IT losing budget to other departments: CA

In three years time, IT departments are expected to take on a more consultant focused role and therefore IT spending is expected to shift to other lines of the business, according to CA Technologies.
Written by Aimee Chanthadavong, Contributor on

New research commissioned by CA Technologies has revealed there is an increase in IT spending happening outside of the IT department.

TechInsights Report: The Changing Role of IT and What to Do About It (PDF), conducted by Vanson Bourne, showed that while 65 percent of current IT spend is controlled by the IT department, in three years time it's predicted that other lines of business will take over and only 56 percent of IT spending will be in the hands of IT.

At the moment, a majority of respondents believe IT departments have a technical role within their organisation, including ensuring the organisation's critical data is secure, maintaining the organisation's infrastructure and apps, providing technology support to employees, and fixing problems when they arrive.

However, this is expected to be reversed in three years time. Respondents believe IT departments will take on a more business focused role, such as being responsible for improving customer experience, developing new products and services, as well as becoming a strategic business partner and advising the business.

According to Hope Powers, CA Technologies ANZ senior vice president and managing director, as businesses continue to respond to customer and employee demand — which is a causing a shift in the role of IT — it means IT departments needs to play a more strategic role in corporate decision-making to remain relevant

"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.

"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."

The survey also revealed 39 percent of respondents now see IT as a service broker or consultant to the line of business rather than a sole-source provider of all IT services. Although, at present, 61 percent still believe IT provides all the required apps and services via on-premise or cloud resources.

Cloud computing, mobility, and business analytics are the top three "disruptors" to companies, and respondents believe IT leaders need to better align and educate management in these "disruptive" technologies, according to the study.

For instance, globally 43 percent of survey respondents say that IT needs to be more closely aligned with the business, and 42 percent say that IT needs to strengthen its relationship with executive management. The results are even higher in Australia where 49 percent of Australian respondents say IT needs to provide more training on new technologies, and 47 percent say IT needs to strengthen its relationship with management to secure more support.

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