Digital transformation pressures are changing the way companies are investing in software, with IT departments placing a greater emphasis on customisation.

Australian business software investments are shifting towards customisation and development as businesses evolve, according to new research by emerging technology analyst firm Telsyte.

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The Telsyte Enterprise Applications and Software Study 2017 investigates how software is procured and developed in Australian organisations, including the new challenges posed by large-scale IT transformation that is occurring in most organisations.

Telsyte’s research indicates enterprise software budgets are rising across the board, however, more organisations are turning their focus to developing software for better integration, customisation and digital product development.

Only one in five IT and business leaders surveyed by Telsyte indicated they had no plans on developing software to satisfy business needs.

“Developing new products and services is now a top priority for CIOs and the ability to develop applications faster and better integrate disparate data sources has become critical,” Telsyte Managing Director Foad Fadaghi said.

Telsyte found almost four in five enterprises are customising, or considering customising SaaS applications, creating an opportunity for better cloud integration, fit-for-purpose apps, mobility and better user interfaces.

The high rate of corporate software development, combined with the ease at which development can occur in the cloud, is creating a healthy appetite for PaaS with approximately 70 per cent of Australian enterprises already using PaaS, or planning to adopt it.

Telsyte research indicates most (85 per cent) organisations are looking to increase their PaaS investments in 2017 and beyond.

Similarly, 80 per cent of IT leaders interviewed plan to increase their SaaS budget over the next 12 months with a massive opportunity for vendors to modernise legacy systems.

Most (63 per cent) CIOs report a need for social CRM features to support digital programs, however, only one third claim they have social features in their CRM.

Despite the arrival of machine learning and AI functionality, most CIOs still consider core operational features, upfront costs and return on investment to be the main factors influencing the procurement of enterprise applications.

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