Many mid size to large companies have indicated increasing their spending on business process management (BPM),with the initial budget for this process in this year between USD 50,000-USD 200,000,says a study.
The global survey conducted by market research firm Gartner across 14 countries included 600 mid and small size companies in the third quarter of 2010.
The survey found that respondents were optimistic about spending plans on this IT-enabled procedure,with 54 percent planning to increase spending by 5 percent or more,and almost 20 percent planning to raise it by more than 10 percent during 2011.
“Many of these budget increases are driven by the fact that BPM is focused on improving business outcomes and explicitly meets the objectives of many organisations’ return-to-growth strategies,” Teresa Jones,principal research analyst at Gartner said in a statement.
“However,there is a mismatch between what users think they will achieve from BPM and what they actually achieve,” Jones added.
In Asia Pacific,respondents expected strong increase in BPM spending,with 25 percent of respondents indicating that spending growth was likely to exceed 10 percent.
“Many countries in Asia Pacific are exhibiting strong economic growth,which correlates well with increased IT spending generally,” Jones said.
In addition,BPM project funding comes not from an IT budget but from the line of business budget in 66 percent of cases. Also,because BPM is focused on business outcomes,many business units are funding it more readily than for IT-specific projects.
The survey found that most common initial investment was low,between USD 100,000 and USD 200,000,compared to many BPM suites implementation projects.
Asia Pacific respondents tended to have even lower initial project values,with nearly 35 percent spending between USD 50,000 and USD 100,000.
These findings reflect the lower prices usually charged by software vendors in Asia Pacific,as well as lower cost of external services, Gartner said.


