Compiled By Traci Purdum According to the recent Forrester Research Inc. report, "How Companies Govern Their IT Spending: Business Technographics Data Overview," IT executives have become more serious about how their companies prioritize, fund, purchase and deploy IT products and services within their organizations. Indeed, only 5% of overall IT spend is still available for new technology investments this year. Additionally, the study found that mid-2003 IT spending budgets are weaker and below planned budget levels. As a result, Forrester revised its growth forecast on IT spending from 1.9% to 1.3%. Other key findings of the report, which queried 704 executives and directors of North American companies with at least $500 million in revenues, include:
- On average, firms spend 21% of their overall IT budget on new investments, 75% of which is already earmarked for an existing or planned project.
- 30% of companies must get executive approval on any new investment, regardless of the dollar amount.
- ROI calculations are required on 90% of all investments.