regulated industries, and legislation shows that any company may be at the mercy of outdated systems that can't meet the needs of increased regulations.

Sign No. 9: IT Costs Increase, Agility Decreases. Direct business purchasing of IT-related services drives up central IT costs and drives agility downward.

Sign No.10: Green IT. Today's CIOs are likely to have targets that will involve substantial infrastructure changes to achieve green IT objectives. These changes will almost inevitably carry implications for the application portfolio.

To avoid the so called IT train wreck, Gartner advises that organizations put IT strategic planning, rather than tactical budgeting at the heart of the CIO management agenda.

"By developing an application strategy and focusing on retiring older systems, CIOs will be best placed to fund an IT modernization program that works to drive the IT organization to achieve a desired state," said Andy Kyte, vice president and Gartner Fellow.

Gartner analysts will provide more detailed analysis on IT modernization at the upcoming Gartner Symposium/ITxpo 2008, taking place October 12-16 in Orlando, Fla.