IT managers and the projects they implement get a big thumbs up from CFOs and CEOs in a recent study. IT is considered to have played a crucial role in helping companies get through the recession of 2009, and funding for server consolidation and SOA projects is on the rise.
Seventy-two percent of senior managers place a higher value
on the role of information technology because of the economic crisis, according
to a December Accenture study of more than 550 executives. IT is seen as a
critical component of helping businesses recover from the poor economic
conditions, and managers are looking to invest in technology in 2010 by
spending either on selective projects or across the board. And it's not only
CIOs who are expecting to have technology-spend budgets: 62 percent of non-IT
executives said they will be investing.
"While other operational budgets are being slashed,
global firms look toward IT as a way to rebuild strength," said Keith
Haviland, an Accenture director for systems integration, in a statement. "Far
greater efficiencies and cost savings can be realized through automation across
technologies, faster access to the benefits of emerging technologies such as SAAS
and open source coupled with flexible frameworks of integrated tools and
metrics to track returns on investment."
This is good news for IT managers who have seen staffing and
budgets slashed in 2009, rather than funding for new projects.
Cost-cutting has not disappeared completely; execs have
ranked three areas as being key to keeping costs under control in IT projects:
"Ensuring the stability and business relevance of project requirements;
the replacement or rationalization of existing systems; and movement to open
platforms," said Accenture in a statement.
So what areas of IT will see the most funding? Server
virtualization and consolidation (44 percent) and service-oriented architecture
(31 percent) were two of the top areas Accenture noted. Also labeled was something
called "e-business" (32 percent), but it isn't totally clear whether
that is e-commerce-related or what the underlying technologies are that will
"Just how indispensable IT has become to business
survival and leadership is proven by the anticipated increase in investment
over the next year, despite the challenging economic conditions," said
Haviland in the statement.
In the United States,
87 percent of respondents believe that they are under pressure to deliver
projects that include more flexibility than previously required. More than 75
percent of global companies are using metrics to measure finance, productivity and
progress on IT projects, but only 27 percent are using specific governance
frameworks or specific methodologies (think SCRUM, Agile, etc.). In roughly
half of the cases, however, metrics are partially implemented.
"The results of the survey show that firms recognize
the need to invest in technology to defend and accelerate their competitive
position, even in difficult times, which has not always been the case in the
past," said Haviland. "The turmoil over the last 18 months has
underscored the need for further flexibility and scalability to stay ahead in
business and drive agile business change."