Study: Spending IT Funds on People Pays More Than Investments in Technology

Those that spend more on technology tend to have higher sales and revenues than those that don’t. That’s the finding of a groundbreaking study of the effect of technology spending on 1,300 U.S. corporations in 1998 by Sumit Sircar, professor and chairman of the Information Systems and Management Sciences Department in the College of Business Administration at the University of Texas at Arlington. But it’s the people and processes that make the difference, not the boxes and wires, according to researchers. The strongest correlation between technology spending and increases in sales and revenue was found in the amount spent on the management of IS and training of IS people. Read his study in the Journal of Management Information Systems or check it out online at www.cio.com/printlinks.