When IT Just Runs - But Never Builds: A Silent Crisis in DACH

If your IT team is working harder than ever to stay in the same place, you're not alone—but you might be in trouble.

Across the DACH region, mid-sized manufacturing firms are stuck in a loop: the majority of their IT budgets go to simply keeping the lights on. Legacy systems, spiralling maintenance costs, regulatory burdens, and expensive local support leave little room for anything else. The result? A growing innovation deficit that threatens long-term competitiveness—and morale.

The Run Trap: Comfortable, Familiar… and Slowly Suffocating

Industry data makes the imbalance stark. On average, over 50% of IT budgets in manufacturing are allocated to maintenance, often significantly more. Compare that to more digitally agile sectors, such as finance or retail, which hover closer to 33%. In many KMU companies, ERP systems deployed in the early 2000s are still operational, heavily patched, and deeply integrated into operations.

“They work, so we keep them,” goes the logic. However, over time, the cost of supporting those systems balloons, encompassing manual patches, expired vendor support, complex integrations, and the slow accumulation of technical debt. By the time you notice the drag, it’s become systemic.

This isn’t just a financial burden. It leads to frustrated IT staff spending their days firefighting rather than building. Ambitious IT projects are perpetually deferred. And every euro spent maintaining yesterday’s technology can’t fund tomorrow’s opportunity.

Budget Growth ≠ Innovation

Yes, IT budgets have grown post-pandemic. However, inflation, rising labour costs, and the high cost of cloud consumption have largely offset that increase. Gartner forecasts 9% cost growth for IT services in 2025. Meanwhile, critical talent is harder to find—and even harder to keep when all they do is maintain aging infrastructure.

In other words, companies are spending more just to stay where they are.

Why It’s Hard to Change

It’s not that CIOs don’t want to innovate—they do. But between regulatory compliance (think ISO, GDPR, safety validation), high labour costs, and ingrained “don’t fix what isn’t broken” mindsets, many feel boxed in. And when push comes to shove, CFOs are often more comfortable funding "Run" because it's predictable and seemingly safe.

But is it?

The Cost of Inaction

The longer companies defer innovation, the worse the consequences become:

• Systems age out of support, forcing expensive emergency replacements.
• Inefficiencies accumulate, dragging down productivity.
• Customers and employees drift, frustrated by outdated tools and processes.
• Talent leaves, drawn to places where IT teams build, not babysit.

Worse still, the trap becomes self-reinforcing. As systems age, they become more expensive to maintain, leaving even less budget for innovation. Welcome to the vicious cycle.

Breaking the Cycle

The good news? There is a way out—but it’s not a magic switch. It’s a shift in mindset and method.

• Start by measuring the problem. If you’re not tracking your run vs. build split, start today. What gets measured can be managed.
• Adopt zero-based thinking. Build your IT budget from scratch each year. Question every line item. Prioritise value, not inertia.
• Modernise in phases. You don’t need to rip out your legacy stack overnight. Start with the most expensive-to-maintain systems and phase in replacements that offer a clear return on investment (ROI).
• Automate and streamline. Routine patching, backups, and monitoring? These should be automated where possible, freeing up your team for high-value work.
• Build cultural momentum. Frame innovation,  not as “risky” but as necessary for survival. Show leadership what’s at stake—and what’s possible.

This Isn’t Optional

The DACH manufacturing sector is already falling behind in digital competitiveness. A KfW study ranked Germany 23rd globally in IT investment. The message is clear: firms that don’t act now will find it even harder—and more expensive—to catch up later.

It’s not about chasing the latest tech trend. It’s about protecting your future relevance.

💡 Takeaway

If you're spending more than half your IT budget just to "run the business," you're not running a modern IT function—you're running a museum. Start tracking. Start questioning. And start building again.