The world's largest companies spent $US895 billion on technology in 2014 with IT vendors of all flavours longing to harness a share of their hefty IT wallets not only for the revenue gains, but also for the bragging rights.
Consequently, International Data Corporation (IDC) believes that to do business with these marquee firms is a stamp of credibility and an instant boost to market awareness.
This new study, The Big Guns: IDC's Worldwide Top Ten IT Spenders, is intended to help IT vendors have a better understanding of business imperatives and objectives driving investments in these large global companies.
It can be also used as a benchmark to assists CIOs, IT executives, and line-of-business technology professionals in making more informed IT purchasing decisions.
According to IDC, 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.
As the industry enters the "innovation stage" of the 3rd platform, IDC expects to see these companies focusing on value creation on top of their current technology foundation.
Key findings of this document include:
- Wal-Mart Stores Inc. was the largest IT spender worldwide in 2014. Bank of America Corporation placed second, followed by Citigroup Inc., AT&T Inc., and JPMorgan Chase & Co.
- Nine out of 10 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.
"When it comes to IT innovation, the world's largest companies are often criticised as being risk averse, sluggish and siloed,” says Jessica Goepfert, program director of IDC's Global Technology and Industry Research Organisation.
"However there is no denying that the IT budgets of larger companies are, well, larger.
“In addition, when acknowledged and appreciated, marquee organisations can be loyal, serve as references for industry peers, and also refer business to their major vendors."