Shadow IT spend rising

A new report confirms what many in the IT sector have suspected -- tech spending outside the IT department of Australian companies is increasing.

Although 65 percent of tech spending is controlled by the IT department, this will drop to 55 per cent over the next three years as other lines of business taking over more aspects of IT.

This is according to a study, 'TechInsights Report: The changing role of IT and what to do about it' by Vanson Bourne on behalf of CA Technologies.

Vanson Bourne conducted the survey with 1,300 senior IT executives in 15 countries, including Australia.

It concluded that over the coming years, IT departments must play a more strategic role in corporate decision-making to remain relevant.

Read more:Tech spending to hit $76B

Australian respondents to the survey agreed, with 43 per cent saying that being a strategic business partner will be the main role of IT in three years' time. This compared to 29 per cent believing this is the main of IT today, the research said.

Hope Powers, managing director at CA Technologies, said the consequences of the move from centrally-managed IT has enormous consequences for IT leaders who must now become senior advisors who influence, guide and manage their organisation's tech investments.

Meanwhile, Australian respondents said the IT budget is split down the middle between keeping systems running and creating innovative products and services. But in three years' time, 57 per cent of the budget will be spent on innovation.

38 per cent of respondents also said IT acts as a service brokers or consultant to other parts of the business rather than an exclusive supplier.

Read more:The perils of shadow IT

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Read more:Using shadow IT to your advantage

This story, "Shadow IT spend rising" was originally published by CIO Australia.

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