Over 50% of enterprises plan to increase spending on digital transformation initiatives, with only 19 per cent of companies planning to spend less on digital transformation. The ability to deliver a measurable return on tech investment quickly (and to the satisfaction of internal stakeholders) is the number one concern for 64 per cent of decision-makers.
These are some of the sentiments revealed in a new IFS survey, Digital Transformation Investment in 2020 and Beyond: Factors That Will Impact the Success or Failure of Technology Investments in the Post-Pandemic Era, published this week. The research surveyed more than 3,000 IT decision-makers across Australia, France, Germany, the Nordics, UK and USA.
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Throwing light on the purchasing practices, the IFS survey reveals over a quarter (27 per cent) of respondents report that being locked into a technology vendor has, or is, disrupting transformation in their organization.
Given the digital imperative, executives are seeking speedy value from technology that’s ‘fit for purpose’ and free from vendor lock-in practices.
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The report states almost a third (32 per cent) experienced being forced by senior management, or their board of directors, to buy from a vendor and/or use technology that’s well-known, but not necessarily fit-for-purpose.
Despite almost half (47 per cent) of respondents citing that the successful delivery of digital transformation projects hinges on technology that is fit for purpose, over a quarter (27 per cent) report that being locked into a technology vendor has, or is, disrupting transformation in their organization.
Too many organizations are being suffocated by the legacy software vendors
What would help buyers trust IT Vendors more:
- Delivering on time (46 per cent)
- Support before, during and after project delivery (42 per cent)
- Delivering projects that are faster to realize the value (37 per cent)
Project failures have a bigger impact on the business
Near 70% of respondents said it took anywhere between 1-3 years to recover from an IT project failure. The report notes, under the weight of today’s macro-economic pressures, businesses simply don’t have that amount of time to waste.
Leading BPM provider Appdynamics’ Agents of Transformation survey revealed enterprises approving digital transformation projects within weeks amid pandemic which would have taken up to a year for approval in the pre-pandemic days.
Gartner forecasts the rest of 2020 could see a 8% decline in global IT spending while Australia is set to experience a 6% fall in IT spend.
Although overall numbers show a decline, the trend is clearly favouring projects delivering on business transformation initiatives amid the pandemic. The increase in cloud, security and blockchain spending confirms the trend.
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