Businesses want to spend less on IT operations and infrastructure and shift resources to revenue-producing areas, according to two new studies. But businesses leaders and IT executives are also registering higher levels of dissatisfaction with IT as more demands are placed on technology.
The reports, by the Hackett Group and McKinsey & Co., both agree that business executives want IT to do more to improve the bottom line while companies spend less on infrastructure in the process.
The bad news for people who work in IT operations is that large businesses expect to cut IT staff positions by about 2 per cent this year, thanks to automation and outsourcing, according the Hackett’s survey of 160 businesses with revenues above $US1 billion.
One path to improved automation will likely be through adoption of software-defined infrastructures, something Bank of America plans to do.
IT budgets will grow by 1.7 per cent this year as IT pivots, increasingly, from a service-providing operation to a revenue-generating one, the Hackett Group said in its study.