Tensions Between IT and Business Leadership Force New Approach to Delivering Technology

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Even with these changes, time spent managing the same old legacy systems continues to distract the agenda for IT staff -- 36 percent of IT staff's time is spent managing and maintaining legacy systems. This leads to a situation known as "two-speed IT" where IT staff must balance the support of legacy systems with the need to continuously innovate in order to stay ahead of the competition.

"The tilting balance of control over technology decisions and budget has created a real tension between IT and the business and requires IT to rethink its approach, learn new skills and grow its influence," said Mick Slattery, Avanade executive vice president, Global Service Lines. "Forward-looking companies are positioning their IT staff as business advisors and see IT contributing more to accomplishing objectives, and driving positive business results than ever before."

Avanade, a global business technology solutions and managed services provider, recently released results from a large-scale global survey on the changing role of IT. The research shows technology budgets and decision-making migrating away from IT departments, and IT taking on new roles in the enterprise. Thirty-seven percent of technology spending now happens outside of IT, because the vast majority of business leaders (79 percent of C-level executives) believe they can make better and faster decisions without the involvement of IT.

With these shifting budgets and loss of control, the global study of 1,003 business and IT leaders shows a new "services broker" model for IT taking hold. In this model, IT staff consult with departments across the business to better understand their technology needs and objectives, and source internal or external IT services or partners to meet these demands. More than one-third (35 percent) of companies' IT departments act primarily as services brokers today. Avanade's research shows that among companies whose IT departments are structured this way, 58 percent report they will expand the role of IT services brokers in the next 12 months. Additionally, 68 percent of companies report their IT department is contributing more to accomplishing business objectives than they did three years ago.


Related Topics : A Big Market for Big Data Jobs, Midmarket CIO, IT Management Automation, SharePoint, Technology Markets

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