While IT managers are expected to demonstrate value, they report a lack in tools to justify an investment.

Michelle Bailey - Director of Research, ITCentrix

The requirement for IT managers to justify the business case for investments has not been this strict in perhaps two decades. It's not surprising. Overcapacity, a weak economy and the lack of payback for scads of deployed applications have led to a clampdown on infrastructure spending by financial executives. This has only exacerbated the challenge for IT managers.

In a recent survey of 220 IT executives, more than half (55%) of all survey participants were required to use financial metrics to justify a technology expense. The most common metrics employed are hard dollar savings, ROI, Break-even and TCO. However, only 17.7% of the sample has a formal process or methodology at their organization that they can use.

Clearly a disconnect exists between what is expected of the IT organization and the tools they have to justify a project. One thing is clear; the financial and business discipline required by IT professionals continues to increase and is not likely to abate any time soon.