Three Cost Management Stats IT Leaders Can’t Afford to Ignore
The full report uncovered a range of insights around the state of IT budgets. Here are three key takeaways:
In June 2020, we commissioned a global survey on cost management. After the changes brought on by COVID-19 amid the continuing transformation of IT, we were particularly interested in how IT leaders were managing budgets and adjusting to the impact of the pandemic. The survey polled 1,500+ technology decision makers in ten countries. Respondents included CSOs, CIOs, CTOs and other IT decision makers across the public sector/government, healthcare, media, financial services, manufacturing and retail.
The full report uncovered a range of insights around the state of IT budgets. Here are three key takeaways:
- 50% of respondents don’t know the definition of cost governance. The survey found across-the-board confusion around the definitions of cost optimization and cost governance, which comprise the core elements of cost management. Without clear definition and understanding of how to implement these vital practices, organizations are missing an opportunity to get more out of their IT spend. The data also revealed that IT shares budget decisions with more and more groups inside the company.
- 80% experienced an unexpected increase in spend during Q2. Budgets are growing – but not the way you think. In order to survive the pandemic, organizations poured money into technology to stay afloat. There’s no sign of pulling back that spend anytime soon. Meanwhile, spending on other vital initiatives, like security and digital transformation, were put on the back burner.
- 42% plan to utilize new cloud infrastructure to cut costs. Organizations that were leery of the cloud or slow getting to it are now moving full steam ahead, encouraged by how the cloud performed during the crisis. As these organizations look to recovery, they’re focusing on replacing cumbersome data center resources with cloud-based elements.
Overall, the survey data revealed that cost management is top of mind for IT leaders. Pressured with the demands to modernize and transform, while managing the impact of a global pandemic, IT leaders have had to make hard decisions to keep the lights on. Many of those decisions were made outside of a cost management, optimization and governance framework. As the crisis subsides, leaders will have to reevaluate crisis decisions to determine where to best invest IT dollars to remain competitive and prepare for what’s next.
Download the full report: Technology Budgets – Managing Shifting Priorities for more insights and analysis on the state of cost management to help you budget for the road ahead.
Download the full report
Report: Technology Budgets – Managing Shifting Priorities
About the Authors
Chief Technical Evangelist
Jeff DeVerter
Jeff has 25 years of experience in IT and technology, and has worked at Rackspace Technology for over 10 years. Jeff is a proven strategic leader who has helped companies like American Express, Ralph Lauren, and Thompson Reuters create and execute against multi-year digital transformation strategies. During his time at Rackspace Technology, Jeff has launched and managed many of the products and services that Rackspace Technology offers, as well as supporting merger and acquisition activities to enhance those offerings. Jeff is the father of two young men and husband to his wife Michelle of 27 years. When not at Rackspace Technology or around San Antonio, you can find Jeff doing land restoration on his ranch in the Texas hill country.
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