A new report confirms what many in the IT sector have suspected – tech spending outside the IT department of Australian companies is increasing. Although 65 per cent of tech spending is controlled by the IT department, this will drop to 55 per cent over the next three years as other lines of business taking over more aspects of IT. This is according to a study, TechInsights Report: The changing role of IT and what to do about it by Vanson Bourne on behalf of CA Technologies. Vanson Bourne conducted the survey with 1,300 senior IT executives in 15 countries, including Australia. It concluded that over the coming years, IT departments must play a more strategic role in corporate decision-making to remain relevant. Australian respondents to the survey agreed, with 43 per cent saying that being a strategic business partner will be the main role of IT in three years’ time. This compared to 29 per cent believing this is the main of IT today, the research said. Hope Powers, managing director at CA Technologies, said the consequences of the move from centrally-managed IT has enormous consequences for IT leaders who must now become senior advisors who influence, guide and manage their organisation’s tech investments. Meanwhile, Australian respondents said the IT budget is split down the middle between keeping systems running and creating innovative products and services. But in three years’ time, 57 per cent of the budget will be spent on innovation. Thirty-eight per cent of respondents also said IT acts as a service brokers or consultant to other parts of the business rather than an exclusive supplier. Follow CIO Australia on Twitter and Like us on Facebook… Twitter: @CIO_Australia, Facebook: CIO Australia, or take part in the CIO conversation on LinkedIn: CIO Australia Follow Byron Connolly on Twitter:@ByronConnolly Related content brandpost Sponsored by Palo Alto Networks Operational technology systems require a robust Zero Trust strategy in 2024 Zero Trust provides a foundation for creating a stronger security posture in 2024. By Navneet Singh, vice president of marketing, network security, Palo Alto Networks Dec 05, 2023 6 mins Security brandpost Sponsored by AWS in collaboration with IBM How digital twin technology is changing complex industrial processes forever As the use cases for digital twins proliferate, it is becoming clear that data-driven enterprises with a track record of innovation stand the best chance of success. By Laura McEwan Dec 05, 2023 4 mins Digital Transformation brandpost Sponsored by AWS in collaboration with IBM Why modernising applications needs to be a ‘must’ for businesses seeking growth Around one-third of enterprises are spending heavily on application modernisation and aiming for cloud native status. The implications for corporate culture, structure and priorities will be profound. By Laura McEwan Dec 05, 2023 5 mins Digital Transformation opinion 11 ways to reduce your IT costs now Reorienting IT’s budget toward future opportunities is a big reason why CIOs should review their IT portfolios with an eye toward curbing unnecessary spending and realizing maximum value from every IT investment. By Stephanie Overby Dec 05, 2023 11 mins Budget Cloud Management IT Governance Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe