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Global IT spending in 2011 on BPM to increase - Gartner

SearchCIO.in Staff

The worldwide IT spending in 2011 will grow substantially on business process management (BPM) projects, according to market research carried out by Gartner.

According 

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to Gartner principal research analyst Teresa Jones, the increase in IT spending on BPM is due to the solution’s ability to help organizations better their business outcomes and to support the strategies that assure restoration of growth. Jones advises the users: “There is a mismatch between what users think they will achieve from BPM and what they actually achieve. Understanding the real benefits and how to measure them will help organizations create better business cases and get the expected business results.”

According to Gartner, the survey respondents were optimistic about their IT spending plans, with 54 percent planning an IT spending increase of 5 percent or more and almost 20 percent planning an increase of more than 10 percent during 2011.


Regional trends

The respondents from Asia/Pacific expected substantial rises in BPM IT spending, with 25 percent indicating that growth in spending would probably cross 10 percent. “Many Asia/Pacific countries are showing strong economic growth, which correlates well with increased IT spending. BPM can help in making pliable business solutions that support growth.”

Gartner observes that organizations are taking to new models of IT spending such as software as a service (SaaS) to reduce their initial costs. The research firm states that since BPM project funding comes not from an IT spending budget but from the line of business budget in 66 percent of cases, and because BPM is focused on business outcomes, many business units are funding it more readily than other IT spending projects.

The viewpoints widely differed globally with respect to average initial IT spending on a BPM project within their organizations. The mostly commonly quoted initial IT spending on BPM was between $100,000 and $200,000, which is lower than many BPM suite implementation projects. Asia/Pacific respondents cited further lower initial IT spending values, with nearly 35 percent spending between $50,000 and $100,000. Gartner says that this points to the lower fees charged by software vendors and service providers in Asia/Pacific.

“The survey findings indicate that users might want someBPM software capabilities but not necessarily a full blown BPMS,” says Ms. Jones, commenting onthe BPM IT spending trends. “Many organizations do not aim to achieve full process automation throughout their enterprise; most people improve process by process.”

The research firm carried out the BPM IT spending survey amongst 600 mid-to-large user organizations from 14 countries globaly in Q3-2010. The survey was meant to highlight adoption patterns, preferences, and IT spending plans related to BPM.