A survey of CIOs shows that many are concerned that IT budgets don’t focus enough on innovation.

The survey, conducted by German business software group SAP, found that a strong focus on operations means that IT budgets cannot earmark enough funds to implement new technologies.

“A third of companies said that their current IT strategy is too focused on ”˜simply keeping the lights on" in the day-to-day running of existing IT systems,’” the study said.  “An alarming 60 percent of companies said that this IT strategy has held them back from investing in innovation.”

SAP talked to 487 senior IT decision-makers including CIOs and IT budget holders in Britain, Russia, Germany, UAE, France, Saudi Arabia, Italy and Qatar.

Forty-four percent of respondents said the trend toward less spending on innovation is hurting productivity in their companies, while 43 pc also claim they have missed out on potential cost savings.

When asked how the lack of IT innovation investment would affect their companies over the next three years, one-third of respondents predicted lower revenue growth than their businesses would need. Moreover, 38 pc said it would result in a failure to meet regulatory and compliance demands.