“We’re Not in IT Anymore”
May 12 2010 - 8:00AM
Business Wire
As Dorothy said to Toto after the tornado transported them to
the unfamiliar Land of Oz, “We’re not in Kansas anymore.” CIOs are
anticipated to have a similar sentiment in five years about the
current state of their IT departments based on the findings of a
recent analysis from the Corporate Executive Board (CEB) (NASDAQ:
EXBD).
After interviewing and surveying hundreds of IT and business
leaders regarding business, social and technology trends across the
next five years, CEB, a leading research and advisory services
company, predicts that three out of every four IT roles will either
migrate to business services, evolve into business roles, or will
be externalized by 2015. CIOs will face the choice of expanding to
lead a business shared service group or seeing their position
shrink to managing technology delivery.
“The Corporate Executive Board has been tracking the
transformation of the Corporate IT function for more than a decade.
According to the results of our most recent survey, we are
embarking on one of the most significant changes in Corporate IT in
years,” said Shvetank Shah, Executive Director of CEB’s IT
Practice. “As one of our leading business unit GM clients put it,
information has become too important to be left to only the IT
function.”
CEB identified four emerging shifts in IT’s role and value that
will contribute to the transformation of the corporate IT
department by 2015:
- Information Over Process: Up to
80 percent of IT enablement opportunities in the business areas
that drive growth, including marketing, sales, and customer
service, will relate to business intelligence, collaboration, or
the customer interface, not around enablement of business
processes.
- IT Embedded in Business
Services: Technology will be consumed as part of business services
as the IT function merges into an integrated business shared
services group alongside other corporate functions.
- Externalized Service Delivery:
Cloud computing will enable externalization of applications
development, infrastructure operations, and back-office processes
by up to 80 percent, gradually eroding the “factory” side of the IT
function shifting function more to technology brokers.
- Greater Business Partner
Responsibility: With business leaders and end users having a
greater knowledge and confidence with technology, business partners
will have a greater role in areas where the value of
differentiation outweighs the need for integration. This represents
a shift in responsibility for technology decision making.
“CEB’s analysis found that many of these changes are currently
underway and will likely be rapid, permanent, and radical,” said
Shah. “Leading CIOs have embraced these transformations and are
devoting the time, energy, and resources to actively shape the
transition. We’re working closely with them to help them prepare
for future events.”
For more information about CEB’s “The Future of IT” survey,
Shvetank Shah is available to discuss the survey findings,
methodology, and other IT trends CEB has identified through its CIO
network. An executive summary of “The Future of IT” can be
downloaded at http://www.executiveboard.com/it/.
About The Corporate Executive Board
The Corporate Executive Board drives faster, more effective
decision-making among the world's leading executives and business
professionals. As the premier, network-based knowledge resource, it
provides them with the authoritative and timely guidance needed to
excel in their roles, take decisive action and improve company
performance. Powered by an executive network that spans over 50
countries and represents more than 85% of the world's Fortune 500
companies, the Corporate Executive Board offers the unique research
insights along with an integrated suite of exclusive tools and
resources that enable the world's most successful organizations to
deliver superior business outcomes. For more information,
visit www.exbd.com.
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