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Top CIOs Shifting Focus on Value and Innovation

by: Admin

Thursday, June 24, 2010 |

CIOs are looking at outsourcing and offshoring

A new survey has revealed that today’s CIOs are looking at outsourcing and offshoring to pack a bigger punch with money spent down to the last penny. However, the survey also indicates they also want to focus on using IT to transform the business through innovation and productivity.

The report, entitled “From cost to value: 2010 Global Survey on the CIO Agenda”, was published by advisory firm KMPG as part of the 2010 World Congress on IT in the Netherlands. The survey was based on KPMG’s technology data and was distributed to 4500 CIOs around the world.

As well as probing into possible offshoring approaches of high-profile CIOs, the survey categorized eight priorities for them to rate: IT value, the CIO profile, the value of people, process improvement, risk and compliance, sourcing, collaboration, and optimism.

The survey announced that “organizations wishing to create sustainable value need to get a grip on the way all information is produced, collected, and used, and they need to use IT to respond rapidly to the changing market and society.”

The survey also deduced that: “To a large extent, the daily focus of any CIO depends on the sector in which he or she operates. CIOs in the financial sector are comparatively more involved with daily operations, while CIOs in the manufacturing sector are looking more at ways to innovate and transform with the help of IT.”

The survey showed that 56% of respondents said cost optimization should always be a part of the organization’s IT strategy as it is a competitive weapon.

Given the strong growth of online services in the offshoring landscape, CIOs expect use of collaboration tooling to increase significantly over the next five years. Cloud computing is receiving a marginal 72% of CIOs, claiming this practice was a good way of outsourcing IT functionality.

 The concepts raised in the survey could prove substantial in the global offshoring industry as Ian Hancock, KPMG’s national IT advisory in Australia, claims. After all, about 16 CIOs who took the survey represent the top 200 companies in the world.

According to Hancock, staffing, sourcing, compliance, and cloud computing are the top priorities of CIOs locally.

“Retaining people is a challenge for everyone and my view is to retain good people you need to be able to give them ways to develop new capabilities,” Hancock stated. “The message in the report is about innovation and the challenge for CIOs is to enable a career path.”

“The real challenge of previous outsourcing was predicated on cost, but CIOs lost control of the environment they need to create value in. How do I continue to create value in environment that I’ve outsourced to a third party?”

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