Gartner Survey Finds Rise In Business Technologists Is Driving Funding For Tech Purchases Outside Of IT
According to a recent Gartner, Inc. survey, 74% of technology acquisitions are supported, at least partially, by business units (BUs) outside of IT. Only 26% of technology initiatives are wholly supported by the IT department.
Gartner questioned 1,120 managers or higher at firms with at least $1 million in annual revenue in North America, Western Europe, and Asia/Pacific in November and December 2021 to learn how they approach large-scale enterprise technology purchase efforts.
“As technology becomes more critical to and embedded across the business, buying team dynamics continue to evolve. In the past, it was relatively easy to predict who buyers were, but all that has changed. Gartner research found that 41% of employees are business technologists, creating technology or analytics capabilities for internal or external business use and reporting outside of IT departments. In a world where most technologists work outside the corporate IT department, literally, anyone could be a technology buyer for their organization,”said Derry N. Finkeldey, research vice-president at Gartner.
According to the report, firms employ different techniques to funding substantial expenditures in every key technology category:
- For hardware, technological services, and managed services, the most frequent funding method is for IT to cover the whole purchase, followed by funding from several departments or BUs and IT.
- The most popular software and integrated solution funding approach reverse these two: The most prevalent type of funding is a combination of numerous departments and IT, followed by IT-only funding.
- In 70% of the purchases examined, IT provides at least part of the funding.
- Seventy-five percent of respondents who used shared financing methods said it took them longer to agree on budget allocation amongst groups.
“High-tech providers need new approaches to identify not only whom to engage, but also how to engage B2B buyers across all BUs, with confidence that their approaches will be effective and their roadmaps compelling. Product leaders need to coach teams tasked with discovering budget availability to extend that research to also include the funding approach,”said Finkeldey.
Even as the role of business technologists grows, product leaders should not bypass central IT representatives even when addressing an industry- or line-of-business-specific use case with an identified business champion, because in nearly every case, IT will continue to provide at least partial funding.