How Companies Shortchange IT Innovation

How Companies Shortchange IT Innovation

How Companies Shortchange IT InnovationHow 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 BudgetsGrowing 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-BalanceOff-Balance

On average, 55% of tech budgets support operational and maintenance needs, while just 13% fund innovation.

Formidable ForceFormidable 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 TransformationTop 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 RoadblocksTraditional 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 CommitmentCloud 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 BarriersTop 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-MindedNimble-Minded

44% of the survey respondents said their organization is focusing on and investing in agile processes.

Going OffshoreGoing Offshore

39% said their company is using offshore resources to support or augment IT functions.

Dennis McCafferty
Dennis McCafferty is a contributor to CIO Insight. He covers topics such as IT leadership, IT strategy, collaboration, and IT for businesses.

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