Recent estimates from the US suggest that between 10% and 40% of overall IT costs can be saved by effective procurement and management of hardware and software – but the study found this issue is not being addressed.
The firm’s survey of 200 finance directors, managing directors and senior managers across UK business found almost half have no idea how much their annual IT budget is. Moreover, 80% did not know what cost savings they may be making from management of IT assets.
‘For many firms IT assets represent their [firms] main area of capital expenditure,’ the report said.
‘The failings are almost universally caused because the organisation does not have an IT asset mangagement policy agreed at board level – and therefore IT management does not have a budget to carry out this work.’
KPMG’s key reason for waste include:
- ‘Renegade’ purchasing outside the authorised IT budget;
- Lack of any managerial accountability for the area;
- Bureaucratic and complex procurement processes;
- Failure to consider the question at board level.
Paul Diamond, KPMG’s director of Information Risk Management, said: ‘Organisations wishing to gain a degree of control over their IT budgets can do a number of things immediately.’
He recommended making an IT audit, appointing a manager for IT asset management and licensing matters and appointing one or two trusted suppliers and insisting that all IT purchasing goes through them.
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