Gartner: link IT spend to business wins

Only one-third of IT spending in medium-sized enterprises directly improves business performance, Gartner has claimed

Only one-third of IT spending in medium-sized enterprises directly improves business performance, Gartner has claimed.

The analyst firm is urging medium-sized enterprises to take a more strategic approach to their IT spending to better align it with their business needs.

Almost two-thirds of the IT budget in medium-sized organisations is spent on IT infrastructure, such as networks and servers, and utility applications, such as e-mail and payroll.

Gartner said that although many medium-sized companies spend most of their budget on infrastructure, which is the foundation of all operations, business unit managers often do not recognise or appreciate the value of these investments.

"Many executives in mid-size businesses have become disenchanted with technology that they do not perceive to deliver business value," said James Browning, research vice-president at Gartner.

"This has led to low credibility in many cases, which carries a high price for IT departments, including pressure on budgets and a lack of resources.

"IT organisation's need to achieve a high level of effectiveness at acceptable levels of efficiency and customer satisfaction. This is best accomplished when planning is interactive between IT and the business units."

Read more on IT for small and medium-sized enterprises (SME)

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