrepancy to the survey's focus on mid-sized companies.
Mizuho suggests that spending among these companies may not have been impacted as severely as that of larger corporations.
Overall, Mizuho's survey highlights a wave of GenAI adoption and a corresponding rise in IT services spending, particularly within the mid-sized company segment.