I had an opportunity to talk with an IT industry icon about their upcoming series on achieving client success in 2024 and beyond.
While confirming what I have been saying about the commoditization of technology – including provider solutions in the procurement industry, I must admit I was floored by several revelations. One of them was finding out what the three lowest priorities are on most IT budgets.
Can you guess what they are?
Before I share the bottom three, I am going to ask you what you think would be the top three (queue Jeopardy music).
A Procurement Perspective
In the procurement world, what are the most discussed topics when it comes to technology?
Correct me if I am wrong, but I am hearing a great deal about data – and more specifically, clean data.
I am also hearing some rumblings about Artificial Intelligence (AI)
These seem to be the two technology headline topics we are seeing on almost a daily basis.
One Final Question
When it comes to IT spend, who is the primary holder of the budget? Is it Finance or IT? Maybe the Procurement Department?
“The IT budget is typically overseen by the chief information officer (CIO), the IT organization’s top executive. However, as IT has become central to business results, the scope and allocation of an IT budget has become more complex, because not all IT spending falls within the IT department.” – Mary K. Pratt (Tech Target)
The Bottom Three IT Budget Priorities
Cloud Services – Allocation for cloud services and platforms
Data Services – Data analytics, Business insights, Monetizing data to enhance metrics, improve customer experiences, support the overall business
Artificial Intelligence (AI) – Deploy AI machine learning, Automating business processes, Improve data analysis to gain better insights, Expand stakeholder engagement and impact performance
As someone who has been in high-tech and procurement as long as I have, I thought I would take some time to check other sources regarding what are the most common IT budget priorities.
Here are a couple of examples (and corresponding sources):
Some of the items that are included in an IT budget are hardware, software, personnel, outsourcing, disaster recovery, and any occupancy costs associated with the support of the IT in the organization. Taxes, except value-added taxes, are also included.
The IT budget is the enterprise’s total allocation of IT spending over a 12-month period. IT spending/budget can come from anywhere in the enterprise that incurs IT costs, and it is not limited to the IT organization. It includes estimates by enterprises on decentralized IT spending and/or shadow IT. The IT budget covers hardware, software, personnel, outsourcing, disaster recovery and occupancy costs associated with supporting IT within the enterprise. Costs also include all taxes (except value-added tax where it is recovered or refunded to the organization).
Procurement Insights
What are the bottom 3 priorities on most IT budgets?
Posted on March 2, 2024
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I had an opportunity to talk with an IT industry icon about their upcoming series on achieving client success in 2024 and beyond.
While confirming what I have been saying about the commoditization of technology – including provider solutions in the procurement industry, I must admit I was floored by several revelations. One of them was finding out what the three lowest priorities are on most IT budgets.
Can you guess what they are?
Before I share the bottom three, I am going to ask you what you think would be the top three (queue Jeopardy music).
A Procurement Perspective
In the procurement world, what are the most discussed topics when it comes to technology?
Correct me if I am wrong, but I am hearing a great deal about data – and more specifically, clean data.
I am also hearing some rumblings about Artificial Intelligence (AI)
These seem to be the two technology headline topics we are seeing on almost a daily basis.
One Final Question
When it comes to IT spend, who is the primary holder of the budget? Is it Finance or IT? Maybe the Procurement Department?
“The IT budget is typically overseen by the chief information officer (CIO), the IT organization’s top executive. However, as IT has become central to business results, the scope and allocation of an IT budget has become more complex, because not all IT spending falls within the IT department.” – Mary K. Pratt (Tech Target)
The Bottom Three IT Budget Priorities
As someone who has been in high-tech and procurement as long as I have, I thought I would take some time to check other sources regarding what are the most common IT budget priorities.
Here are a couple of examples (and corresponding sources):
Some of the items that are included in an IT budget are hardware, software, personnel, outsourcing, disaster recovery, and any occupancy costs associated with the support of the IT in the organization. Taxes, except value-added taxes, are also included.
(Source: Project Manager, Nov 30, 2023)
Staff & Compensation
Hardware
Software
(Source: Gordon Flesch Company, Feb 2023)
The IT budget is the enterprise’s total allocation of IT spending over a 12-month period. IT spending/budget can come from anywhere in the enterprise that incurs IT costs, and it is not limited to the IT organization. It includes estimates by enterprises on decentralized IT spending and/or shadow IT. The IT budget covers hardware, software, personnel, outsourcing, disaster recovery and occupancy costs associated with supporting IT within the enterprise. Costs also include all taxes (except value-added tax where it is recovered or refunded to the organization).
(Source: Gartner)
I am definitely looking forward to my IT friend’s article series.
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