23 Sep IT Spending, Confidence On The Rise
Technology changes at a rapid pace. Everyday we see new operating systems, improved application development platforms, and scalable solutions that allow businesses to make real-time decisions. These changes are often difficult to keep up with, much less understand. As the demand for new and improved technology increases, we’re still looking at a talent gap that allows companies to implement and manage new technology. Despite this, companies are turning to technology to help improve their businesses, as evidenced by larger budgets and increased confidence in their IT departments.
A recent Teksystems survey asked 240 respondents about IT budgeting and confidence levels, among other things, and how this is affecting their day to day activities.
Big IT Budgets
Teksystems initially forecasted that about 45% of survey respondents would report an increase in their IT budgets. When the results came in they were surprised to see that a full 50% reported an IT budget increase, with 35% reporting no changes, and only 15% reporting a decrease.
Part of the reason it has taken many companies a long time to budget more money to IT is a lack of confidence that the money would be well spent and IT would be able to properly satisfy business demand.
Teksystems anticipated about 70% of respondents would report a high confidence level in IT to satisfy business demand, and again the respondents reported a higher number than expected. A whopping 74% of respondents reported a high level of confidence in IT, with 13% reporting indifference, and another 13% reporting little to no confidence.
Where IT Money Is Going
At the outset of 2015 it was expected the top five trends or biggest impacts on IT would be:
- BI/Big Data
- Enterprise Resource Planning
- Cloud Computing
It makes sense that security would be the number one driver for new IT implementations, considering the rise in cyber crimes and cyber security breaches. However, the other technologies were a bit of a crapshoot. When the results of the survey came in, these were the top five:
- Cloud Computing
- BI/Big Data
What Does This Tell Us?
So, what does this data tell us about the current state of IT? Well, it appears that companies are putting more money and confidence in their IT departments to improve business processes and bottom lines. Where technology was often seen as a deterrent in the past, it’s now seen as a catalyst for improvement.
Security is also a big time concern – and for good reason. What is surprising though is the increase in attention on the mobility aspects of business. Smartphones, tablets, and telecommuting are more prevalent now than ever before, thus creating new challenges for IT departments everywhere. The BYOD (Bring Your Own Device) movement is also more prevalent, adding to these mobility challenges. Given this, it makes good sense that mobility would be a major concern.
What may be most surprising, however, is the fact that business intelligence has taken a bit of a dip in importance. This could be true for a number of reasons, perhaps many companies already have these technologies in place, and they’re no longer a main focus – at least not for 2015. It still remains one of the top priorities for businesses and IT though.
Overall, the numbers continue to point in favor of IT, and the increased confidence and budgets shows an effort by businesses to utilize IT as a springboard to bigger and better things. This is good news for tech gurus and business owners alike. IT awareness continues to grow, and that’s a good thing for everyone involved.