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Increased IT spending happening outside the IT department: CA Technologies

Increased IT spending happening outside the IT department: CA Technologies

Latest survey uncovers a shift taking place in the IT industry that local IT leaders need to be aware of.

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Technology spent by Australian organisations outside the IT department is increasing, a CA Technologies study has found.

The Vanson Bourne research, TechInsights Report: The Changing Role of IT and What to Do About It, found more than a third (35 per cent) of IT spending today is outside of the IT department.

CA Technologies A/NZ senior vice-president and managing director, Hope Powers, adds that number is expected to grow by 45 per cent in three years.

“The transformation of technology from a centrally-managed IT responsibility to a corporate-wide business enabler is transforming Australian enterprises and reshaping the way technology is purchased, deployed and used,” she said.

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With current IT spend controlled by the IT department set to drop to only 55 per cent in the next three years, Powers said it will need to play a “more strategic role in corporate decision-making” to stay relevant.

“The consequences for IT leaders are enormous as they must now become senior advisors who influence and guide, and not only manage, a corporation’s IT investments,” she said.

Half (49 per cent) of respondents also said IT needs to provide more training on new technologies, while just as many (47 per cent) said IT needs to strengthen its relationship with executive management to secure more support.

Powers said these results suggest IT leaders need to "better align" with the company's operations and "educate management" in an environment populated by technologies such as Cloud, Big Data and mobility.

Patrick Budmar covers consumer and enterprise technology breaking news for IDG Communications. Follow Patrick on Twitter at @patrick_budmar.

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