The big guns: $895b spent on tech
The largest companies across the globe spent an estimated $895b on technology in 2014, according to the International Data Corporation.
In a new report, ‘The Big Guns: IDC’s Worldwide Top Ten IT Spenders’, IDC reveals the name and estimated spends for the worldwide top ten IT spenders of last year.
“IT vendors of all flavours long to harness a share of their hefty IT wallets not only for the revenue gains, but also for the bragging rights,” the company says in a statement. “To do business with these marquee firms is a stamp of credibility and an instant boost to market awareness.”
The new study is intended to help IT vendors have a better understanding of business imperatives and objectives driving investments in these large global companies. IDC says it can be also used as a benchmark to assists CIOs, IT executives, and line-of-business technology professionals in making more informed IT purchasing decisions.
“The activities of the largest IT spenders provide a glimpse into how these industry leaders are taking steps to transform their businesses for 2015 and beyond,” IDC explains. “As we enter the ‘innovation stage’ of the 3rd platform, IDC expects to see these companies focusing on value creation on top of their current technology foundation.” Key findings of this document include: • Nine out of ten spenders increased their IT spending from 2013 to 2014. • On average, these companies allocate about 1/3 of their technology spending to internal IT and telecommunications staff salaries and benefits.
Among the top ten spenders, IDC notes a combination of customer-facing initiatives, enterprise focused projects and third platform technology adoption and advancement.
“While varied, these companies have one characteristic in common; the expectation for high levels of service,” IDC says.
To help ensure the satisfaction of these strategic clients, the company recommends vendors should not only listen to their feedback, but also respond and react accordingly. “Knowing the client's industry is table stakes; to become more embedded in their business and make a significant impact, the conversations between vendor and client must change to be process and outcome focused,” IDC explains.
"When it comes to IT innovation, the world's largest companies are often criticised as being risk averse, sluggish and siloed," says Jessica Goepfert, programme director of IDC's Global Technology and Industry Research Organization.
"However there is no denying that the IT budgets of larger companies are, well, larger,” she says. “In addition, when acknowledged and appreciated, marquee organisations can be loyal, serve as references for industry peers, and also refer business to their major vendors."