For a long time the technology investments businesses made were mainly in areas that would help keep back-office systems running. But today, businesses are increasingly relying on technology to deliver the company’s overall business strategy.
Examples of Australian businesses that have bumped up their technology investments over the years include major banks, such as Westpac, which recently announced it was boosting its annual investment spending toAU$1.3 billion to accelerate the digitisation of the business. Meanwhile, the Commonwealth of Australia racked up AU$628 million in total information technology service expenses during the first half of the 2015 financial year.
Similarly, during the federal government’s 2015 budget, it allocated AU$250 million for the Australian Bureau Statistics to undergo an IT overhaul to eliminate its legacy woes; while another AU$254 million was handed out to the Digital Transformation Office in the Department of Communications.
This is evidence of businesses shifting the way technology funding is allocated and the role technology now plays in any organisation.