Business managers to fund European IT spending

In Europe we are witnessing a shift in technology spending from IT to the line of business (LOB). In a new update to the Worldwide Semiannual IT Spending Guide: Line of Business, International Data Corporation (IDC) forecasts that European technology spending by LOB decision makers will steadily grow and will increase faster than spending funded by IT organizations through 2022.

European companies are forecast to spend $399 billion on IT (hardware, software, and services) in 2019. More than half of that spending (58.9%) will come from the IT budget, while the remainder (41.1%) will come from the budgets of technology buyers outside of IT. Nonetheless, LOB technology spending will grow at a faster rate than IT spending in the years ahead. The compound annual growth rate (CAGR) for LOB spending over the 2017–2022 forecast period is forecast to be 5.9%, compared with a 2.9% CAGR for IT spending.

In 2019, banking, discrete manufacturing, and process manufacturing will have the largest spend coming from LOBs. Retail, professional services, and discrete manufacturing will have the fastest LOB spending growth over 2018.

"In Europe, business managers are raising their voice in the IT decision-making process," said Andrea Minonne, senior research analyst at IDC Customer Insights & Analysis. "This trend is revolutionizing and disrupting how companies make technology investments, with LOBs more often claiming control over IT budgets. The consumerization of applications, especially those to access content and improve collaboration, together with the more mainstream use of cloud solutions, the uptake of software as a service, and the BYOD area, are driving LOBs to make technology investments independently. This results in a greater tendency to skip IT department approval, which can sometimes take a long time and delay workloads."

runZero teams up with Aqaio to enhance its exposure management platform in Germany, aiming to...
A study reveals significant benefits and challenges for U.K. businesses transitioning to Microsoft...
Red Hat introduces updates to streamline partner interactions, focusing on specialisation and...
Slow AI adoption poses financial risks for UK businesses, but strategic opportunities exist in...
Tintri's VMstore is setting new standards in data management for Kubernetes, with significant...
Acronis partners with Metrofile Cloud to enhance disaster recovery, offering advanced solutions...
ONEKEY unveils integrated RED II testing, revolutionizing compliance for radio module manufacturers.
Cezary Zieba joins BCS with a mission to enhance operations in Poland and Central Europe.