Line-of-business spending means the CIO role is by-passed

An interesting tweet from deputy editor Sophie Curtis this morning, who’s attending the SAP user conference in Birmingham (#UKISUG11), England.

She referred to a presentation from IT analyst and guru Ray Wang, who suggests that IT budgets have been cut by 5% this year but that tech spending is up by between 18% and 22%.

How can such an apparent contradiction be correct? According to Curtis quoting Wang, the business side of the enterprise is now directly involved in the purchase of IT. In short, opportunities – like the cloud – are giving line-of-business executives the opportunity to purchase IT from their own budget and without the say-so of the CIO.

So, what does this move towards line-of-business purchasing mean for the CIO? Should the IT leader be concerned that the business is now buying behind its back?

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