VARDIS 2023 PE CIO/CDO SURVEY TRENDS WORTH WATCHING
/ IT & DIGITAL INITIATIVES CENTER TO INVESTMENT SUCCESS
• 45% of CIOs report that IT transformation is central to Investment Thesis
• 93% describe their investor as “digitally savvy” or “aspiring to being digitally savvy”
/ COMMUNICATION GAPS IN THE SYSTEM
• Only 19% of CIOs are measured by a quantifiable hurdle IRR, ROI, MOIC, etc. for IT or digital initiatives
• 15% of CIOs are not aware of role of IT in their investor’s initial investment thesis
/ NOT JUST SCOREKEEPING...A CORE ACTIVITY, AND FUNDED THAT WAY
• Over 70% of CIOs identify “Growth/Increasing Revenue” revenue growth” as their most important area for investment in the next 18 24 months
• Average spend on IT/Digitization initiatives is 3.4% of revenue
• Spend CAGR is over 9% since 2019 with 36% reporting annual increases of more than 20% since 2019
/ CIO COMP UP (THOUGH STILL A RELATIVE VALUE). TIME FOR CIOs TO UP THEIR GAME TO SIT AT THE TABLE.
• Average target CIO comp now up to $335,000
• Less than 25% are first time CIOs experience counts
• CIOs need to justify a seat at the table cannot accept “I don’t know” in response to questions about their investor’s investment thesis or manage to a strict internal ROI or IRR hurdle on IT/Digitization Initiatives