Within three years every company will have a performance officer, saving the business between 15% and 30%

Madrid, 31 October 2024. – Within three years, every company with an annual IT budget above €200 million will have a performance officer in its organisation, because applying this discipline saves between 15% and 30% of the cost of business technology.

Moreover, according to a report by the Spanish technology company Orizon among more than 50 companies with budgets of this size, cutting the technology bill is a priority for 88% of IT heads, owing to senior management's growing distrust of the real value technology brings to the business, together with its constantly rising cost.

In fact, Orizon points out, the trend of companies migrating to an environment as complex as the cloud has led to "unexpected" cost overruns of around 45% in technology budgets and, paradoxically, to results rated as negative, since nearly 80% of organisations have not reached the objectives they set. Likewise, according to Funcas, the top 10 banks in Spain have doubled their technology spending: it was around €2,360 million in 2015, and the trend suggests it could exceed €6,600 million in 2025.

40% of companies are already turning to performance

According to Orizon's report, 40% of companies are starting to bring into their teams professionals who, under different titles such as "special projects manager" or "IT projects for IT manager", focus precisely on trying to reduce costs. To do so, these new professionals turn to "performance" to bring them under control: making sure that the infrastructure and applications that make up the business's technology work correctly, meet the objectives they were built for on time and in full, whether in-house or through suppliers, and at the expected cost.

According to Orizon, although creating this role is a fundamental step towards containing cost overruns, nearly 85% of these new cost managers cite the excessive complexity and volatility of systems as the main obstacle to achieving their objectives. In this respect, Orizon believes that success necessarily depends on tools equipped with big data, advanced analytics and AI, able to detect and analyse failures, find their root causes and correct them along the whole technology chain, which is increasingly complex and involves third parties.

Beyond that, Orizon notes, organisations can only be sure their costs are as tight as possible if those tools give a single view of business technology: of the performance of both the machines (hardware) and the applications (software), two environments that have been separate practically since the beginning of business computing, with hardly any relationship within organisations' technology departments. In fact, according to Orizon's report, fewer than 10% of companies currently say they have this unified view when checking the overall performance of their technology. Today, Infrastructure and Operations absorbs between 15% and 25% of large companies' IT spending, and Development between 30% and 40%.

Leading technology for a new role

Orizon, the Spanish company specialising in ensuring the continuous performance of large companies' technology infrastructure and applications, believes this compartmentalised approach is the fundamental reason for cost overruns, together with the relentless growth in technology complexity and, as a result, a growing dependence on third-party suppliers "for whom their own business weighs more than achieving the best performance of the systems they provide and develop for their customers", says Ángel Pineda, CEO of Orizon. "This lack of dialogue," Pineda says, "means that software developed for a business activity is tested and shown to work correctly, but nobody is sure how it will really behave once it is released on the infrastructure. As a result," he adds, "when problems occur, the time needed to find their source multiplies exponentially, or the infrastructure is oversized to make sure it works, which sends costs absurdly high."

According to the company, this single, global view of technology requires the new CPOs (Chief Performance Officers) to have robust tools and methodologies capable of providing it. Orizon currently offers the only platform of its kind in the market (BOA), developed in-house, together with its own methodology (DevPerOps), to monitor the operation of large companies' applications without interruption, detect problems and solve them, optimising continuously.

BOA can also correlate financial variables (revenue) and business operating variables (number of customers, transactions…) with truly representative IT performance KPIs such as costs, response times, availability and compliance with Service Level Agreements (SLAs), among others.

About Orizon

Orizon provides technology performance solutions that bring value to IBEX 35 companies and large companies leading their sectors, identifying and solving software problems to ensure maximum levels of availability, performance and efficiency. The cost savings and faster applications are significant for the organisations Orizon works with, making it a key ally of senior management. A pioneer in applying artificial intelligence to improve business in IT production environments, Orizon makes it possible to monitor, detect and resolve inefficiencies in 100% of technology elements. Its R&D&I and its technology, unique in the market, are recognised by official Spanish institutions and by the European Commission.

For more information:
Eugenio Sanz
eugenio@bdicomunica.com
Lola Sánchez
lola@bdicomunica.com
91 360 46 10