IT spending set to increase
Most firms in 2010 are predicting an increase in IT expenditure, most of this extra spend is to be focused on virtualisation, e-business and customer relationship management systems.
This prediction was made by a recent Accenture /Economist intelligence Unit survey of 500 executives in the US and Europe. The survey indicates that UK and Ireland are the most optimistic; with 63% of business leaders predicting IT spend increases during 2010.
The UK went into recession before many other western economies and many company executives believe that a focus on IT investment in the coming year is necessary to open up new business channels and drive future efficiency savings.
The survey also shows that 47% of executives recognize that IT is core to there business. Perhaps at last IT will be seen as a key driver of corporate profitability in the coming years. This is essential in my view if project failure rates are to be reduced to levels more inline with the experiences of the building and engineering industries. However, before this can happen we must see this increase in importance reflected in greater board level presence of CIOs and CTOs with real powers to make IT development and business change work more cohesively. This change is especially important when you take into account the fact that the survey shows that 31% of business executives are focusing IT spend on e business initiatives. All too frequently e business projects fail to deliver expected benefits because business processes are not engineered to meet the needs of the new incoming technology. Let’s hope this is the beginning of a new and exciting long term trend.
This recession has also lead to a greater focus on fundamentals of project management (please see Recessions sometimes have silver linings). Businesses are more concerned about specifications being present before they engage work and that where possible changes are kept to the minimum during the project life cycle. Thirty-two percent of UK executives said metrics have become more important than value with 42% saying they were defining risks of IT projects more clearly before investing and a further 28% said they required higher returns on capital employed before initiating IT Projects.
Eureka!!!! At last we are getting somewhere, only taken 30 + years for this message to get home. This common sense back to basics moves have got to reduce project failure rates.
Take a look at the stats yourself.
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