Line of business drives 61 percent of enterprise IT projects, says IDC

Line of business drives 61 percent of enterprise IT projects, says IDC

Summary: Technology projects are increasingly being funded by line of business groups as the IT department is relegated to a partnership role.



roadrunner wile e
What does the Roadrunner and CMOs have in common? Both are chased incessantly. One by Wile E Coyote. The other by tech vendors. Credit: Warner Bros., Boomerang.

Sixty-one percent of enterprise technology projects are now funded by business instead of the information technology department, according to a survey by IDC.

The survey, based on 1,200 line of business executives, found that CIOs are no longer driving investments. Line of business spending will outpace IT spend for the foreseeable future.

Among line of business executives, marketing is driving the most IT spend with a 5-year compound annual growth rate of more than 9 percent.

Given IDC's finding it's no wonder tech vendors are chasing chief marketing officers around like:

  • lovesick teenagers thinking they've found their IT spending soulmates.
  • the paparazzi chases pictures of Beyonce's baby.
  • Wile E Coyote chases the Roadrunner (above).
  • (insert your choice here) runs after (insert name here).

IDC argued that cloud computing and agility are driving projects to line of business executives. Line of business units should be viewed as extensions of the IT department since those groups have 8 percent technical personnel.

On the bright side, 85 percent of IDC's respondents said that the IT department is a more valuable partner relative to three years ago.

Topic: CXO

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  • That was the old model...

    ...when IT didn't exist and Computer Services came to your desk and helped you. The computer guys were "hired out" to the various tasks to do a particular project. There was only a tiny group that did the wiring and backups, but it wasn't in charge of anything. Of course, this was back in the days when productivity was going up through the roof, ahh the heady days before IT squelched all that!
    Tony Burzio
    • Just what I was thinking

      that was hpw I remember it working.

      In fact, most companies I deal with don't even have a CIO.