Gartner: Business Technologists Drive Funding for Tech Purchases Outside of IT
April 13, 2022
percent of technology purchases are funded,
at least partially, by business units (BUs)
outside of IT, according to a recent Gartner
survey. Only 26% of technology investments
are funded entirely by the IT organization.
Joe Marcaurelle, Inmar
Intelligence Director of Product Strategy -
Supplytech added, "Business unit
spending on IT-related functions is likely
to increase as organizations of all sizes
embrace digital transformation. Cloud
computing enables business leaders to
develop integrated ecosystems that meet
their objectives and increase visibility,
while lowering capex investments and
mitigating risks – particularly in the areas
of cybersecurity and systems obsolescence.
In a recent
Inmar’s CEO, David Mounts, stated that
ecosystems were essential for overcoming
what he called
The survey found that across large
purchases in every major technology
category, organizations take varying
approaches to funding:
The most common funding model for software and integrated solutions flip these two: Funding by multiple departments and IT is most common, followed by IT-only funding.
IT is providing at least part of the funding in 70% of the purchases studied.
Seventy-five percent of respondents using shared funding approaches experienced delays reaching agreement on the budget allocation between groups.
According to Akshay Sharma, CTO, Kovair Software, and former Gartner Analyst, “We agree with the Gartner findings that IT Funding from external business units will be more prevalent in the near future, until IT is totally self-sustainable. To be self-funded, IT needs to shift from a Cost Center to a Value Center, which Kovair uniquely enables, with it’s end-2-end Project and Portfolio Management capabilities additionally within our VSMP: Value Stream Management Platform, and iPaaS (integration Platform as a Service) solution set. The Kovair solutions help enable Industry 4.0, with governance, policy-controlled automation, with value-centric business outcomes. With revenue management, these platforms can help transition IT from a Cost Center to a Value Center, with the ability to generate an invoice for IT Services, IT Products, and IT API’s being leveraged.”
“High-tech providers need new approaches to
identify not only whom to engage, but also
how to engage B2B buyers across all BUs,
with confidence that their approaches will
be effective and their roadmaps compelling.
Product leaders need to coach teams tasked
with discovering budget availability to
extend that research to also include the
funding approach,” said Finkeldey.
Even as the role of business technologists grows, product leaders should not bypass central IT representatives even when addressing an industry- or line-of-business-specific use case with an identified business champion, because in nearly every case, IT will continue to provide at least partial funding.