Only 5% of local companies` budgets have been earmarked for future growth and the introduction of new technologies, says Johan Jacobs, Meta Group senior research analyst.
Speaking at the opening of the Futurex conference in Cape Town today, Jacobs said 75% of companies` budgets is spent on core IT issues and non-discretionary spending, and the remaining 25% is spent on discretionary issues.
"This means that companies are using their IT budgets to 'keep the lights on` rather than also looking towards the future and planning for it."
Jacobs said the role of a company`s chief information officer (CIO) has to shift from being "the IT investment fund manager within the organisation as he moves to not only protect the investment, but to plan for change".
He noted that as the IT function has become more integrated within the business, the budget allocation has shifted away from the IT departments to the operational side of the business. At the same time, IT project managers are becoming business process project managers.
According to Meta`s research, 67% of South African companies say their IT departments have low credibility within their organisations.
"This is a main reason why outsourcing many of the IT functions has become the single biggest growth sector of the industry."
Other trends cited by Jacobs include the emergence of the virtual workforce, customisation of security issues, the increase in information storage capacity and managing the mobile workforce.
The Futurex Cape 2004 conference runs today and tomorrow. Thursday`s speakers will include Mthunzi Mdwaba, executive chairman of Torque-IT and ITA president; Teresa Peters, executive director of Bridges.org; and Angus Hay, Transtel`s chief technology officer.
It is organised by ITWeb in association with the CSSA, EIF, CITI and ITA, and runs alongside the Futurex Cape Town exhibition.
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