IT fails to generate revenue

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IT fails to generate revenue

More than half of UK firms’ IT budget is being gobbled up by compliance and other essential work that doesn’t generate revenue.

Some 85% of UK companies plough more than half their IT budgets into non-money-making activities, according to research commissioned by Citrix.

For an unlucky 6% of companies, compliance devours an 80% share of IT budget.

Despite this failure to extract the most from their IT budgets, the majority of the 100 companies polled believe their budget balance is about right.

Richard Jackson, managing director at Citrix, calls for firms to look beyond short-term needs and invest in long-term growth.

“Enterprises are forced to get more and more efficient, so knowing where to spend money and get the return is critical to survival,” says Jackson.

“Pouring good money after bad into projects that don’t create a return is not only asking for trouble, but giving corporate IT a bad name.”

Only 16% of the companies questioned managed to spend more of their budget on revenue-generating projects.

 

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