Technology

Tech spend increases by an average of 43% for IT decision makers

85% of IT decision makers have experienced an increase in their technology spend, but only a third report tangible value from the new investment. As a result, 62% are experiencing “technology drift” — a widening gap between what the company is trying to do and what it actually achieves — due to rising costs.

43% increase in IT spending

Technology spending for IT decision makers has increased by an average of 43% since the pandemic began, with 62% also experiencing technology drift in their organization. This is acc Orbus softwarea leading provider of cloud solutions for digital transformation, which surveyed IT decision makers in the US and UK to determine the heightened financial demands of the pandemic.

technology drift

The most common reasons for increased spending have been identified as the introduction of new technologies to support work from home and Hybrid work (71%), rising technology costs (69%) and the introduction of new IT regulations (56%).

However, when it comes to onboarding new technology, only 30% say all new onboarding technology has delivered tangible value, with 51% saying “most” have. A majority (79%) say all or most technology purchases were planned in the last 24 months in advance, compared to 13% who say they were made at the last minute. The study found that the UK is more prone to last minute investments than the US (17% vs. 9%).

Michael D’Onofrio, CEO at Orbus software, commented: “There has undoubtedly been an increase in the importance of technology over the last two years, but this technology drift – where there is a growing gap between what companies are trying to do and what they are actually achieving – is causing significant problems. Despite rising spending, not even a third of companies can say they have delivered tangible value.”

enterprise architecture tool

To address these challenges and plan for future technology and software purchases, 80% of respondents say their organization either has (34%) or plans to (46%) integrate an enterprise architecture tool. The in-depth survey found that nearly half (47%) adopted enterprise architecture due to rising technology costs and 46% wanted to narrow the gap between IT and business stakeholders. Additionally, 41% are adopting enterprise architecture to simplify increasing complexity and 39% say they need more visibility before moving to the cloud.

“We are currently in a period of significant friction, and organizations often need to pivot. For this reason, companies need reliable core services that offer them transparency, reliability and agility,” continues D’Onofrio. “Having a tool that gives organizations that visibility and insight is critical. Without enterprise architecture, the challenges facing IT teams will continue to spiral out of control.”

The survey also revealed the IT roadmaps in the UK and US. It turns out that 95% have a technology roadmap to make informed technology purchases. Most often they plan for the next 6 (26%) or 12 months (37%). However, 14% have an 18-month roadmap and 19% have one for 2 years or even longer.

https://techround.co.uk/news/tech-spend-increases-on-average-43-for-it-decision-makers/?utm_source=rss&utm_medium=rss&utm_campaign=tech-spend-increases-on-average-43-for-it-decision-makers Tech spend increases by an average of 43% for IT decision makers

Fry Electronics Team

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