IT spending is all set to be ramped up in the United States to an extent of 19% accompanied by 11% growth in software spending and another 7% hike in communications equipment spending according to a recent Forrester Research press release [1].The same report states that the global IT spending will rise up to 8.1 %.
However, the CFOs, CIOs and CEOs of many companies all over the world want the ROI for their technology investments quicker than yesterday while they also spend thousands of dollars on technology research alone since experts feel that dependable research firms almost act like insurance against wasting resources, according to an article titled “IT Research: Is it Time to Analyze The Analysts?” [2]. Gartner has a full section on its website called “IT Budget Optimization ”[3] –-all set up for justifying costs on technological spend.
The spending is evident along with the risks associated with it. That’s why, it’s important to alleviate that risk and make decisions more confidently. How do you fare as far as IT investments for your business are concerned? Is the huge responsibility of making the right decisions on Information Technology weighing you down? Are you making smart IT investments? Is there a way to fine-tune and analyse IT spending before plunking money on the table?
The answer is a resounding yes!
Starting with the budget constraints of your business, the focus should be on productivity and maximizing return on investments. Answering these questions should help you get a head start on planning your technology investments better:
- What is the technology you are looking at and how does it impact your business? How does it fetch you profits or productivity?
- Where is the technology with regards to maturity? How new (or matured) is the technology? Are there any known issues with the technology you are looking to adopt and use? Will this technology last or is it going to go bust in a few months or years from now?
- What is the extent of financial burden for your business when you are invested in technology (specifically the kind of IT investment you are looking at)? How badly is it going to affect you financially? Is the impact felt short-term or long-term?
- What is the ease of implementing, using and integrating it with your business? Is training users involved? How complicated is the installation?
Take time out to answer these questions. Sit with your IT team, product sourcing team and everyone else involved for laser-focused clarity. It will help your business ignore hype, look at reality as it matters to your business and equips you with solid answers to invest only in technology that is poised to profit from your business.
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References:
[1] Forrester.com: Press Releases
[2]IT Research: Is It Time to Analyze The Analysts?
[3] Gartner, Inc : IT Budget Optimization -- Balancing Cost, Growth and Risk
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