Why the CIO landscape remains a challenge with digital disruption
The environment for CIOs remains a challenging one in the face of digital disruption. A new report from Logicalis argues that CIOs have less control over IT spending than ever before, and are increasingly looking at partner-led services as a result.
The study, the IT solutions provider’s 2016 global CIO survey which polled more than 700 CIOs worldwide, found that, for two in five respondents, they make less than half of the decisions on IT spending.
73% of firms surveyed are now digitally enabled to some extent. 7% of businesses are furthest ahead of the curve – the study calls them ‘digitally enabled innovators’ or ‘digital disruptors’ – while 22% are early adopters. Comparatively, only 5% of respondents are at the lowest category of ‘laggards’; businesses that are not digitally enabled at all.
More than four in five (83%) CIOs say they have what would essentially be a ‘shadow IT department’ in their organisation – line of business is increasingly employing IT in a role to support business function-specific software, applications and cloud services. One in five (22%) say they liaise with the shadow IT department on a daily basis, with 41% doing so at least once a week.
Not surprisingly – when is it not the case? – security was identified as by some distance the biggest challenge for CIOs rolling out cloud services. More than three quarters (78%) cited security ahead of data sovereignty (47%) and local data regulations (37%).
When it comes to seeking additional help, a quarter (24%) of CIOs polled say they outsource the majority of their IT, while the number of CIOs who outsource either none or a minimal amount (one tenth) of their IT has fallen to 9% and 19%, from 13% and 26% this time last year.
“As digital innovation accelerates, the winners will create new customer experiences, make faster and better decisions through smarter collaboration, and create new digital business models and revenue streams, securely,” said Mark Rogers, Logicalis Group CEO in a statement. “CIOs and IT leaders can play a leading role in enabling that innovation, drawing on skills from insightful partners to help shape their businesses and lead their sectors through the application of digital technologies.”
Naturally, as a manged services provider, Logicalis is putting itself forward as one of those partners through its research. Yet the figures make for interesting reading when compared against a study by Gartner earlier this month, which argued that while enterprise IT budget growth was slowing down, the proportion of spend on digitisation was increasing.
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