Over half of IT investment doesn't make money, according to research

Over half of UK IT investment is not making money for the majority of businesses, according to research.

Some 85 per cent of companies are channelling more than 50 per cent of IT investment into non-revenue generating activities such as compliance, says a survey of 100 leading companies in the UK, Ireland, Belgium and the Netherlands commissioned by Citrix.

Only 16 per cent of major UK businesses say they spend more of their IT budget on revenue-generating projects, and for six per cent of companies compliance is swallowing up 80 per cent of the IT budget.

However, despite not appreciating how to maximise IT spend, many companies feel their budget balance is right.

Richard Jackson, managing director at Citrix UK, advises businesses to think longer term when planning their IT spending and to focus on making the business more efficient to achieve an optimum return.

‘Enterprises are forced to get more and more efficient, so knowing where to spend money and get the most return is critical to survival,' he said.

'Pouring good money after bad into projects that don’t create a return is not only asking for trouble, but it gives corporate IT a bad name.’

‘Regulatory compliance is a key issue, but without unwavering focus on revenue, many businesses could find their main challenge is merely staying afloat,' he said.