IT Spending: Let your budget be free

If you were looking for some ammo to get your budget increased for the coming fiscal year, Forrester has got your back with arguments why CEOs should stop limiting their IT budget allocations.

The gist of the argument is that putting CIOs under budget pressure forces them to spend on maintaining current operations rather than helping to grow the business. This isn’t a particularly universal argument; there are a lot of shops where IT really doesn’t have any clear or positive ROI avenues to contribute to business growth. The idea that new initiatives can contribute to efficiency and stability, though, can be easily substituted.

But the real problem with the Forrester argument is that they are probably advancing ideas that CEOs are already familiar with, and have rejected. More than once I have come across CEOs that squeeze IT budgets explicitly to prevent growth… growth in IT, at least. That is, after all, what they most frequently get for their invested IT dollars… new systems, more ongoing maintenance costs. There is no faster way to exist the CEO’s office than to come to him presenting as a positive something he has already mentally adjusted to as a negative.

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Mike Hanes

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