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Business-Led IT A Key Driver In Shifting Corporate IT Investments For 2016ARLINGTON, Va., Nov. 10, 2015 /PRNewswire/ -- CEB (NYSE: CEB), a best practice insight and technology company, today released findings from its 2016 IT budget and benchmark survey showing that corporate IT budgets are expected to grow by just two percent in the coming year. IT capex growth is slowing driven in large part by an uptick in business-led IT – information technology spending made by those outside of IT. Increased investments in cloud and a decrease in infrastructure spending contributed to smaller IT capital budgets. The budget outlook for 2016 marks the most modest projected growth since 2012, but for specific categories within IT, the picture is more mixed. Growing concerns around high-profile data hacks mean that security budgets are expected to continue steady upward growth, from 5.2 percent of the budget to 6.2 percent. Meanwhile, IT staff increases are anticipated to be the highest since the recession at 1.9 percent. The increased focus on business-led IT means that CIOs and their teams are operating in a more advisory capacity, as employees outside of corporate IT make more technology decisions and investments than ever before. In 2015, spending patterns among IT functions diverged significantly, with IT organizations that still own delivery of most technology projects growing their budgets by 5.1 percent. IT departments that more frequently serve as advisors – known as Adaptive IT organizations – saw their budgets contract by 2.3 percent. Shrinking IT budgets in Adaptive IT organizations do not represent negative enterprise technology spending, but rather a healthy sign of IT's ability to support technology decision-making in the rest of the business. In fact, Adaptive IT organizations enable the growth of technology spending across the rest of the enterprise. They spend around 30 percent more on analytics, usability, personalization, and collaboration and take a more flexible approach to budgeting, allowing them to re-allocate twice as much of the IT budget as their peers in response to changing business needs. Andrew Horne, IT practice leader at CEB said: "This slowing budget growth represents a tipping point in IT spending as organizations realize the benefits of adopting a more flexible, business-led approach to technology investment. CIOs are rethinking the way budgets are allocated to focus on the speed of response to the rest of the business. In 2016, we expect the IT function to ramp up its role as consultant, broker, and coach to the rest of the enterprise." Other findings from the survey include:
About CEB Logo - http://photos.prnewswire.com/prnh/20131107/PH13083LOGO To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/business-led-it-a-key-driver-in-shifting-corporate-it-investments-for-2016-300176144.html SOURCE CEB |