2014 IT Budget Outlook Research Findings © 2014 Property of UBM Tech; All Rights Reserved Executive Summary All 289 respondents to our 2014 IT Budget Survey are involved in approving, defining, managing, or providing input into their organizations’ IT budgets. While the percentage reporting business units with tech budgets outside IT’s purview is down seven points from last year, and overall tech spending edged up slightly, challenges remain. >> 54% say contractors comprise less than 10% of their IT staffs; 30% have no non-W2 workers. >> 39% outsource less than 20% of such ops as application development or help desk, the same as last year. The use of outsourced operations is holding steady. >> 32% say 10% or more of the total organizational operating budget is spent on IT, up from 30% last year. Top business unit expenditures: commodity gear like printers, at 44%, and cloud, at 39% — that’s up from 28% last year. >> 28% will see IT budget increases of 5% or more for 2014; 33% will stay flat. >> 25% say IT gets involved in outside technology spending only when invited to do so by business units. >> 58% will charge back to business units 40% or more of the IT budget; 20% have chargeback rates of 80% or more. And 32% say immediate chargebacks make business units somewhat or far more likely to use IT services. In this report, we discuss how to cope with changes in the budgeting landscape and partner more effectively with business units. Respondent breakdown: All respondents are from organizations with 50 or more employees; 30% have 5,000 or more employees; 22% are over 10,000. Financial services, healthcare, and government are well-represented, and 58% are IT director/manager or IT executive management (C-level/VP) level. Want more? Visit InformationWeek Reports v Service-based Budgeting Up Slightly © 2014 Property of UBM Tech; All Rights Reserved CIOs Regaining Control? © 2014 Property of UBM Tech; All Rights Reserved Who Decides When Oversight’s Warranted? © 2014 Property of UBM Tech; All Rights Reserved Centralization Down © 2014 Property of UBM Tech; All Rights Reserved Printers, PCs, USBs, Oh My © 2014 Property of UBM Tech; All Rights Reserved Budget the New 80/20? © 2014 Property of UBM Tech; All Rights Reserved Outsourcing Holds Steady © 2014 Property of UBM Tech; All Rights Reserved Few Contractors: The Snowden Effect? © 2014 Property of UBM Tech; All Rights Reserved Quarterly Budgeting Gains Ground © 2014 Property of UBM Tech; All Rights Reserved Lack of Nimbleness © 2014 Property of UBM Tech; All Rights Reserved As Slush Funds Shrink, CIOs With Tin Cups? © 2014 Property of UBM Tech; All Rights Reserved Lack of Metrics © 2014 Property of UBM Tech; All Rights Reserved No Clear Trend on Percentage Allocated © 2014 Property of UBM Tech; All Rights Reserved Optimistic Outlook © 2014 Property of UBM Tech; All Rights Reserved Where Governance Exists, It’s Influential © 2014 Property of UBM Tech; All Rights Reserved Long-Range Planning Up © 2014 Property of UBM Tech; All Rights Reserved Charging Back Seems Stalled © 2014 Property of UBM Tech; All Rights Reserved Few Break 80% Barrier © 2014 Property of UBM Tech; All Rights Reserved LOB Leaders Like Transparency © 2014 Property of UBM Tech; All Rights Reserved “Showbacks” a Middle Ground © 2014 Property of UBM Tech; All Rights Reserved Excel Still Rules © 2014 Property of UBM Tech; All Rights Reserved IT as a Service Not a Budget Factor © 2014 Property of UBM Tech; All Rights Reserved Businesses Open To Funding © 2014 Property of UBM Tech; All Rights Reserved Job Function: Breaking Down the Outlook © 2014 Property of UBM Tech; All Rights Reserved Satisfaction With Process By Role © 2014 Property of UBM Tech; All Rights Reserved Satisfaction With Service By Role © 2014 Property of UBM Tech; All Rights Reserved Job Title © 2014 Property of UBM Tech; All Rights Reserved Industry © 2014 Property of UBM Tech; All Rights Reserved Revenue © 2014 Property of UBM Tech; All Rights Reserved Company Size © 2014 Property of UBM Tech; All Rights Reserved Research Synopsis Survey Name InformationWeek 2014 IT Budget Survey Survey Date October 2013 Region North America Number of Respondents 289 at organizations with 50 or more employees Purpose To determine practices, perceptions, and procedures surrounding IT budgeting in enterprise environments Methodology InformationWeek surveyed business technology decision-makers at North American organizations with 50 or more employees. The survey was conducted online, and respondents were recruited via an email invitation containing an embedded link to the survey. The email invitation was sent to qualified InformationWeek subscribers. Want more? Visit InformationWeek Reports © 2014 Property of UBM Tech; All Rights Reserved