The Hub Commentary_
I agree that costs need to be managed, however, there comes a point of no return. Justifying the business value and return on investment is the shift IT organizations need to make in order to be competitive with the cloud and SaaS providers.
There needs to be focus on cost cutting where possible, however, there needs to be more focus on the delivery of value and growing the business with technology. It is great to spend on technology when you can illustrate gains in revenue through the use of technology whether it be customer retention and quality of service or a differentiating service in the market.
Are you merely counting pennies or spending to gain?
Companies overspent by more than $207 billion on technology and telecom purchases last year, according to NPI, a consulting firm specializing in the management of IT spending. Many enterprises were dealing with budgets that had been slashed during the Great Recession, even as new projects were expected to drive the innovation necessary for growth. (Read Full Article…)