Why is IT spending leaking out of IT?

We've taken a detailed look at business IT spending in the past, and what role leading IT frameworks can play in the management of new IT endeavours, but new research points to another challenge in the near future.

Analytical firm Telsyte explained that a "new wave of disruption" is on the way this year, as new technologies force a change in traditional IT spending and strategies. Wearable devices, greater remote working initiatives and online services will push IT spending outwards, into other lines of business.

"Today's operations and marketing managers rely on technology to deliver business outcomes and the CIO is no longer the source of all procurement decisions," Senior Analyst Rodney Gedda explained.

It's easy to see why IT spending is spreading out from the IT department, as these new technologies are effective across a number of other areas. Marketing staff can take advantage of mobile devices for collaboration, and warehouse workers can use wearable devices for hands free computing.

According to the Telsyte Australian Digital Workplace Study 2015, a substantial 79 per cent of organisations have at least one line of business with a separate IT budget. Whether it's the aforementioned marketing department or even finance, other areas of the company are starting to see the value in more focused IT efforts.

Of course, while the growth is substantial, Gedda notes that the central IT function still manages around 70 per cent of the total IT spending (on average).

Giving a final word of warning, Gedda explained that with new mobile devices on the way businesses will also have another challenge, one that will require careful management.

As we've noted previously, training through an accredited provider in a proven IT framework – whether it's related to governance, security or best practice – can often be one of the best ways to better manage IT.

Speak to ALC Training if you're interested in learning more about our range of methodologies and frameworks.