Business Leaders Spending On Technology Because It’s Too Important To Let I.T. Go It Alone

In Forrester’s latest report, “Tracking The Renegade Technology Buyer,” we uncover the motivations and technology spending priorities of over 1,000 North American and European business executives. The data from the Forrsights Business Decision-Makers Survey was collected in Q4, 2012.  Of the 891 respondents that had a budget over US$1 million, 824 spent their own money on hardware, software, telecom or services. Twenty-four percent of the 891 spent over 21% of their budget on technology, accounting for over $US 31 billion in expenditures. Senior management and sales and marketing were the top spending business functions and financial services/insurance and telecom/utilities lead the pack from a vertical perspective.

So why are business leaders carving out part of their own budgets for technology? It’s contrary to what you think. The high business spenders are not doing it because it is faster or cheaper than central IT – they are doing it because they see technology as too important to their success not to be involved. In parallel, senior management is more relaxed in dealing with the technology – 33% of the high spenders say there technology IQ has increased and they are more comfortable working with IT. Another 20% say that their use of consumer technology has changed their expectations of how technology should be used. The consumerization of IT is not just about younger Gen Y staff wanting to bring their own Macs and iPhones to the office; just as or more importantly, it’s also changing the way senior managers drive business and technology strategy.

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People In IT Love Stats But They Probably Won’t Love These

I’ve written a number of blogs about IT service management (ITSM) and IT service delivery many of which have expressed opinions based on observations and conversations rather than “facts.” A new Forrester report by my colleague Eveline Oehrlich has some facts to substantiate what we already knew even if we chose to ignore it.

These facts reinforce a figure that I use in most presentation to show that without exception IT professionals think that they do a better job than their business colleagues think they do. So we have this perceptions gap or perhaps we should call it a “perceptions gulf.”

The IT perceptions gulf

This is one of those pictures that really is worth a thousand words. In fact all three of these figures make it easy for me to cut short the commentary.

It’s interesting to see the geographical differences but, despite these, we still see a consistent gap or gulf between “How IT thinks it is doing” and “How customers think IT is doing.” Funny how our metrics aren’t a sea of red – in fact our metrics dashboard is often a sea of green.

“But that’s just perceptions” I hear you cry, “We still do a fantastic job in enabling business activities with cutting-edge IT.” But could we do better? Please read on …

Could we improve business productivity?

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