Skip to main content Skip to Footer

LATEST THINKING


Creating a global IT operating model that fosters agility and innovation

Overview

 

Many IT organizations have morphed from discrete, project-oriented technology providers to multi-source service centers scattered around the globe.

Increasingly, IT operations are characterized by a smaller but more dispersed workforce, complemented by a variety of partners who deliver a variety of capabilities.

As businesses centralize governance and control to support global operations, new demands have emerged for Chief Information Officers.

Take note, CIOs: To effectively manage this complex ecosystem, you need to reconsider its core elements.

New demands have emerged for CIOs. To effectively manage a complex ecosystem, they need to reconsider its core elements.

Analysis

The very sourcing models that helped CIOs improve IT efficiency and cost structure may now be hampering the flexibility needed to deliver cloud-based technology and other emerging services.

An ability to derive value from sourcing relationships is one of the key differentiators between high-performance businesses and those simply trying to keep up.

CIOs need to turn their attention from cost-cutting to growth, which puts a premium on agility and innovation. How can IT organizations achieve excellence in these areas?

How can IT organizations achieve excellence in these areas?

Managing an increasingly complex, global shared services model—characterized by the integration of historically independent business functions—requires a rethinking of everything.

Fortunately, CIOs have many tools available to help improve IT flexibility and support business growth.

Recommendations

Increasing agility while balancing efficiency with innovation requires changes to four key elements:

  • Run IT as a business—As IT workforce competencies evolve, CIOs must move from managing a technology organization to managing a business.

  • Evolve IT architecture—High performers map out transition plans that take into account short- and medium-term needs and then match that with the right architecture components.

  • Build sourcing model flexibility—Improve cost efficiencies and use external capabilities more effectively. This requires people as skilled at managing relationships as they are at writing code.

  • Adapt the IT workforce—Our research shows that high-performers are seven times more likely than other IT organizations to have invested in new technology skills development.