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Report: Non-Tech Execs Have Say In Growing IT Budget

Top-level, non-technical business executives are playing a growing role in IT, say analysts at Forrester Research. And in so doing, a more strategic perspective is being applied to the enterprise technology decision-making process

According to a new survey, cross-functional committees in companies around the world are playing an integral role in setting IT direction. At the same time, these groups are thinking more strategically about IT, demonstrated by an increase in the percentage of IT budgets going toward both new IT investments and R&D from 2003 to 2004.

Many North American and European enterprises require CEO sign-off on new IT investments " 31 percent and 38 percent respectively.

Governance by committee has become the norm " 67 percent of large companies have committees of senior business leaders that oversee and prioritize IT investments.

Business units play a role in purchasing enterprise applications that directly affect their business processes " such as CRM, HR, finance " and are often involved in vendor selection. Twenty-six percent of enterprises include their business units in selecting software vendors, while 21 percent help select IT consulting vendors.

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