IT spend, which is capitalized, is divided into two broad categories: Infrastructure (mandatory) and business initiatives (discretionary), with several sub categories, as shown in figure 2:

• This type of IT investments is managed directly by the IT department with limited business involvement. Typically, it is difficult to justify this spend on a normal "Return on Investment" basis. Thus, instead of making unrealistic business cases, the IT team develops an annual plan which is approved during the budget process. Once approved it is up the IT team to manage this type of investment.

• This type of spend is based on business priorities. During the budget cycle a number of meetings between the business and the IT team take place. A "wish" list of projects is drawn up and capital allocated. The amount in the budget will not cover all projects. So during the year, projects will be launched inline with business priorities and once a business case is developed.

The business IT initiatives are managed as a portfolio of projects and there is no equal allocation between the countries. Instead, IT investments are channeled to the countries and business functions where the largest return can be realized.