India Based Firms Make Wise IT Investments

by CXOtoday Staff    Aug 18, 2009

A nine-country ISACA Value of IT Investments survey reveals that India-based participants were the most advanced in adopting effective value management practices.

Conducted by ISACA, an association of 86,000 IT governance, security and assurance professionals, the Value of IT Investments survey found that half of the respondents believe they are realizing between 50-74 percent of expected value from their IT investments, and nearly a fifth believe they are realizing 75-100 percent. Yet, half measure the actual value only to some extent, while one in 10 does not measure it at all.

On a positive note, 76 percent of respondents are aware of the Val IT framework, and 44 percent of organizations questioned have such a framework or guidelines in place to select the investment that will result in the highest value.

The survey identified some regional differences - specifically between established economies and fast-growing ones. Of the nine countries surveyed - Australia, Canada, France, Germany, Hong Kong, India, Mexico, the UK and the US - the India-based participants were the most advanced in adopting effective value management practices and assigning accountability for those investments to the business.

Seventy percent of respondents organizations in India have a framework for selecting the IT-related investments that will result in the greatest value and 57 percent fully measure value.

In addition, almost half of Indian organizations are increasing IT-related investment based on potential or expected contribution to business value, and 63 percent said there is a cross-departmental understanding of what constitutes value in IT investment - a figure significantly lower in the UK, at just 22 percent, and the US, at 34 percent. Top-down management responsibility for optimizing IT investment was also evident, with one-third of respondents indicating board or board chair level.

Anjay Agarwal, CMD of AAA Technologies, commented, "Many e-governance projects are being undertaken by government in India and huge IT investments by other organisations. Implementation of Val IT will lead to successful implementation of IT projects and aligning with overall business goals.

John Thorp, chair of the Val IT Development Team for ISACA and president of the Thorp Network, said the results of this survey reinforce findings from earlier studies that, while most enterprises feel they are realizing value from IT, few have a clear understanding of what value means, and even fewer measure it.

Thorp said, "These findings support the results of a number of other studies, anecdotal evidence and my own experience that most decisions related to value from IT are subjective, and all too often are based on perception and emotion rather than on facts."

Organizations will not come close to realizing the full value of their IT investments until they adopt effective value management practices and assign accountability for the realization of value from those investments to the board and CEO, rather than abdicating it to the CIO, Thorp said.

Full results of the survey can be obtained by contacting