 |
| Source: Logicalis infographic. |
CIOs increasingly accept that line of business colleagues will excerpt greater influence over IT purchasing decisions and are actively seeking to reshape IT departments as ‘internal service providers’, the second annual Optimal Services Study from IT and communications solution integrator Logicalis has found.
In the survey*, CIOs say that the balance of power in ICT spending has shifted. The trend, also called ‘Shadow IT’, is centrestage:
· 57% of CIOs think line of business (LOB) colleagues have gained more power over the last 12 months
· More than a quarter (28%) admit that LOB colleagues already hold the balance of power in ICT decision-making, taking 50% of decisions or more
· 64% believe the trend will continue over the next three to five years (compared with 44% a year ago)
· Two thirds (66%) report that the IT department is responsible for managing LOB-purchased technologies and services.
In response, CIOs are seeking to embrace a new, infrastructure and service management-focused role.
James Tay, Chief Executive Officer, Logicalis Asia, said: “The survey bears out what we see on the ground in many businesses, that helping organisations to quickly respond to on-going business transformation requirements is now the CIO’s top priority. Most importantly, the survey enables us to take a new look at the IT value decision making chain, and I think we can now position Shadow IT as a term used to describe the first evolution of line of business influence. As more businesses are taking the prime role in defining IT requirements and outcomes, we cannot continue to describe this new dynamic as something subversive, but as the new way organisations will define and procure their IT needs.
“Customers will require us to help them become even more service defined — we will not only have to help the CIO transition their organisations, but crucially we have to better capture and deliver this multi-sourced business driven agenda, and demonstrate how new technologies or services translate into tangible business improvements and outcomes.”
CIOs recognise, however, that there is much work to do in order to deliver a service-defined transformation. They need to:
Become experts in service integration – LOBs will now want access to a growing number of market offerings delivering a transformational line of business applications. This will make the selection, integration, governance and management of ‘as a service’ as important as maintaining in-house technologies.
Transform the IT skills base – They have to recruit specialists with broader, business IT orientated skills, and actively reduce the level of technology their teams maintain in-house. At the same time they must succeed where they have so far failed, in refocusing the CIO role on strategic activities.
Some key findings:
· 57% agree that, by 2016, 80% of IT budgets will be based on providing service integration for a broad portfolio of internally and externally sources IT and business services
· 76% already consider that the IT function in their organisation is services focused rather than technically focused
· Four in ten (41%) expect to rename the IT department in the next two years, to reflect a service-management role.
· 34% of CIOs cite technical skills as the top priority when recruiting IT staff – the remaining two-thirds look first at business skills like communication, service management and business analysis.
· 65% are prepared to pay more for business-oriented IT professionals. A quarter expect to pay 5% to 10% more, and a further 22% expect to pay between 10% and 20% more.
· Almost half (47%) want the majority (50% or more) of their IT services to be provided or managed by external service providers, including cloud. This encompasses infrastructure as a service/platform as a service (IaaS/PaaS) and software as a service (SaaS). A further 61% want a software-defined enterprise of some kind within 36 months.
Chris Barnard, Associate Vice President, IDC's EMEA Telecommunication and Networking Group, said: “The survey confirms major trends IDC observes within the industry with the shift to a new technology platform - the Third Platform, which is built on mobility, cloud, big data analytics, and social technologies. This creates challenges to the CIO and IT organisations as they struggle to balance strategic and operational choices.
“With the IT function at the heart of business growth and innovation as we move to the Third Platform, it is clear that the CIO and IT organisation will have to adjust as business outcomes become the key metric of ICT projects. Discussions need to move from being technology focussed towards supporting business goals by acting as a services broker or provider.
“An external partner, such as Logicalis, should understand the key role of the network and provide complete enterprise platform lifecycle services, with a keen understanding of the IT estate and future business/technology evolution.”
Click here to download the full Optimal Services Report and view the full infographic here.
*All figures are from a survey of 177 CIOs and IT directors from mid-market organisations across 24 countries spanning Europe, North America, Latin America and Asia-Pacific.
In the survey*, CIOs say that the balance of power in ICT spending has shifted. The trend, also called ‘Shadow IT’, is centrestage:
· 57% of CIOs think line of business (LOB) colleagues have gained more power over the last 12 months
· More than a quarter (28%) admit that LOB colleagues already hold the balance of power in ICT decision-making, taking 50% of decisions or more
· 64% believe the trend will continue over the next three to five years (compared with 44% a year ago)
· Two thirds (66%) report that the IT department is responsible for managing LOB-purchased technologies and services.
In response, CIOs are seeking to embrace a new, infrastructure and service management-focused role.
James Tay, Chief Executive Officer, Logicalis Asia, said: “The survey bears out what we see on the ground in many businesses, that helping organisations to quickly respond to on-going business transformation requirements is now the CIO’s top priority. Most importantly, the survey enables us to take a new look at the IT value decision making chain, and I think we can now position Shadow IT as a term used to describe the first evolution of line of business influence. As more businesses are taking the prime role in defining IT requirements and outcomes, we cannot continue to describe this new dynamic as something subversive, but as the new way organisations will define and procure their IT needs.
“Customers will require us to help them become even more service defined — we will not only have to help the CIO transition their organisations, but crucially we have to better capture and deliver this multi-sourced business driven agenda, and demonstrate how new technologies or services translate into tangible business improvements and outcomes.”
CIOs recognise, however, that there is much work to do in order to deliver a service-defined transformation. They need to:
Become experts in service integration – LOBs will now want access to a growing number of market offerings delivering a transformational line of business applications. This will make the selection, integration, governance and management of ‘as a service’ as important as maintaining in-house technologies.
Transform the IT skills base – They have to recruit specialists with broader, business IT orientated skills, and actively reduce the level of technology their teams maintain in-house. At the same time they must succeed where they have so far failed, in refocusing the CIO role on strategic activities.
Some key findings:
· 57% agree that, by 2016, 80% of IT budgets will be based on providing service integration for a broad portfolio of internally and externally sources IT and business services
· 76% already consider that the IT function in their organisation is services focused rather than technically focused
· Four in ten (41%) expect to rename the IT department in the next two years, to reflect a service-management role.
· 34% of CIOs cite technical skills as the top priority when recruiting IT staff – the remaining two-thirds look first at business skills like communication, service management and business analysis.
· 65% are prepared to pay more for business-oriented IT professionals. A quarter expect to pay 5% to 10% more, and a further 22% expect to pay between 10% and 20% more.
· Almost half (47%) want the majority (50% or more) of their IT services to be provided or managed by external service providers, including cloud. This encompasses infrastructure as a service/platform as a service (IaaS/PaaS) and software as a service (SaaS). A further 61% want a software-defined enterprise of some kind within 36 months.
Chris Barnard, Associate Vice President, IDC's EMEA Telecommunication and Networking Group, said: “The survey confirms major trends IDC observes within the industry with the shift to a new technology platform - the Third Platform, which is built on mobility, cloud, big data analytics, and social technologies. This creates challenges to the CIO and IT organisations as they struggle to balance strategic and operational choices.
“With the IT function at the heart of business growth and innovation as we move to the Third Platform, it is clear that the CIO and IT organisation will have to adjust as business outcomes become the key metric of ICT projects. Discussions need to move from being technology focussed towards supporting business goals by acting as a services broker or provider.
“An external partner, such as Logicalis, should understand the key role of the network and provide complete enterprise platform lifecycle services, with a keen understanding of the IT estate and future business/technology evolution.”
Click here to download the full Optimal Services Report and view the full infographic here.
*All figures are from a survey of 177 CIOs and IT directors from mid-market organisations across 24 countries spanning Europe, North America, Latin America and Asia-Pacific.
No comments:
Post a Comment