Menu
Menu
​One in ten IT teams wasting $100k a year

​One in ten IT teams wasting $100k a year

41 per cent of IT leaders purchased or implemented technology that was then never used in the business

One in ten IT teams are wasting more than $100k a year on redundant technology as decision-makers are feeling added pressure to spend products and services that might not benefit the business.

A study by deciBel Research spanning IT leaders across Australia and New Zealand found 10 per cent of companies wasted over $100,000 a year on outdated technology following pressure from the boardroom, as well as experience poor ROI and outsourcing experiences.

Another 13 per cent claimed to have wasted between $50,000-$99,999, and 25 per cent wasted between $10,000-$49,999, according to the research commissioned by Rackspace.

Two in five respondents said they have purchased or implemented technology that has not ever been used within their organisation. Meanwhile, respondents from both medium (45 per cent) and large (38 per cent) businesses have released a version of software to the wider business that has caused issues.

Forty three per cent of surveyed IT decisions makers claimed to have experienced executive pressure to implement technology, even though they personally believed it was too risky for the business.

Almost three quarters (73 per cent) reported making a poor purchasing decision, including software or hardware that didn’t deliver its promised or became irrelevant within the intended lifespan.

Almost three in five (57 per cent) claimed to have had a negative outsourcing experience from an IT service provider, due to badly managed services (48 per cent), services continually going down (31 per cent) and security concerns (31 per cent).

Angus Dorney, director and GM, Rackspace ANZ, said the research reflected how difficult it can be today to predict if a purchase is going to deliver on its promise to provide your business with sufficient ROI.

“In a crowded market where new technologies are released at such a rapid rate, the modern day choice has become less black and white than it was a decade ago,” said Dorney.

“Helping to ensure you’re making the right choices when it comes to technology can come down to doing your research, taking the time to do an in-depth comparison of the available offerings and consulting reputable and experienced providers.

“If you do the ground work, you’re more likely to have the foundation you need for a swift and seamless implementation, selecting the right technology for your business needs.”

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

Join the CIO newsletter!

Error: Please check your email address.

Tags wasted moneyoutsourcingcostroiIT spendboardroomIT expenditureredundant ITrackspace

More about Rackspace

Show Comments