Companies still clueless about their software spend

Businesses need to radically shake up their attitudes about how they value information technology assets, according to new research released yesterday. The Paris-based business school Insead, which carried out the study, said it found that far from understanding IT assets as a core business need, many firms instead wrote …

[Aitor]

Wrong analysis

Sorry, but you got it all wrong (In my not so humble opinion).

They do not know how much is spent on software because only big projects have to pass stiff barriers (this is: project bids, etc etc).

There is a good reason for this: it is reasonable to have these measures for big & slow to implement projects, but when you need a software tool, you need it FAST, you just can't wait three months for approval. So each department gets its own software using their "expenditure budget". That is the reason for it.

So, if you did what this report suggests, you would need approval for everything you need.. and the company would have to resort to outright piracy to function. You might suggest that you only have to "inform", but accountants need both a figure and a reason to buy things, and some things are necessary but hard to explain to an accountant.

My suggestion: it is OK as it is.

[Sampler]

Great

More people who don't know what they're doing getting involved is bound to makesure we end up getting the software we need and not the junk vendors push to shift.

[A J Stiles]

You mean .....

..... people still pay for software in this day and age?

[Pascal Monett]

IT is a cost center

And today's managers that are long in the teeth want to shine, so they shift IT responsibilities to dead-end managers that don't have a future in the company.

Plus, it's a lot easier to blame a subordinate for wasting corporate money. If you've approved the expense yourself, then you're the one who might be shipped off.

[Daniel Lindborg]

IT is value !

As IT is fundamental in many organizations today, a part of core business, you cannot just see IT just as a cost, you have to look at the business value it brings. Otherwize the IT-department will not survive!