Financial considerations are becoming more and more significant for senior executives who make IT investment decisions, according to a recent study in the US.
Eighty per cent of those surveyed said they have to cost-justify IT projects that cost less than $100,000, and that many projects valued at less than $10,000 require a sign-off.
While 79 per cent of Fortune 1000 IT decision-makers agree that financial justification of IT projects are important to them, less than half conduct business case analyses on a regular basis, according to a recent survey by accountants Ernst & Young.
Ernst & Young conducted the survey of more than 100 chief information officers, chief technology officers and other executives responsible for making IT investment decisions from a variety of vertical industries, between May and July.
The respondents also said that financial justification is important for IT security, customer relationship management and supply chain management projects. E-learning and mobile commerce projects were said to be less important to cost justify.
According to Chris Mazzei, co-author of the report, IT decision-makers often lack the tools, resources and time to conduct a full-blown, return on investment (ROI) analysis for most IT projects.
IT decision-makers also reported they did not have much trust in the vendors they work with - a mere two per cent of those surveyed said they have a "high degree" of trust in vendor-supplied metrics.
To improve that, 59 per cent said they would rather receive more customised and detailed vendor-supplied metrics for the products and services they considered.
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