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Budget constraints slow integration projects

From the National Computing Centre, Manchester UK.

Issued 5th October 2009

Demonstrating the tightening of the IT purse, budget limitations are forcing organisations to curtail their software development and integration programmes. This is according to 67% of respondents taking part in the latest survey from the National Computing Centre into the use of enterprise integration, SOA & web services solutions and undertaken on behalf of the NCC's Evaluation Centre service. (www.evaluationcentre.co.uk).

Against this background, 25% of companies are experiencing a substantial increase and 67% an increase in demand for integration projects. Similarly, the demand for interoperability and collaboration projects among customers, suppliers and business partners is also on the upward curve, with 8% of companies showing a substantial increase and 59% an increase in activity.

Although the demand for integration projects continues to grow, the same cannot be said for software budgets. A quarter of respondents (25%) expect their budget to decrease while 51% expect it to remain static this year. This compares to just 8% who see their budget growing substantially and 16% who expect some increase.

Steve Fox, Evaluation Centre Director, commented: "The consolidation and integration of disparate information systems can be critical for improving an organisation's operational processes and any curtailment in this activity could have a detrimental effect on the business."

The primary catalyst for integration projects, mentioned by 78% of respondents, is to create new or modified business processes. Providing a single consistent view of information scattered across multiple systems is a priority for 75% of organisations.

Other major drivers include the need to a create a better user interface or portal facility, mentioned by 70% of respondents, and consolidating access to multiple systems from a single point (60%), thus eliminating the need to switch between systems to access all the required information.

No company in the survey claims to have adopted SOA methodology throughout its organisation, but 29% have started using it in selected areas, a further 33% are piloting its use and 14% are planning to adopt it. This leaves only a few companies who will look at SOA in the future (10%) or who have no immediate plans to move in this direction (8%).

The main difficulty faced by organisations, when they decide to take the SOA route, is in cost-justifying the decision to senior management, mentioned by 75% of respondents. SOA requires a different approach to designing and developing IT systems - and ensuring that consistent SOA practices are followed throughout the organisation is a challenge for 50% of the companies.

Now that service oriented architecture has been around for a few years it appears its potential benefits are better understood throughout the business. A substantial number of respondents say their business understands SOA benefits 'very well' (17%),'quite well' (25%) or 'moderately well' (17%). On the other hand, 33% think there is little or no understanding of SOA concepts.

Survey statistics

We interviewed a broad selection of over 100 organisations for this year’s survey into the enterprise integration market. The largest sector represented is banking & finance, accounting for 20% of the sample, followed by IT & telecoms (17%), retail (17%), manufacturing (14%) and the public sector (12%).

The companies vary in size from those with an annual turnover of between £5 million and £10 million (10%), through to the very largest: 8% of the sample report a turnover of between £1 billion and £5 billion, while 16% exceed the £5 billion mark.

In the middle of the scale, 14% have a turnover of £10-50 million, another 12% fall into the £50 million to £100 million bracket, 24% between £100 million and £500 million and 8% have a turnover in the range £500 million to £1 billion. A further 8% are not-for-profit organisations.

The survey is available from www.evaluationcentre.co.uk

NOTE TO EDITORS

About The National Computing Centre (NCC)

The National Computing Centre (NCC) helps IT decision makers deliver effective solutions to business problems by bringing together users, experts and vendors to share experiences and develop best practices. We are a non-profit distributing organisation.

About the Evaluation Centre:

The Evaluation Centre (www.evaluationcentre.com) is an interactive service for end users and consultants to assist them in the procurement of software, services and technology.

Press enquiries:

For more information please contact Steve Fox on +44 (0)870 908 8767 or email steve.fox@ncc.co.uk or Cliff Mills on +44 (0)870 908 8767 or email cliff.mills@ncc.co.uk.

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Michael Dean
National Computing Centre
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Tel: +44 (0)161 242 2121
Mob: 07703 501 129
Michael.Dean@ncc.co.uk

 

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