Eight out of every 10 dollars spent by companies on IT is dead money, says international research firm Gartner.
In a statement, it says the fact that there are too many IT firms and too much spending is not contributing directly to business growth.
"We say dead money because, while it is keeping the lights on, it isn`t directly contributing to your business growth or enhancing your competitive advantage," says Daryl Plummer, managing VP and Gartner fellow.
"In today`s environment, any corporate function that doesn`t contribute to growth or competitiveness is ultimately expendable. Your placement of resources is more critical than ever to your ability to deliver the growth and competitive advantage that your CEO is expecting."
At least two-thirds of all IT spending is just to sustain the business, not to change or transform the business. The investments allocated to do new things, to change the business, are usually low, no more than 20%, and the investment in innovations which could transform the business is even less, the research firm argues.
It says the challenge for IT leaders is to get their budget from 80% spent on "keeping the lights on" to 60% or less, so they can use that money in new ways to drive growth.
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