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IT Spending: Financing New Initiatives by Reducing IT Waste

By Dick Weisinger

How much are businesses spending on IT? 8.2 percent of revenue, according to a report by Flexera. And even slightly more, 9.3 percent of revenue, for businesses with more than 10,000 employees.

Top priorities for spending include:

  • Digital Transformation
  • Cybersecurity
  • Customer experience
  • Migration to the cloud

The report finds that as much as 30 percent of the IT budget is wasted or at least not being efficiently used. The suggestion is to try to get a handle on waste to free up dollars that can then be applied towards new initiatives, like digital transformation.

“Companies that invest time and resources in this effort stand to achieve significant return on investment through the cost savings afforded by IT spend optimization.”

Flexera: 2020 State of Tech Spend

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