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CIOs must act less like service providers and more like business partners

CIOs must make the case for IT loud and clear

In tough times, it is essential for IT leaders to be able to clearly articulate the advantages of technology investment

Written by Tom Young

The recession offers a real opportunity to raise the profile of IT, according to some of the UK’s leading chief information officers (CIOs). But to do so, IT leaders must provide absolute clarity of vision on how they intend to align IT to support their business in the downturn, they say.

The recession has changed the way that businesses think about IT, with only six per cent of CIOs saying they had not changed any of their activities or plans as a result, according to research by recruitment consultancy Harvey Nash.

Being communicative with staff and the board, leading by example, and being transparent in strategy were all considered to be vital tools for a CIO running an IT department in tough times, the survey found.

“The current crisis offers us a chance to develop our brand. Out of it will be born the next generation of IT leaders,” said Deepak Singh, CIO at HM Revenue & Customs.

And IT leaders should be more proactive to drive change within the business, rather than simply responding to events, Singh told delegates at the Harvey Nash IT leadership event last month.

“We’re often more comfortable managing the IT factory than we are business change,” he said. “We want to be treated like partners but we behave like suppliers.”

But driving change does not mean avoiding difficult issues such as cost cutting, and all those surveyed agreed that a focus on saving cash is always going to be key when times are hard.

“If you’re not thinking about cost savings you’re not in the real world,” said Colin Cobain, former CIO at Tesco. “Focus on why you are doing things, not whether they are innovative or not. A lot of people spend a lot of money on toys. Don’t be one of them.”

But a focus on cost saving does not have to be a barrier to innovation, according to Jonathan Cooper-Bagnell, a partner at PA Consulting.

“It’s not about technology and widgets. Think about the impact of the crisis on the business and how you can innovate to solve those problems,” he said.

The survey suggested that 86 per cent of CIOs are still being asked to innovate in the downturn, although only 14 per cent felt they were being successful, with a quarter saying they faced serious challenges when trying to innovate.

And despite pressure on IT budgets, the percentage spent on innovation remains fairly robust, with 35 per cent of those polled investing more than eight per cent of their IT outlay on innovation compared to 42 per cent of respondents in 2008.

The study also found that outsourcing has retained its position as an important strategy, with 52 per cent of respondents spending more than 10 per cent of their IT budgets on outsourced activities.

But the priorities for outsourcing have changed – ­ last year the top reason for outsourcing was stated as being better able to meet the needs of the business; this year cost reduction has moved into the top position, according to 38 per cent of respondents.

Cooper-Bagnell said that although spending on outsourcing may be an easy way to save costs, it might not be a long-term option.

“If you’re serious about investing money perhaps it’s better to invest in people and talent and make sure you’ve got the right team around you,” he said.

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