Originally posted by Xtelesis.
In our business, we spend a majority of our time working with IT professionals to provide solutions that meet their technology and budget needs. We know first hand the challenges IT professionals face in an ever-changing industry. A recent study, by McKinsey Global Survey, shows some interesting insights into the shifting demands on IT professionals.
According to the survey, today’s businesses are most vulnerable to the rising expectations of their customers and the significant changes in delivery costs regarding technology. The stress on IT directors and specialists is continually rising as executives look to them to cut costs and find benefits from products and services like cloud computing.
Two other areas of concern for companies are the emergence of new products or services from competitors and competitors who have developed new offerings “outside their current scope, such as telecommunication companies offering cloud-computing services,” said the report.
The pressure is on IT professionals to improve cost efficiency and effectiveness of business processes while reducing IT expenses. These three objectives were ranked highest when survey respondents were asked to describe the priorities of the IT department in the next budget cycle. Of those surveyed, 36% expect IT operating expenses to decrease in the next budget cycle, while 28% expect those costs to increase.
On the other hand, the majority (55%) expect costs related to new investments in information technology will increase. With new products and services continually available, and an expectation of business growth, and a need to counter technology-related threats, IT professionals expect to spend more in 2011 on new IT-related investments.
As an example executives no longer consider changing the scope of projects or reducing costs a top priority and have moved that to the lowest priority in 2011. As companies expect growth and see a increasing need to counter threat from competitors, the pressure is on IT professionals to overcome concerns and deliver on new investments.
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Click here to download the full report from McKinsey Global Survey.