IT Spending For New Initiatives: Key Measure of Efficiency, Competitiveness

January, 2008


Tracking the ratio of ongoing IT support costs to new-initiative spending can be critical for maintaining a proper level of investment in IT infrastructure. In this study, we look at the percentage of the IT budget currently allocated to new initiatives, establish a benchmark for an appropriate ratio of spending on new initiatives versus ongoing support, assess current practices on tracking new-initiative spending, and discuss advantages for establishing systems to track this important ratio. The study is based on interviews with IT executives and a survey conducted in October and November 2007 on IT budgeting. The study analyzes responses from 112 IT executives representing companies with annual sales between $30 million and $100 billion. (3 pp., 4 figs.)
[Executive Summary]