In the next three years, all companies with budgets exceeding €200 million annually in information technology will have a performance manager. This is due to the significant savings, between 15% and 30%, that this feature can bring to the technology costs of the business.
A study by the Spanish technology company Orizon, carried out among more than 50 companies with this level of budget, reveals that reducing technological costs is a priority for 88% of IT managers. This is due to the growing distrust of managers about the real value of technology and the constant increase in its costs.
Migration to complex environments such as the cloud has generated unexpected cost overruns of around 45% in technology budgets, and close to 80% of organizations have not achieved their planned objectives. In the Spanish banking sector, the top 10 entities have doubled their technological spending since 2015, and it is expected to exceed €6.6 billion in 2025.
40% of companies already focus on performance
40% of companies have already begun to integrate professionals dedicated to performance management, under titles such as “head of special projects” or “head of IT projects for IT.” These professionals focus on ensuring that technological infrastructures and applications function correctly and meet established objectives, either internally or through vendors, and at the expected cost.
In a period of three years, all companies will have a performance manager because it will bring savings of between 15% and 30% to the business.
Orizon points out that the creation of this function is crucial to contain cost overruns, although 85% of these new managers cite the complexity and volatility of the systems as the main obstacle to achieving their objectives. The solution, according to Orizon, lies in the use of big data, advanced analytics and artificial intelligence tools to detect, analyze and correct failures throughout the technological chain.
Furthermore, organizations will only be able to optimize their costs if they have a unified vision of business technology, covering both hardware and software. Currently, less than 10% of companies have this unified vision. The Infrastructure and Operations area absorbs between 15% and 25% of the IT spending of large companies, while Development consumes between 30% and 40%.
Cutting-edge technology for a new manager
Orizon, specializing in the continuous performance of technology infrastructure and applications, believes that technology segmentation is the main cause of cost overruns, along with increasing technological complexity and dependence on external providers. The lack of communication between software development and its implementation in infrastructure causes problems that increase costs.
To address these challenges, Orizon offers a unique platform on the market (BOA) and a proprietary methodology (DevPerOps) to continuously monitor and optimize the performance of large enterprise applications. BOA also allows business financial and operational variables to be correlated with KPIs representative of IT performance, such as costs, response times, availability and compliance with service level agreements.
