The impact of IT spending for staff development on performance of the firm

As the use of information technology continues to grow in business, coupled with ever-escalating expenditures and increasing interest in outsourcing, IT professionals are under increasing scrutiny to demonstrate an impact on business performance. However, due to the fact that information technology components are widely available, it is unlikely they are the basis for a competitive edge in business. Rather the benefits come from the manner in which IT is deployed, which in turn stem from the capabilities of the staff members of the IT group. Thus, one might ponder whether firms that invest effectively in the development of information technology's human resource enjoy better performance than those who do nor. An analysis was performed of the three-year IT spending of a sample of Fortune 500/Service 500 firms. The results of the study show there is a highly significant and positive relation between spending for development of the IT staff and performance of the firm, measured by corporate revenue. These findings suggest a series of questions meriting additional research.