How Companies Shortchange IT Innovation
How Companies Shortchange IT Innovation
Companies are still allocating a much greater share of the IT budget to routine operational and maintenance needs rather than to innovation-driven initiatives.
Growing Budgets
40% of the CIOs and other business-focused tech leaders surveyed said their organization’s overall IT budget has increased by 10% or more over last year’s.
Off-Balance
On average, 55% of tech budgets support operational and maintenance needs, while just 13% fund innovation.
Formidable Force
54% of the survey respondents said their organization is undergoing a major IT transformation, and 31% said their company is experiencing a high level of disruption due to this transformation.
Top Drivers of Digital Transformation
New functionalities: 53%, Cost optimizations: 43%, Operational improvement: 41%, Adoption of emerging tech: 40%, Alignment of business and IT: 38%
Traditional Roadblocks
43% of the respondents said legacy infrastructure presents a major hindrance to IT transformation efforts, and 39% cited a tech culture that is not agile when it involves change.
Cloud Commitment
64% said their organization is focusing on and investing in the cloud, and 46% said that at least 20% of their apps, infrastructure and platforms are now run in the cloud.
Top Cloud Barriers
Security and privacy risks: 48%, Costs: 48%, Time required: 38%, Potential disruptions to other priorities: 38%, Regulation and compliance: 25%, Implementation risks: 24%
Nimble-Minded
44% of the survey respondents said their organization is focusing on and investing in agile processes.
Going Offshore
39% said their company is using offshore resources to support or augment IT functions.