Cloud Talent says firms waste millions on IT

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‘Stich in Time’ report canvassed the opinions of more than 150 IT decision makers and found that many purchase systems which go far beyond what they actually require

Private sector firms are wasting, on average, £74,000 every year on poor IT infrastructure, according to a new report from IT consultants Cloud Talent.

The main wastage came from IT staff spending more than half their time fixing problems rather than working on ways to make business processes run more smoothly through the use of technology.

“These figures are not a surprise to us. We actually expected them to be slightly higher across the board,” said Cloud Talent chief executive Adrian Overall. “We’re not talking about small firms here either. Companies with 1,000 or more employees are struggling from day to day with poor IT systems – wasting millions of pounds.”

The “Stitch in Time” report canvassed the opinions of 150 chief executives, managing directors, chief technology officers and heads of IT.

Overall says that many companies also waste significant amounts of money by purchasing expensive IT systems which have specifications far beyond their requirements.

He added: “One problem that affects at least 15 per cent of businesses is the issue of the hype cycle that the IT industry creates – a lot of companies buy systems that are too advanced for what they need, meaning they lose control very quickly, or systems that are not designed to scale and grow with their business.”

The report also revealed that firms place a significant emphasis on their IT infrastructure – a total of 63 per cent said it was the most important aspect of their business.

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