CIO and CFO Priorities in 2026: Information Technology Budget

Here’s the problem: 70% of companies are spending more on their information technology budget as a share of revenue. But only 20% of CFOs are happy with the return on these investments.

This gap shows a major challenge. Companies pour resources into technology. Yet many can’t turn those investments into real business value. The solution isn’t spending more or less. It’s rethinking how technology budget decisions are made.

Recent research of 3,000 CIOs and CFOs shows something important. Successful organizations break down the walls between financial and technical leadership. 

This team approach to information technology budget management changes how companies divide resources and measure success.

The Evolution of Information Technology Budget Authority

The traditional framework for managing a technology budget was straightforward: CIOs proposed tech initiatives, and CFOs approved funding. This model no longer reflects reality.

Today, 72% of CFOs lead the process of setting technology investment budgets. Even more significant, 41% of CIOs report that their CFO counterparts now influence or make core tech decisions that were once IT’s exclusive domain.

This shift is an evolution, not a power struggle. CIOs continue to drive tech modernization, asking critical questions about scalability and system integration. 

Meanwhile, CFOs contribute an essential business perspective. They ensure every dollar connects to measurable outcomes.

The challenge lies in bridging communication gaps. Survey data shows that 85% of CFOs believe CIOs need stronger business acumen. And 86% of CIOs feel CFOs need deeper technical knowledge.

CIO Priorities Shaping the Information Technology Budget

CIOs today face huge pressure to balance innovation with stability. They must upgrade old systems while keeping operations running, all within their budgets. 

Investment patterns show a practical approach to new tech. Between 40% and 50% of CIOs have already spent parts of their budget on AI, machine learning, and predictive analytics. Another 35% to 40% plan to invest this year. Only 2% to 5% have no plans.

The adoption strategy matters as much as the technology. When asked how they’re adding new capabilities, 31% of CIOs use a “supplement” approach. 

They add specialized solutions around existing systems rather than doing costly replacements. Only 27% are upgrading to vendor platforms. And 23% are replacing complete systems.

This careful approach reflects today’s complex IT reality. Fewer than 2% of surveyed CIOs have more than 40% of their apps on a single model. 

The app landscape is hybrid by necessity. Technology budget allocations must account for this.

CIOs’ Key Investment Areas

Where do CIOs spend their resources? Three areas stand out. Each one tackles key challenges in building future-ready organizations.

• Generative AI tops the list. Beyond the hype, leaders are finding practical uses in dev work and operational intelligence. Yet 87% of CIOs say clean historical data is the foundation for AI success. Most organizations have significant work ahead.
• Process automation is another major budget allocation. CIOs are cutting repetitive manual work. They’re building scalable frameworks that deliver value without hiring more people.
• Modern integration becomes important as companies adopt many platforms and cloud services. Spending resources on integration stops data silos and disconnected workflows that hurt productivity.

The pattern is clear: CIOs are using money to build more adaptive, responsive organizations. Success requires alignment with CFO priorities and clear ways to measure business impact.

CFO Priorities in Technology Budget Management

CIOs focus on building capabilities. CFOs ensure that resources strengthen financial performance. Current satisfaction levels show room for improvement.

Only 20% of CFOs are satisfied with the business improvements from tech spending. Another 26% see mixed results. And 17% report that most allocations have no clear connection to business goals.

This frustration drives more CFO involvement in tech decisions. Financial leaders aren’t stepping on IT territory. They’re filling a gap in accountability and business alignment.

Focus Areas for Budget Oversight

CFOs approach technology budget oversight through a different lens. They focus on financial discipline and measurable business impact. Three focus areas emerge in their evaluation.

• Alignment with business goals ranks as the top priority. CFOs want resources directed toward revenue-generating initiatives (28%), risk management and compliance (27%), and transformative next-gen technologies (25%).
• Reducing legacy system costs is another critical concern. CFOs encourage shifting allocations from maintenance to strategic development. This requires finding cost-effective ways to support existing systems while freeing resources for innovation.
• Expanded ROI evaluation now extends beyond traditional financial metrics. CFOs measure budget effectiveness through operational resilience indicators like reduced downtime and improved customer response times. These outcomes may not immediately impact income but create compounding value over time.

Technologies delivering the strongest return on information technology budget investments include security technologies, AI and analytics, and customer-facing SaaS platforms like CRM. 

Interestingly, ERP upgrades and migrations deliver the least value relative to their cost.

Approaches to Technology Budget Optimization

IT staff augmentation has become a strategy for navigating this challenge. This model lets organizations engage expertise on demand and then scale resources as needs evolve.

• Cost predictability aligns with CFO priorities. Rather than absorbing permanent salary costs, benefits, and onboarding expenses, companies pay for talent as needed. This makes tech budget planning easier to tie to project-level ROI.
• Speed and agility support CIO objectives. Staff augmentation eliminates lengthy hiring processes. Teams can begin delivering value within weeks when opportunities arise or challenges surface.
• Access to specialized expertise addresses skill gaps without permanent commitments. As emerging technologies evolve, people who can install them well are often difficult to find. Flexible staffing provides access to professionals who have solved similar problems across many organizations.

Currently, 36% of CIOs already outsource application support, and 34% use managed services. Organizations using outsourced support report benefits including better app customization, higher quality of service, and faster issue resolution.

Building a More Effective IT Budget Framework

CFO and CIO roles are merging. This is a real shift, not a trend. Companies that build strong partnerships between these two leaders are already seeing results.

Staff augmentation helps within this framework. When done right, it gives teams three things: the speed to move fast, the skills to execute well, and the budget clarity that both CIOs and CFOs need.

Partnering with experienced providers like Techunting for staff augmentation services gives you access to specialized skills. You keep the flexibility and cost transparency that modern information technology budget management demands.