More enterprise technology projects funded by business rather than IT
Research group IDC has announced the results of a survey of 1,200 business executives which reveals that 61 percent of technology projects are now funded by the business rather than the IT department. It also shows that IT spending driven by functional business areas will continue to outpace IT spending by the IT organization in the future.
"Technology has long been central to improving business processes, enabling greater speed, efficiency, and reliability," says Meredith Whalen, IDC's Senior Vice President. "As businesses embrace the 3rd Platform, built on cloud services, big data analytics, mobile computing, and social networking technologies, they are taking the critical first steps toward business process transformation and, in some cases, business model transformation. With such high stakes, the business is increasingly taking a front seat in technology initiatives."
Many of today's business executives are more tech savvy, they have easier access to technology through the cloud, and they're under pressure to implement new technology initiatives more quickly. This means it's unsurprising that executives outside of the traditional IT department are spearheading more IT projects. In fact, today’s line of business employees are looking more and more like an extension of the IT department as, on average, eight percent have a technical background.
The survey also found that IT continues to be a strong partner to its business colleagues. According to respondents, 85 percent suggest that, “compared to three years ago, IT is becoming a more valuable partner to my functional area".
"The link between technology and business results has never been greater and is shifting the buying center away from IT and towards the business," says Eileen Smith, Program Manager of IDC's Global Technology and Industry Research Organization. "Navigating these waters requires a change in your go to market approach focusing now on understanding the unique pain points and investment priorities across the various business functions".
For more information on the survey and Whalen's presentation at IDC's Global Regional Advisory Council event visit www.idc.com.