Digitisation sending tremors through IT budgets

Budgets might stay the same on the outside, but will suffer significant changes on the inside.

 

IT budgets for 2017 will remain fairly flat on average, but will experience significant changes within, according to a new report by best practice insight and technology company, CEB. CEB believes the changes can be attributed to 'volatility' across organisations, as IT becomes tightly integrated into business strategies. Just more than half (51 per cent) of organisations surveyed for the report said they expect a bigger IT budget next year, and more than a third (38 per cent) expect it to shrink. 

A quarter (25 per cent) expect a change greater than 10 per cent of the overall budget, which is quite a substantial change, CEB adds. 

“While IT budgets look flat on average, that average is masking digitisation’s influence on corporate IT,” said Andrew Horne, IT Practice Leader, CEB.  

“In many companies, leadership teams are looking to IT to recommend technology and provide guidance needed to implement digital strategies, and IT budgets at those organisations are increasing. But for others, the push for digital transformation is happening outside of IT – if it’s happening at all – and budgets are going with it. In either situation, CIOs are making substantive changes to the IT operating and staffing model to support their organisations’ digitisation efforts, all of which means changes to budgets.”

CEB says digitisation efforts are affecting everyone, CIOs included. They are taking control of their organisation’s digitisation efforts, from online platforms to analytics. Almost three quarters (71 per cent) devote more time to this, than traditional business services responsibilities. Almost half (40 per cent) of organisations also expect to have a CDO (Chief Data Officer) next year.     

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