IT departments across the UK will soon face major budget cutbacks over the next five years as companies try to get a handle on increased costs, new research has claimed.
A shocking 92 per cent of IT departments are under pressure to reduce expenditure, according to a poll of over 900 IT leaders by Fuze.
On average, CIO are being asked to make average savings of 12 per cent of their current budgets by 2021, meaning many are needing to make tough decisions sooner than expected.
Unsurprisingly, these cuts are leading many CIOs to feel that their department is being judged unfairly, with 57 per cent saying their board are blinded by making savings rather than encouraging innovation, and 74 per cent claiming that they can’t focus on new trends and the introduction of new technologies due to these pressures.
Nearly half (47 per cent) of those surveyed said that they would be preferred to be measured on their ability to innovate, with 40 per cent saying they'd want to be judged on the revenue they generate, rather than the costs they can eliminate.
"For better or for worse, cost reduction will continue to be a major issue for IT, yet businesses should not lose sight of the bigger picture," said Kris Wood, VP EMEA at Fuze.
"IT leaders are ready to make radical changes, but to succeed they must educate senior leadership on the critical role technology innovation can play in creating a competitive advantage and driving up revenues. Simplifying the IT and communications approach is an ideal starting point, giving IT teams the time to focus on new initiatives that move the business forward.”