This Is Why Your IT Budget Is Shrinking

This Is Why Your IT Budget Is Shrinking
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Alright, we know — your IT budget is shrinking because corporations are staffed by soul-sucking monsters that value dollar signs above absolutely everything else, sanity included. But another key factor is that money that was once assigned to centralised IT is now often ending up in individual departments instead.

Pie picture from Shutterstock

New data from Telsyte’s Australian Digital Workplace Study for 2015 suggests that 22 per cent of all IT spending by Australian businesses is made outside the IT department. If you have a corporate credit card, it’s not hard to have a couple of hundred dollars of expenses for software-as-a-service signed off without ever going through a formal IT process. “Today’s operations and marketing managers rely on technology to deliver business outcomes and the CIO is no longer the source of all procurement decisions,” Telsyte analyst Rodney Gedda said in a statement announcing the report’s release.

There’s a benefit to this approach (faster procurement) but also a significant risk (lack of integration with other business processes, ignorance of security issues). One way of reducing that risk is to assign departments their own individual budgets, something which now apparently happens to some extent in 79 per cent of Australian organisations, Telsyte found.

One more cheering piece of news? More than half the CIOs surveyed expect to hire more people this year. Time to work out your salary expectations.


  • People go and buy all this shit then ask us to come and set it up. Sometimes it’s “sorry, this isn’t compatible with our systems, goodbye”.

  • I remember when the IT budget problem was software licensing and annual support/update subscriptions, and hardware/warranty costs.

    $100K in year 1 was $80K software licensing and $20K support/updates.
    Yr 2 required $20K from yr 1 again, so there was only $80K left if the budget wasn’t increased.
    After 4 or 5 years there was no more budget for software licensing, certainly not $80K.
    Same for hardware, warranty and expansion/upgrades.

    Thanks be to St Expeditus for (insert first initial of any source of IT expenditure)AAS and the departmentalization of spend through corporate cost center structuring.

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