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For IT departments it's save money now, add value later

IT departments in businesses across Europe are still focused on saving money, and not on adding value to the company, or innovating to support further growth.

Those are the results of a new survey by Vanson Bourne on behalf of Claranet.

Polling 900 European IT leaders, it was unveiled that despite growing IT budgets, these departments are still looking to cut costs and save money.

Today, 46 per cent said reducing cost was the top priority, compared to 34 per cent a year before. For 29 per cent, new revenue streams were their core activity, and for 25 per cent, that was increasing customer loyalty.

“European IT budgets are growing, which would suggest there’s a recognition within businesses of the importance of IT, however time and resources are still not being spent on more forward-thinking projects that can generate more revenue in the long-term,” said Michel Robert, Claranet’s UK managing director.

“It is clear from the data that the focus on cost reduction and ‘keeping the lights on’ we witnessed in last year’s report has been maintained and, for many, has actually increased. It goes without saying that costs are important, but it’s critical that IT departments can reposition themselves internally as enablers of business agility and innovation, rather than as cost centres.”

“Any business looking to digitally transform their processes must have the right partners and suppliers in place to carry out those standard tasks universal to IT departments. By working with a managed service provider, CIOs can effectively outsource this work and spend more time working on strategy and revenue-generating activities.”