Businesses will need to prepare for IT spending shakeup | ALC Training News

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Technology is fast changing many businesses across the globe, especially as new hardware and services start to proliferate.

Cloud storage services, increasingly capable smartphones and even wearable technologies will contribute to what research organisation Telsyte calls a "new wave of disruption" this year, specifically in Australia.

These new technologies will bring numerous benefits to companies, but they'll change both traditional IT spending and strategies. In fact, Telsyte noted that over half of all chief information officers (CIO) believe IT spending spending fro the business as a whole will outstrip spending within the IT department.

Essentially, this means that other areas of the company will start to govern IT services directly.

A significant changeup

Rodney Gedda, a senior analyst with the firm, noted that in the past areas such as marketing and finance have had a say in what IT services they utilise, but thanks to on-demand procurement it's easier to take out the services directly – without going through IT.

"Today's operations and marketing managers rely on technology to deliver business outcomes and the CIO is no longer the source of all procurement decisions," Mr Gedda said.

A typical example of such a service is cloud computing, where a third party provider manages the services and supports them around the clock. All that's required from the business end is to simply sign up for the required services.

Cloud services are easily put in place.

Cloud services are easily put in place.

The impact on IT

While it may appear beneficial to have the IT demands of various departments alleviated to some extent, Telsyte noted that central IT still controls around 70 per cent of total spending value. What's more, IT budgets are expected to grow even higher this year, which will in turn require a staffing increase to keep up with demand.

Telsyte explained that cloud computing services, mobility and telephony were all key areas of focus for this year – but bigger changes are on the horizon.

Wearable computers and other consumer technologies will start to impact many organisations, given the undeniable benefits of the new devices.

"Like smartphones before them, wearable computers like augmented reality headsets might have business applications and people will find ways to be productive with them at work."

This year will mean big changes for the IT departments in a number of Australian organisations, and preparation will of course be critical to success. Frameworks such as ITIL can play a significant role, giving staff the right education to utilise IT correctly.

An IT spending shakeup is on the way, and prepared businesses stand the best chance of weathering the changes.

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