and M&A Tax practices. “The carried interest proposal
appears to focus the legislation in a manner more targeted
at investment funds and may continue to have significant tax
implications. The alternative investment industry will likely be
actively participating in the debate and discussions around
FINANCE AND IT: VALUE COMES WITH HARMONY
By John Alarcon and Jack Musgrove | November 10, 2010
The recent recession touched all departments within companies, and information technology was not immune.
While many IT departments endured drastic spending cuts,
2010 is expected to end as a rebound year for IT. According
to Gartner Inc., an IT research firm, worldwide enterprise
IT spending dropped 6. 9 percent in 2009. The computing
hardware sector was the most affected, with a drop of 16. 5
percent. In 2010, IT spending is expected to bounce back
with a projected growth rate of 3. 9 percent over 2009.
Despite the projected rebound of IT spending, the time has
come for finance and IT professionals to work more closely
The two disciplines can improve decision-making by building
better business cases and by measuring and demonstrating
business results derived from IT spending. The emphasis
should be on increasing the value derived from IT and
establishing processes to measure it.
What Is the Value of IT?
The value of IT, in the corporate sense, is achieving business
benefits through the effective execution of IT management.
Business benefits could range from improving company
profitability to creating a competitive advantage. Companies
that can derive the most value from their IT infrastructure are
more profitable and grow faster than their competitors.