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The Battle Still Rages Over Who Controls IT Spending

26 Feb, 2014

David Weldon of FieceCIO comments on the important topic of IT and who controls the budget. Read his informative insight as he goes on to say: The battle over the IT budget continues between CIOs and CMOs, with mixed reports recently on who has the upper hand when it comes to new IT spending. Information Management reported this week on a new study from Forrester Research, which says that CIOs still own the IT budget. Meanwhile, UBM is reporting on a new Gartner study that predicts the CMO will outspend the CIO on IT spending within three years.

"Business-only accounts for about 6 percent of U.S. new technology purchases and is rising slowly toward 7 percent, according to the study," Information Management says of the Forrester report. "About 10 percent of new IT purchases in the U.S. start with the business but shift to the CIO."   

According to the Forrester study:
• More than one third of U.S. technology purchases will be made by a combined decision of CIOs and business leaders
• CIO-led purchases that involve business managers will decline from 27 percent in 2010 to 25 percent in 2014
• IT-only purchase decisions will decline from 27 percent in 2010 to 22 percent in 2014.

"The company estimates that just 7.2 percent of total U.S. spending on new technologies in 2015 will be executed by business units without CIO involvement," the article says. "Based on trends, that percentage is not likely to rise dramatically, Forrester says."
Meanwhile, UBM reports that "A recent Gartner study predicts that by 2017, CMOs will spend more on IT than CIOs, while others predict purchasing power will shift to developers."

The statement above is a bit misleading at face value, since both reports are discussing new IT spending, not reoccurring IT spending on systems, operations and payroll, much of which are fixed annual costs that come under the IT budget umbrella.

For more information visit FierceCIO at http://www.fiercecio.com

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