Justifying IT spending still
a challenge, says IT execs
Dec. 22, 2003
By Erwin Lemuel G. Oliva
http://www.inq7.net/inf/2003/dec/23/inf_1-1.htm

NEXT year, most Philippine information technology managers ranked
"justifying technology spending" as their foremost concern, a local survey
showed.

While they readily acknowledged that IT security was also important, the
respondents believed that it would be a challenge in 2004 to push
information technology projects that would involve some investment from
their organizations.


They particularly underscored software development as a "major challenge."

The survey was conducted from March to December 2003 by the newly
organized group called Society of IT Management Professionals (SITMP).
The SITMP is composed mostly of IT professionals managing the IT
requirements of organizations

The survey involved more than 30 IT managers representing local
organizations in the Philippines, according to Robert Gantuangco, president
of SITMP and chief technology officer of INQ7.net

"IT security is everyone's concern (79.5%) but the top challenges were
software development and justifying IT investment," he stressed.

Other concerns cited were business re-engineering, change management,
e-business, wireless, the lack of funds, project management and
implementation, and their data centers.

Similarly, technology analyst Gartner said that cutting the IT budget is the
wrong tactic for 2004.

Based on its "Must Do" for chief information officers and IT directors next
year, the analyst indicated that most enterprises expect modest
spending on IT next year due to the previous conditions.

Gartner advised that IT managers should focus on three strategies next
year.

First, they should maintain their cost discipline, rationalize, and consolidate
further. This means that they should start upgrading hardware bought
before 2000 and ageing software, and yet continue consolidating IT
infrastructure and applications, then plan for new competences and give
most valuable staff an unexpected pay raise.

Next, IT managers should assess imminent trend shifts in business and
technology, and should prepare to respond. They should make clear
technology choices and set policy for the future, stay in direct touch with
key technology developments, and anticipate external drivers of
uncertainty and complexity.

Finally, they should and must invest in mid-term opportunities, but pull
back from short-term expedients. This means that they should move
towards "real time" infrastructure, create a business process skills
competency center, build partnership management competences and
processes, and plan to overspend on budget.

"IT still has the ability to help drive strategic business growth. IT
departments in 2004 should be straining at the financial leash, make sure
they don't under-spend their budget and lobby for more resources to make
bigger contributions to the business," Gartner said.
2004 Society of IT Management Professionals (SITMP)


Society of IT Management Professionals
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