Eight of Ten Dollars Enterprises Spend on IT is "Dead Money", says Gartner

Eight out of ten dollars that companies spend on IT is “dead money”, as too many IT organizations and too much IT spending is not contributing directly to business growth, according to Gartner. Most of IT spend is considered ‘dead money’ because, while it is keeping the lights on, it isn’t directly contributing to business growth or enhancing your competitive advantage, according to Gartner. 
At least two-thirds of all IT spending is just to sustain the business, not to change or transform the business. Only 20% of IT investments are allocated to do new things, to change the business, and the investment in innovations which could transform the business is even less.

A recent Gartner EXP survey showed that half of CIOs said business doesn’t know what it wants or business professionals don’t collaborate with IT organizations. Gartner analysts identified three ways IT leaders can spend their IT dollars differently:  

  • Intelligent Reinvestment 
  • Seize the Day on very key business initiatives
  • Make the Connection by making sure value is measured, discussed and managed 

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