'Shadow IT' growing, study finds

More than a fifth of the spending on information technology by Australian businesses is taking place outside of IT departments, according to new research.

A survey of 424 Australian CIOs and other ICT decision makers by analyst firm Telsyte revealed that 79 per cent of them worked in an organisation that had a least one line of business with its own IT budget.

Australian IT departments are also having to deal with more business unit IT spending with 79 per cent of organisations having at least one line of business – including marketing, operations and finance – with its own IT budget.

That result represents an increase of 5 per cent compared to last year, according to Telsyte senior analyst Rodney Gedda.

Analyst firm Telsyte's Australian Digital Workplace Study 2015 also found that most CIOs believed that line of business IT spending would eclipse centralised IT procurement within half a decade.

The survey all found more than half of CIOs predicting a boost to their head counts this year and expecting an average increase of 5 per cent increase in their budgets.

Copyright © 2015 IDG Communications, Inc.

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