CIOs still in control of most IT spending, Forrester says

While business units are slowly gaining more influence in IT purchasing, CIOs should embrace this, according to the analyst firm

CIOs still have the last word over most IT spending but over time they will work more closely with business units on buying decisions, a Forrester Research survey finds.

Only 6.3 percent of new technology purchases in the U.S. were made and implemented solely by business units in 2013, according to the report's author, Forrester vice president and principal analyst Andrew Bartels. Some 9 percent of spending involved technology the business unit chose but the CIO's team implemented and managed.

However, "the ideal tech-buying process is one in which the business and the CIO's team work together to identify a need, find and fund a solution, choose the right vendor or vendors, implement it, and manage it," Bartels wrote in the report. "We estimate that more than a third of tech purchases will fit that profile by 2015."

Moreover, the share of tech purchases the CIO's group "primarily or exclusively makes" will drop from 55 percent to 47 percent by 2015, Bartels added.

Still, "pundits who make sweeping statements about tech spending shifting from the CIO's department to the business fail to appreciate the complex process involved in buying and owning technology," he wrote.

Business units' share of new technology spending went up from 2010 to 2012, fueled by purchases of smartphones and tablets, but this trend will wane as such items become part of consolidated IT budgets, according to Bartels.

Meanwhile, business unit purchasing of SaaS (software as a service) and IaaS (infrastructure as a service) is growing, "though the actual volume of spending is relatively small because many of these purchases have first-year costs measured in the tens of thousands of dollars," he added.

Although control over tech spending is shifting slightly away from CIOs, they shouldn't be alarmed, according to Bartels: "The fact that business users are taking the lead in identifying opportunities to apply technology solutions to business problems is a good thing, not something to be deplored."

But CIOs should make sure their relationships with various business executives are strong, so they will come to the CIO's office for help, he added.

While the report focused on the U.S., the same trends are likely to be found worldwide, particularly in countries such as the U.K. which have similar technology adoption profiles, Bartels said in an interview on Monday.

But many other countries aren't as advanced in their usage "and still tend to view technology through the lens of the IT department," he added. In those nations, the amount of tech spending led by business users is probably lower than in the U.S., according to Bartels.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

Join the PC World newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags serviceshardware systemsCIO rolesoftwareIT managementForrester Researchinternet

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?