Growing IT Delivery Gap Is Impacting
February 16, 2017
on a survey of 951 IT decision makers (ITDMs) globally, a report reveals
a growing IT delivery gap that is slowing down the majority of the
businesses surveyed and directly putting revenue at risk. With a
convergence of technologies -- including mobile, SaaS, cloud, big data
and IoT -- pushing business users to move at much faster speeds, IT
today must be able to embrace change and securely integrate new
technologies at a rapid pace. However, with a relatively fixed set of
resources and a constrained capacity to deliver on new projects, IT is
falling increasingly behind and holding back the business.
To counter the resulting IT delivery gap and address connectivity
challenges, IT is increasingly turning to APIs to integrate new
technologies with existing systems, enable business users to self-serve
IT and unlock data silos. APIs serve as the digital glue that allow
applications to securely talk to each other and exchange data,
regardless of format or source.
Among the key results:
The IT delivery gap is widening
Despite the high number of ITDMs that are undertaking or plan to
undertake digital transformation initiatives (94 percent), only half
said they were able to deliver all projects asked of them last year. The
biggest factors responsible for slowing down IT's delivery include a
growing misalignment with business teams, under-resourcing, time
constraints and the sheer number of applications they need to integrate.
- 69 percent of ITDMs say there
is a disparity between what business executives are expecting will
be achieved from a digital initiative. The disparity between IT and
the business is growing year-over-year, with 45 percent of ITDMs in
2016 saying it was responsible for slowing the business down.
- 51 percent of ITDMs say they
are under-resourced, and most ITDMs will not get significantly more
resources in 2017: 68 percent say they will see a budget increase of
less than 10 percent, will see their budgets stay the same or will
see their budgets decrease. Under-resourcing is a major problem for
IT, with only 32 percent in 2016 indicating it was responsible for
slowing the business down.
- 41 percent of ITDMs say a
major obstacle to completing digital transformation initiatives is
lack of time. 35 percent of ITDMs say they are integrating 100 or
more applications this year, compared to 10 percent in 2016,
pointing to the growing complexity involved for IT when integrating
new applications, data sources and devices.
The universal benefits of APIs
To close the IT delivery gap and speed up the pace of
innovation, a growing number
of ITDMs are implementing APIs to integrate new software with existing
systems and applications (60 percent), to increase speed (57 percent),
and to unlock existing data silos (54 percent). Almost universally,
ITDMs are already seeing positive business outcomes from implementing
- 90 percent of ITDMs currently
have or are launching an API strategy by the end of 2017. Of the
ITDMs that currently have an API strategy, a whopping 94 percent
credit it with allowing them to deliver products and services
- The top business benefits
ITDMs realized from their API strategies are increased productivity
(64 percent), increased innovation (62 percent), increased employee
engagement and collaboration (47 percent) and revenue growth as a
direct result (44 percent).
- Nearly half of ITDMs say
their companies generate approximately 1-10 million dollars from
APIs; 40 percent say their companies generate 25-75 percent of their
revenue from APIs; 19 percent of ITDMs say that a majority of their
company's total revenue is generated through APIs and activities
directly related to API implementation.
Shadow IT poses security risks
The IT delivery gap is causing many business users to take
matters into their own hands by purchasing technology tools outside of
IT -- often SaaS applications. This shadow IT puts mission-critical
customer and product data at risk. Despite over half of ITDMs saying
they are "extremely" or "very" confident they can prevent or withstand
security threats, the emergence of shadow IT and the continued movement
to the cloud is set to pose unforeseen threats for businesses.
- More than half of ITDMs say
their companies have adopted more than 20 applications outside of
the IT department, and nearly half of ITDMs say more than 21 percent
of the tech budget comes from outside IT.
- 79 percent of ITDMs say cloud
computing, the highest ranked technology, is "very" or "extremely"
important to the future of their businesses; 75 percent say cloud
applications are "very" or "extremely" important IT priorities in
- ITDMs say they are spending
more money on cloud applications (nearly 14 percent) than security
(just over 12 percent).
IT delivery gap is one of the biggest threats to businesses today, as
speed and real-time access now helps determine a business' success,"
said Ross Mason, founder and vice president of product strategy,
MuleSoft. "In order to deliver products faster to market, establish new
global presences and change existing processes to meet market demands,
we're seeing our customers increasingly invest in and benefit from an
API-led approach to connectivity. Driving an internal API economy allows
IT to securely open up legacy systems and free business-critical data
that the wider organization relies on to achieve business outcomes
faster than competition. By removing itself as a bottleneck and creating
reusable assets with APIs, IT can empower the entire organization in a
secure environment while greatly diminishing the daunting IT delivery