Developing the appropriate level of IT spending for an organization is an important element of IT strategy. On the one hand, IT executives seek to increase IT spending in order to better serve users. On the other hand, the IT function is no different from any other—it must accomplish its mission within the budgetary constraints of the organization. Inevitably, executives seek guidance in the form of benchmarks based on the experiences of other organizations' IT spending.rnHowever, in studying IT spending benchmarks, it is easy to miss long-term trends. Just as day-to-day fluctuations in the weather can mask long-term climate changes, so can natural variations in IT budgets and corporate performance from year to year mask the long-term economic forces that drive the overall level of IT spending.
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