Money Doesn’t Grow on Trees

Sadly, many suppliers just don’t understand the modern CIO’s predicament. Almost every CIO we interviewed told stories about suppliers who apparently believe that in addition to its other responsibilities, the IT department also prints money.

Unless new funds are allocated, the CIO can spend only what’s already in the IT budget. The only way the CIO can find money for an unbudgeted project is to take money away from a project that’s already been given the green light.

Barring a crisis or disaster, the CIO is not likely to press for a last-minute reallocation of funds. What’s more likely is that the CIO will be pressured to trim or cut funding for existing projects. That’s the reality!

Let’s pause for a moment to validate your gut feeling that IT sales hasn’t turned out to be the cushy career choice you thought it would be.

Indeed, a quick stroll through a hypothetical version of a typical IT budgeting scenario reveals hazards for the IT supplier lurking at every turn.

  1. An IT supplier helps a business unit within a company identify a need. The supplier helps the business unit develop an initiative to address the need. The initiative will be forwarded to the company’s IT department for consideration.

  2. IT reviews the initiative and figures out what it should cost. Sometimes IT seeks estimates or advice from other suppliers. IT sends its cost estimate back to the business unit.

  3. The business unit decides whether it can afford the cost of the initiative. If the ...

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