IT Spending in 2013: More of the Same with More at Stake

Spend Matters welcomes another guest post from NPI, a spend management consultancy, focused on delivering savings in the areas of IT, telecom and transportation.

'Tis the season for IT spending predictions, with the latest hailing from CIO Magazine's recent Tech Poll/Tech Priorities survey. In many respects, 2013 should look a lot like 2012, with respondents reporting similar budget increases (or lack thereof) and hot IT investment areas.

But, while the IT landscape may look the same on the surface, NPI believes IT managers and buyers should expect a more aggressive vendor contracting environment. Mobile, business intelligence (BI) and cloud technologies – the top categories for IT growth – have become deeply entrenched in the enterprise.

As the number of users and the extent to which they rely on these technologies increases, enterprises must be more diligent about how they manage licenses, anticipate changes in pricing and terms, and negotiate vendor fees and incentives. In fact, we see many clients implementing VMOs to better manage risks and the value they receive from their entrenched suppliers.

Here are a few key insights gleaned from CIO's survey of 269 top decision-makers:

What will IT budgets look like in 2013?
48 percent report that IT spending will increase over the next year, and 39 percent expect budgets to remain flat. Only 13 percent foresee IT budget cuts.

What's driving increased IT investment?
More than one-third of respondents cite business process innovation as the key driver for increased spending. 22 percent attribute it to creating top line revenue growth, and another 22 percent for more efficient management of IT infrastructure. 18 percent are investing more to lower business operating costs.

What are the hot areas of investment?
CIOs report that mobile, BI and cloud are IT investment hotspots in 2013. Mobile technologies (58 percent) lead the way, with many in the process of piloting mobile-technology related programs and technologies. Other high-demand areas are BI and analytics (39 percent); business process management (36 percent); cloud external/public (32 percent); social media/collaboration tools (31 percent); and cloud internal/private (31 percent).

- Jeff Muscarella, EVP of IT, NPI

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