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IT shops losing control over technology

Jaikumar Vijayan | April 30, 2014
IT consumerisation exacerbates shift in tech spending.

"IT needs to up their game," Joe said. The goal should not only be on keeping the lights on, but also on lending IT best practices and consulting expertise to business stakeholders.

Many IT organizations already have the experience and the expertise with technology integration, vendor management and contract management that business units will likely struggle with on their own, he said.

Importantly, most C-level executives are already comfortable with the idea of the IT staff interacting directly with their customers and partners in a consultancy role, Joe said. In more than one-third of the companies surveyed, IT departments have already begun serving primarily as service brokers to solve specific business requirements.

The responses in the Avanade survey reflect a trend that has been going on for sometime but appears to be picking up speed with the emergence of new mobile and consumer technologies.

In a survey of 119 CIOs by Constellation Research earlier this year, about 44% said they would like to spend more time on innovation but were stuck maintaining infrastructure. Meanwhile, tech-spending patterns have shifted. While companies are spending more on technology overall, IT organizations have seen little of that increase.

In 2014, technology spending by line of business will grow between 17% and 19% compared to last year, said Ray Wang, principal analyst at Constellation Research. Meanwhile, IT budgets will grow by a modest 5% at best after dropping by about 5% last year, he said.

"A lot of the tech budget has shifted to the line of business. That's marketing, HR, operations, supply chain and logistics," Wang said.


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