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Hey, bit spender

IT budgets set to increase in 2015

Coman Hamilton
Piggy bank image via Shutterstock

As IT spending reaches a five-year high, enterprises are allocating more funds towards innovation and cloud development.

IT spending is growing at the fastest rate in five years, with the average IT budget planned to increase 3.3% in 2015. Meanwhile the portion of spending on tech innovation continues to rise, as maintenance costs fall. With the help of CEB’s study of 200 global organizations (wielding a total budget of £46 billion / $72 million), let’s take a closer look at the current numbers in IT spending.

One in six IT organizations dedicate more than 40% of their budget to fund new capabilities. (©CEB 2014)

One in six IT organizations dedicate more than
40% of their budget to fund new capabilities. (© CEB 2014))

Good news for IT jobseekers

Overall IT recruitment is predicted to increase by 4% by the end of next year, with UX designers standing to benefit most next year. Following a bump from 15% to 17% in spending on the customer interface, there’s a good chance that UX design will soon establish itself as a mainstream component of the IT team.

This year’s analysis shows that IT is becoming increasingly agile in its spending. With business demands and technologies changing rapidly, IT departments must constantly be in a position to (re)allocate new funds on short notice.

This also means that developer teams are faced with drastically shorted project development times. “In the past you would see companies making plans 3 or 4 years out. This year the road maps stop after 18 months,” says CEB’s managing director Andrew Horn.

Cloud soon to be part of all IT budgets

Cloud investments (© CEB 2014)

Cloud investments (© CEB 2014)

Currently, 91% of CIOs allocate some portion of their IT budget to the cloud, while one in three companies are spending at least 6% on cloud deployment (10% more than last year).

45% of all enterprises are already deploying all three forms cloud service (PaaS, IaaS and SaaS).

In contrast, the mobile budget is slowing. Although investment in mobile development has not plateaued, few companies are investing more than 6% of their total budget in this area. And yet while most enterprises have developed mobile apps of some sort, most of this investment would appear to be still in the experimental stage.

HR, marketing, operations and finance continue to be the biggest spenders in IT when it comes to pioneering new technology for achieving non-IT goals. The above departments spend between 3.5% and 4.5% of their budget on IT work, which means that spending on IT innovation could be far higher that 33%, as CEB estimates.

Author
Coman Hamilton
Coman was Editor of JAXenter.com at S&S Media Group. He has a master's degree in cultural studies and has written and edited content for numerous news, tech and culture websites and magazines, as well as several ad agencies.

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