HomeLatest FeedsTechnology NewsMost businesses do not properly optimize their IT budget

Most businesses do not properly optimize their IT budget

Despite shrinking budgets, the vast majority (95%) of global enterprises are not fully optimizing their IT budgets, according to new research from Crayon.

The study of more than 2,000 IT decision makers (ITDMs), reflecting on 171,000 layoffs by 594 technology companies in the first months of 2023, found that nine out of 10 companies listed IT cost optimization as a top priority. Looking ahead, Crayon has highlighted some key points of failure that can help businesses get back on track and rein in spending again.

According to the survey, just over a third (35%) of companies are actively evaluating their IT spend, indicating the magnitude of potentially wasted money that could be reinvested into something that delivers a better return, or could be saved entirely.

More companies are turning to FinOps instead of leaving cost decisions to the CFO or finance teams, according to Crayon’s study. The FinOps approach sees greater cross-departmental collaboration to create better understanding, streamlining and optimization overall, and this has been most noticeable in countries such as Singapore, Saudi Arabia and parts of Scandinavia.

This move also reflects the lack of time for senior decision-makers and the lack of transparency of the organization’s expenses, as entire business models are forced to adapt. Hayley Mooney, CEO of Crayon, explained: “Many businesses don’t address IT spend as thoroughly as other larger items. To overcome this and weather the storm, now and in the future, organizations need to work with a partner to draw the right boundaries between different technologies and platforms, business needs, contractual details and overlooked subscriptions, organizational structures, skills gaps and more.”

This collaboration is also being seen more broadly as Big Tech comes under increasing pressure from antitrust cases and other similar warnings, leading many to suspect that leveraging a more collaborative environment with third parties may be the way of the future. TechRadar.

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