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Posted by Michael Barnes on August 5, 2013
In Q4 2012, Forrester interviewed over 2,800 senior IT and business decision-makers across Asia Pacific, including 250 senior IT decision-makers with budgetary authority in Australia and New Zealand (A/NZ). Respondents included a mix of small and medium-sized businesses (SMBs) and large organizations, with all major vertical market segments represented. On average, 6% of A/NZ respondents’ total budget is currently spent on IT (including both operating and capital budgets). Of that total IT budget, an average of 26% is targeted at new initiatives, versus 52% targeting ongoing operations and maintenance and 22% targeting capacity replacement & expansion.
While these findings are interesting, the expected spending on IT staff salaries is what really stands out. Our Forrsights data shows spending on IT salaries in A/NZ rising far faster than all other IT-related line items (see Figure 1). This is not an anomaly. In fact, it’s a sign of things to come.
There are several likely reasons for this dynamic:
Just like their counterparts in North America and Western Europe, IT organizations in Australia and New Zealand are facing strong business pressure to improve operational efficiency and increase responsiveness to business demands. In many instances, this pressure is matched only by the demand to reduce spending across software, hardware and services. To address this challenge, Forrester expects spending on IT staff salaries to continue to rise, particularly as the skills in demand increasingly come at a premium.
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