According to Gartner today - Currently only one-third of IT spending at midsize companies directly improves business performance, while two-thirds is spent on more stealth infrastructure and utility application areas, such as networks, payroll, and security, where the value is not always seen by the BDMs. The problem for IT staff is that business executives often overlook the benefits of these investments, which could lead them to assign lower priorities and budgets to their IT departments, Gartner warned.
The researcher suggested that IT managers channel more funds toward meeting business needs, while at the same time improving their communication with executives about the importance and value of planning for infrastructure improvements.
The recent economic cycle and its focus on return on investment has somewhat tarnished the image of IT. The article recommends that midmarket IT staff get more engaged with the company's overall strategy decisions, to better align technology investments with business priorities and that IT managers look at what other leading companies in their industries are planning in terms of IT and develop a list of best practices.
Gartner predicts that IT spending in the small and midsize business market will increase dramatically in the next few years.
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