A Penny Saved is a Penny for the IT Budget
A news item popped into my inbox recently (which I subsequently posted here) that piqued my interest. A new report titled “Measuring IT Costs and Value: Maximizing the Effectiveness of IT Investment,” published by the Butler Group, a European IT research and advisory organization, identified that in many organizations just 8 percent of the IT budget is actually spent on initiatives that bring value to the enterprise.
Eight percent? Holy wastefulness, Batman! So, by my math, that means that 92 percent of the IT budget is funding initiatives that get squat for results. The report says that IT management must make a conscious effort to measure and monitor IT investment. Once understood, IT management should then endeavor to increase the proportion of spending on enhancements and new services designed to transform the organization or grow its overall value.
This isn’t just a rant on how mind-blowing it is that this much money is squandered on fruitless trees. A lesson can be learned by this: Just make an effort to keep those pennies where they need to be. An organization has an IT budget for a reason, and the IT staff and managers should divvy it up wisely. As a member of the IT industry, you may not have a finance degree—but take a look at how the department is spending its cash, and ensure it is done responsibly.