Most UK CIOs need clarity on cloud services, according to a report released by Xantus.

The report, 'Supporting Business: The CIO Challenge', also shows more than 70 per cent of CIOs in large companies with a turnover £250m - £1bn believe their departmental budgets will rise over the next 12 months, with more than half expecting an increase greater than 10 per cent.

But despite the anticipated boost in IT investment, less than half (48 per cent) of those surveyed think their departments are fully prepared to support growth. The financial services sector and smaller organisations rate skills as the priority in enabling IT to support the aims of their organisation as a whole, while public sector and manufacturing are more focused on technology.

Obstacle and solution to growth...

The biggest obstacle for growth appears to be legacy hardware and systems (41 per cent), although for many CIOs (43 per cent) the application of new technology, such as cloud computing will be key to overcoming these issues.

Overall, IT leaders are broadly positive about the future (56 per cent), although cost cutting still remains a priority for many (40 per cent).

Steve Watmough, CEO of Xantus, commented: "The past 18 months have seen immense pressure on IT budgets. Although our research shows that CIOs believe this pressure is easing, corporate and IT leaders, supported by a well-resourced IT department, still need to drive their businesses