CIOs Losing Control of Information, Communications Tech Spending
Three-quarters of of CIOs already believe that the IT function in their organization is services focused rather than technically focused.Chief information officers (CIOs) are becoming increasingly aware that line-of-business executives wield greater influence over IT purchasing decisions and are actively re-shaping IT departments as internal service providers in response, according to a report from managed services provider Logicalis. More than half of CIOs agree that, by 2016, 80 percent of IT budgets will be based on providing service integration for a broad portfolio of internally and externally sourced IT and business services, while just over three-fourths (76 percent) of CIOs already believe that the IT function in their organization is services focused rather than technically focused. Nearly half of CIOs today admit they want the majority (50 percent or more) of their IT services to be provided or managed by external service providers, including those providing cloud services like infrastructure-as-a-service (IaaS) and software-as-a-service (SaaS). "CIOs have constantly struggled to be seen as a strategic part of one’s business, often viewed as a cost center. As we came out of the recession the last couple of years, new business dynamics have put a lot of pressure on IT to be more innovative, Mike Martin, senior vice president for solutions and services at Logicalis US," told eWeek. "Mobile and social networking are key drivers to connect customers, suppliers, partners, and employees. Big Data is driving new business models and routes to market. Cloud computing is enabling business to easily consume these new solutions."
Martin explained that as a result, CIOs have lost control as they deal with the traditional IT for business delivery model and are unable to deliver these strategic business needs fast enough.