IDC research group (www.idc.com) estimates that, including internal spending, the world’s largest companies spent US$895 billion on technology in 2014. IT vendors of all flavors long to harness a share of their hefty IT wallets not only for the revenue gains, but also for the bragging rights.
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, says the research group. As we enter the “innovation stage” of the third platform, IDC expects to see these companies focusing on value creation on top of their current technology foundation. Key findings of the report include:
° Wal-Mart was the largest IT spender worldwide in 2014. Bank of America placed second, followed by Citigroup, AT&T, and JPMorgan Chase & Co.
° 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 10 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.
To help ensure the satisfaction of these strategic clients, IDC 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, says the research group.