Home / Businesses pour money down the IT drain

Businesses pour money down the IT drain

Businesses are wasting $500 billion on Information Communication Technology (ICT) according to Gartner Group.

Businesses are wasting $500 billion on Information Communication Technology (ICT) according to Gartner Group. Over $2.7 trillion was spent on ICT last year with the analyst house estimating that 20% of this was spent on projects that failed to meet their specified targets.

Gartner identified a number of key areas where misspending occurred. Of particular note was “over specified” hardware and network infrastructure, which was too advanced for a company’s needs. Unnecessary customisation of software packages and poor central control of software licensing also added to costs, as did projects that simply never reached fruition.

The analyst house believes that these failings have resulted in IT directors and business manager losing confidence in their ability to select and implement projects that will deliver business benefits.

To redress this problem, Gartner argues that companies need to “kill projects early and often.” This, however, will require a change in management culture so that managers feel they will be rewarded for recognising projects that are destined to fail. Companies also need to adjust their IT investment behaviour by addressing inappropriate procedures and prioritising ICT investment to meet current business goals.

Andy Kyte, Gartner research vice president, suggests these changes will also affect IT vendors. “Economic recovery can not be guaranteed to re-ignite IT spending because companies will get smarter with their investments in the future. As a consequence, IT vendors will see margins squeezed as IT buyers get better at rightsizing their purchasing decisions,” he says.

Follow us to get the most comprehensive technology news in UAE delivered fresh from our social media accounts on Facebook, Twitter, Youtube, and listen to our Weekly Podcast. Click here to sign up for our weekly newsletter on curated technology news in the Middle East and Worldwide.

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.

CHANNEL AWARD 2018