Tech Investment Taking Place Outside IT Budget

by CXOtoday News Desk    Feb 12, 2015


As more and more businesses are investing in digital technologies and strategies, CIOs must spend lesser time running their IT departments and are expected to forge links with the business. A Gartner report states that CIOs are not only spending less than 40 percent of their time running IT this year but are also spending more time liaising with other parts of the business. The research firm also sees a chunk of the tech investment now taking place outside IT budget.

Instead of managing IT, CIOs told Gartner they will spend around a quarter of their time working with other C-suite executives, and 18 per cent of their time with business unit leaders. The 2015 survey showed that issues experienced by CIOs are far from universal and real differences exist at both a regional and country level.

For example, when looking at the number of companies that either have already invested or are actively experimenting, U.S.-based CIOs are — with the exception of the Internet of Things (IoT) — ahead of their global peers as those who have picked up on these technologies and have moved to either experiment with them or deployed them to a larger degree than their global peers.

CIOs in China are still seeing themselves as traditional CIOs taking care of traditional IT responsibilities (such as to support the business process running), and letting other senior executives take the digital leadership roles. CIOs in China should be more proactive and devote themselves to the digital world so that they can demonstrate their value to the business.

In the UK and Ireland, a generally positive outlook is translating to growth in average IT spend – with CIOs expecting to increase IT budgets by 1.4 percent in 2015, according to the survey.

In addition, there is an increasing amount of investment in technology occurring across the enterprise, with more than 21% of investment taking place outside of the official IT budget.

“The only certainty for CIOs seems to be the unstoppable advancement of digitalisation,” said Dave Aron, VP and Gartner Fellow. “Government, companies and our personal lives are being more deeply penetrated by digital capabilities, opportunities and threats.

 “Digitalization represents both a massive opportunity and new and heightened levels of threat for all countries and companies, and CIOs are facing new, more challenging and more exciting circumstances as digital moves to centre stage.”

As CIOs emerge from a long period of cost-cutting and restricted IT budgets, there is a renewed focus on strategic investments in information and technology that will enable business growth, the report said.

Gartner advised that CIOs should aim to spend a majority of their time working with the rest of the business unit leaders and external customers to ensure that the value of information and technology is understood and the right investments are made.