Gartner: Funding for Tech Purchases Moving Outside IT
April 13, 2022
Share this

Almost three-fourths (74%) 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.

In November and December 2021, Gartner surveyed 1,120 manager-level or higher respondents in organizations with at least $1 million in annual revenue in North America, Western Europe and Asia/Pacific to understand how organizations approach large-scale buying efforts for enterprise technology.

"As technology becomes more critical to and embedded across the business, buying team dynamics continue to evolve. In the past, it was relatively easy to predict who buyers were, but all that has changed," said Derry N. Finkeldey, Research VP at Gartner.

"Gartner research found that 41% of employees are business technologists, creating technology or analytics capabilities for internal or external business use and reporting outside of IT departments. In a world where most technologists work outside the corporate IT department, literally anyone could be a technology buyer for their organization."

The survey found that across large purchases in every major technology category, organizations take varying approaches to funding:

■ The most common funding approach for hardware, technology services and managed services is for IT to fund the entire purchase, followed by funding coming from multiple departments or BUs and IT.

■ 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.

■ 75% of respondents using shared funding approaches experienced delays reaching agreement on the budget allocation between groups.

"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.

Share this

The Latest

February 06, 2023

This year 2023, at a macro level we are moving from an inflation economy to a recession and uncertain economy and the general theme is certainly going to be "Doing More with Less" and "Customer Experience is the King." Let us examine what trends and technologies will play a lending hand in these circumstances ...

February 02, 2023

As organizations continue to adapt to a post-pandemic surge in cloud-based productivity, the 2023 State of the Network report from Viavi Solutions details how end-user awareness remains critical and explores the benefits — and challenges — of cloud and off-premises network modernization initiatives ...

February 01, 2023

In the network engineering world, many teams have yet to realize the immense benefit real-time collaboration tools can bring to a successful automation strategy. By integrating a collaboration platform into a network automation strategy — and taking advantage of being able to share responses, files, videos and even links to applications and device statuses — network teams can leverage these tools to manage, monitor and update their networks in real time, and improve the ways in which they manage their networks ...

January 31, 2023

A recent study revealed only an alarming 5% of IT decision makers who report having complete visibility into employee adoption and usage of company-issued applications, demonstrating they are often unknowingly careless when it comes to software investments that can ultimately be costly in terms of time and resources ...

January 30, 2023

Everyone has visibility into their multi-cloud networking environment, but only some are happy with what they see. Unfortunately, this continues a trend. According to EMA's latest research, most network teams have some end-to-end visibility across their multi-cloud networks. Still, only 23.6% are fully satisfied with their multi-cloud network monitoring and troubleshooting capabilities ...

January 26, 2023

As enterprises work to implement or improve their observability practices, tool sprawl is a very real phenomenon ... Tool sprawl can and does happen all across the organization. In this post, though, we'll focus specifically on how and why observability efforts often result in tool sprawl, some of the possible negative consequences of that sprawl, and we'll offer some advice on how to reduce or even avoid sprawl ...

January 25, 2023

As companies generate more data across their network footprints, they need network observability tools to help find meaning in that data for better decision-making and problem solving. It seems many companies believe that adding more tools leads to better and faster insights ... And yet, observability tools aren't meeting many companies' needs. In fact, adding more tools introduces new challenges ...

January 24, 2023

Driven by the need to create scalable, faster, and more agile systems, businesses are adopting cloud native approaches. But cloud native environments also come with an explosion of data and complexity that makes it harder for businesses to detect and remediate issues before everything comes to a screeching halt. Observability, if done right, can make it easier to mitigate these challenges and remediate incidents before they become major customer-impacting problems ...

January 23, 2023

The spiraling cost of energy is forcing public cloud providers to raise their prices significantly. A recent report by Canalys predicted that public cloud prices will jump by around 20% in the US and more than 30% in Europe in 2023. These steep price increases will test the conventional wisdom that moving to the cloud is a cheap computing alternative ...

January 19, 2023

Despite strong interest over the past decade, the actual investment in DX has been recent. While 100% of enterprises are now engaged with DX in some way, most (77%) have begun their DX journey within the past two years. And most are early stage, with a fourth (24%) at the discussion stage and half (49%) currently transforming. Only 27% say they have finished their DX efforts ...