Gartner Survey Finds Growing Number of Enterprise Technologists Drive Funding for Technology Purchases Outside of IT


According to a recent Gartner, Inc. survey. Only 26% of technology investments are fully funded by the IT organization.

In November and December 2021Gartner surveyed 1,120 respondents at the manager level or above in organizations with at least $1 million annual turnover in North America, Western Europe and Asia Pacific to understand how organizations approach large-scale purchasing efforts for enterprise technology.

“As technology becomes more critical and integrated across the business, the dynamics of the buying team continue to evolve. In the past, it was relatively easy to predict who the buyers were, but everything that has changed,” said Derry N. Finkeldeyvice president of research at Gartner.

“A Gartner study found that 41% of employees are business technologists, building technology or analytics capabilities for internal or external business use and reporting outside of IT. In a world where most technologists work outside of corporate IT, literally anyone could be a technology buyer for their organization.”

The survey found that for large purchases in each major technology category, organizations take different financing approaches:

– The most common funding approach for hardware, technology services, and managed services is for IT to fund the entire purchase, followed by funding from multiple departments or BUs and IT .

– The most common funding model for software and embedded solutions reverses these two: multi-department funding and IT is the most common, followed by IT-only funding.

– IT provides at least part of the financing in 70% of the purchases studied.

– Seventy-five percent of respondents using shared funding approaches experienced delays in reaching agreement on budget allocation between groups.

“High-tech vendors need new approaches to identify not just who to engage, but also how to engage B2B buyers across all BUs, confident that their approaches will be effective and their roadmaps compelling. Product managers need to mentor the teams tasked with discovering budget availability to expand this research to also include the funding approach,” Finkeldey said.

Even as the role of enterprise technologists grows, product managers should not bypass central IT reps, even when discussing an industry or industry-specific use case with a business champion identified, because in almost all cases IT will continue to provide at least partial funding.

Gartner customers can learn more in “Anticipate Delays and Consensus Challenges When Funding is Distributed” and in the on-demand webinar The B2B Buying Myths That Are Costing You Business.

Learn about the top priorities for technology product managers in the free 2022 Leadership Vision for Technology Product Managers ebook.

Gartner Conference on Technology Growth and Innovation

Gartner analysts will provide additional analysis on technology buying behavior at Gartner Conference on Technology Growth and Innovation 2022, taking place virtually July 12-13 in the Americas. Follow conference news and updates on Twitter using #GartnerTGI.

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