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Three-Quarters of Technology Purchases are Made Outside the IT Department

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Only 26 percent of technology investments are made entirely within the IT department. Gartner notes a trend where different departments buy together, requiring a new approach.

 

Gartner surveyed 1,120 executives in North America, Western Europe and the Asia-Pacific region in companies with more than $1 million in revenue. This shows that in 74 percent of the cases, IT does not make technology purchases exclusively, although the department often remains involved.

This is because more and more non-IT employees are using certain technology or analysis tools or preparing reports, which used to happen more often in the IT department.

In general, the IT department usually purchases hardware, technology services, and managed services. The financial resources usually come from different departments for software and integrated solutions, although IT is still regularly involved.

Gartner also notes pain points in this new approach. For example, three-quarters of the organizations where the resources come from different departments indicate that the decision-making process about budgets is delayed.

On the sellers’ side, it is a challenge because those responsible for the purchase are more diverse and less predictable. As a result, the roadmap of a product or service has to appeal to multiple parties. In addition to knowing who to convince, sellers also have to respond to dealing with that fragmented budgeting.

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