Technology Strategy Not Just an IT Responsibility, Global Study Reveals
March 11 2014 - 9:00AM
Business Wire
Companies See Technology as Enabler of
Business; Lines of Business Driving More Than One Third of All IT
Spend, and Rising
A new CA Technologies (NASDAQ:CA) study confirms what many in
the industry have suspected: technology spend outside of the IT
department is growing rapidly. As software-driven business
transformation becomes the norm and businesses use new applications
to engage their employees and customers, this trend is expected to
continue, and accelerate, in the years to come.
According to the study, “TechInsights Report: The Changing Role
of IT and What to Do About It,” the transformation of technology
from a centrally managed IT responsibility to corporate-wide
business enabler is upending the enterprise and reshaping the way
technology is purchased, deployed and used. 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.
CA Technologies Chief Technology Officer John Michelsen
commented on the study, “Software and technology are disrupting
business models, creating new businesses from the ground up and
even transforming entire industries. Customers are demanding new
applications and a different experience, and employees require new
tools to succeed and be productive. As a result, we are seeing a
seismic shift in the way technology is seen, purchased, used and
deployed across the enterprise. IT departments must evolve from
single-source providers to business consultants, brokers and
advisors, or risk becoming marginalized in the software and
technology-driven economy.”
Over one third (35 percent) of IT spend is now happening outside
of the IT department, according to the 1,300 IT leaders from 21
countries who were surveyed. Respondents expect this trend to
continue with lines of business responsible for 44 percent of IT
spending within three years.
According to the study, activities such as driving new business
initiatives (14 percent) or developing new, innovative
products/services (11 percent) are not top of mind with most IT
departments. Instead, traditional IT duties top the
list—maintaining infrastructure and applications (41 percent) and
fixing problems as they arise (35 percent).
Further, IT leaders are not doing enough to leverage technology
to measure IT’s impact on the business and to help the lines of
business understand IT’s value. Few frequently share key
performance metrics (31 percent), evaluate the impact of shifts in
investments (27 percent), or evaluate whether IT is meeting its
KPIs (37 percent).
The influence of business lines on IT budget has reversed the
historical mix that showed as much as 80 percent of IT budgets
typically allocated to maintenance activities. Today, the total
enterprise spend on IT across all functions and units has moved
from maintenance or “keeping the lights on” activities to a heavier
concentration on new services development and deployment.
Respondents report a nearly even split today and expect the balance
to shift in favor of innovation—to 59 percent—in three years as
buying power continues to increase outside of central IT
departments.
Survey Methodology
Vanson Bourne conducted the CA Technologies-sponsored study of
1300 senior IT leaders in financial services, healthcare,
manufacturing, public sector and telecommunications in 21 countries
around the world in May through July 2013. The study’s respondents
assume IT executive, management, project lead or enterprise
architect positions at enterprises with revenues of $100 million or
more. For more information on the research and to download the
whitepaper, visit here.
About CA Technologies
CA Technologies (NASDAQ:CA) provides IT management solutions
that help customers manage and secure complex IT environments to
support agile business services. Organizations leverage CA
Technologies software and SaaS solutions to accelerate innovation,
transform infrastructure and secure data and identities, from the
data center to the cloud. Learn more about CA Technologies at
www.ca.com.
Follow CA Technologies
- Twitter
- Social Media Page
- Press Releases
Legal Notices
Copyright © 2014 CA. All Rights Reserved. One CA Plaza,
Islandia, N.Y. 11749. All other trademarks, trade names, service
marks, and logos referenced herein belong to their respective
companies.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20140311005163/en/
CA TechnologiesChristine Needles404-848-2007
(office)404-272-8875 (mobile)Christine.Needles@ca.com
Xtrackers California Mun... (NASDAQ:CA)
Historical Stock Chart
From Sep 2024 to Oct 2024
Xtrackers California Mun... (NASDAQ:CA)
Historical Stock Chart
From Oct 2023 to Oct 2024