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Does the CIO Control IT Spending?

by Chris Curran on January 29, 2010 [email] [twitter]

At Diamond, we are in the early stages of analyzing survey data from our 2010 Diamond Digital IQ study, a multi-industry study of the strategic use of IT.  The respondents are equally distributed between business and IT leaders. For more details on what to expect, have a look at the DDIQ results from the last two years and a summary published by CIO Insight.

To whet your appetites, I wanted to share one of the questions and its results.  In the complex, global and distributed business world in which we live, we wanted to know as a percentage, how much of an enterprise’s total IT spend resided in the CIO’s budget.  For the purposes of this question, I only included the results from the IT leaders with the thought that it would be the most accurate.  Here are the results:

Forty-one percent of those surveyed said that 30% or more of their companies’ IT spend lived elsewhere.  Only 37% said that they controlled between 90-100%.  This is certainly a complex question to analyze and understand given the complex business structures, sourcing approaches and IT service models.  I wonder if there are other indications here of an emerging trend to distribute more IT capability?

Stay tuned for an early view of other results and the complete analysis.

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  • Steve Romero, IT Governance Ev

    I would REALLY like the deep-dive analysis on this data. I was very encouraged by how much IT-spend is outside of the CIOs budget. Then I read your last statement, “I wonder if there are other indications here of an emerging trend to distribute more IT capability?”

    I didn’t view the spend outside of the CIOs budget as an indication to distribute more IT capability. I surmised (and I admit I could be way off) that the spend outside of the IT budget was an indication that IT spend was coming out of business-unit budgets – representing business ownership for technology spend decisions. I did not assume this ownership meant the technology capability was provided outside of IT – just outside of the IT budget.

    I have always had a problem with “IT Budgets” because they foster the potential disconnect between technology investment and business value.

    Steve Romero, IT Governance Evangelist
    http://community.ca.com/blogs/theitgovernanceevangelist/

  • Steve Romero, IT Governance Evangelist

    I would REALLY like the deep-dive analysis on this data. I was very encouraged by how much IT-spend is outside of the CIOs budget. Then I read your last statement, “I wonder if there are other indications here of an emerging trend to distribute more IT capability?”

    I didn’t view the spend outside of the CIOs budget as an indication to distribute more IT capability. I surmised (and I admit I could be way off) that the spend outside of the IT budget was an indication that IT spend was coming out of business-unit budgets – representing business ownership for technology spend decisions. I did not assume this ownership meant the technology capability was provided outside of IT – just outside of the IT budget.

    I have always had a problem with “IT Budgets” because they foster the potential disconnect between technology investment and business value.

    Steve Romero, IT Governance Evangelist
    http://community.ca.com/blogs/theitgovernanceevangelist/

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