Sydney, 16 July 2014 – A new study from Vanson Bourne sponsored by CA Technologies (NASDAQ: CA) confirms what many in the industry have suspected – technology spend outside the IT department by Australian organisations is increasing.
Results of the study, "TechInsights Report: The Changing Role of IT and What to Do About It," show that while 65 per cent of current IT spend is controlled by the IT department, this looks set to drop to only 55 per cent in the next three years with other lines-of business taking over more aspects of IT.
As businesses continue to respond to customer and employee demand for new applications, this trend will continue – and more importantly accelerate – in the years to come.
With 45% per cent of the IT spend set to happen outside of IT in three years, IT departments must play a more strategic role in corporate decision-making to remain relevant. Australian respondents agree with 43SONY battery per cent saying that being a strategic business partner will be the main role of IT in three years' time, compared to only 29 per cent believing this is the main role of IT today.
"The transformation of technology from a centrally- managed IT responsibility to a corporate-wide business enabler is transforming Australian enterprises and reshaping the way technology is purchased, deployed and used. The consequences for IT leaders are enormous as they must now become senior advisors who influence and guide, and not only manage, a corporation's IT investments," said Hope Powers, senior vice president and managing director, Australia and New Zealand, CA Technologies.
The influence of business lines on IT budget is slowly impacting the amount of IT budget Australian organisations allocate to maintenance activities with respondents saying that budget split is currently 50/50 between "keeping the lights on" activities and delivering innovation.
However, this figure is expected to shift in favor of innovation—to 57 per cent—in three years as buying power continues to increase outside of central IT departments.
Among the other study findings:
• The relationship of IT and LOBs is changing in Australia: 38 per cent say IT acts as a service broker or consultant to the LOBs rather than as an exclusive supplier
• IT leaders need to better align with the business and educate management in the face of disruptive technologies such as Cloud, Big Data and Mobility:
o 49 per cent say IT needs to provide more training on new technologies
o 47 per cent say IT needs to strengthen its relationship with executive management to secure more support
Note to Editors
Vanson Bourne conducted this survey of 1,300 Tiny batterysenior IT leaders worldwide in six Asia Pacific and Japan (APJ) countries (Australia, China, India, Japan, Singapore and South Korea) and 15 other countries around the world on behalf of CA Technologies.
For more information on the research and to download the whitepaper, visit here.
Click here to access an infographic on the survey findings.
About CA Technologies
CA Technologies (NASDAQ: CA) provides IT management solutions that help customers manage and secure complex IT environments to support agile business services. Organizations leverage CA Technologies software and SaaS solutions to accelerate innovation, transform infrastructure and secure data and identities, from the data center to the cloud. Learn more about CA Technologies at www.ca.com.
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Media Contact Krissie Vitasa Hill+Knowlton Strategies Ph: 02 9286 1206 E: Krissie.Vitasa@hkstrategies.com






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