Businesses and organisations have been offered a number of tips to help protect IT investment funding.
IT analyst Gartner noted that almost every chief information officer (CIO) sees reducing operational expenditure and increasing the amount spent on IT as a top priority.
But many are failing to properly manage the operational costs of IT investment in new programs, which can erode funding, the firm warned.
"Organisations that overspend on operational activity have little money left to invest in new projects," said Stewart Buchanan, research vice-president at Gartner.
"Without reinvestment, organisations cannot restructure and optimise their operational spending.
This results in rising non-discretionary costs, which in turn leads to further underinvestment, lack of competitiveness, failing client service and loss of revenue, he said.
"This makes future spending even less affordable and even less avoidable," Mr Buchanan added.
"Program and project managers need to break their organisation out of this spiral of terminal decline."
In order to avoid this situation, Gartner has called on CIOs and IT professionals to diagnose the investment challenges faced and change governance to improve the way they are managed.
IT should also keep a log of "nasty surprises" the organisation has faced in budget management, allowing the department to plan ways to detect and avoid similar events in future.
Another tip is to create a single portfolio view of assets, services and project spending, while Gartner said IT should plan asset and service lifecycles to identify when investment is needed.
Finally, the analyst said firms should plan for success by agreeing how wider deployments will be paid for.
Posted by Jon Aspinell on 15th June 2012
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