Is the Term ‘IT Department’ on Its Way Out?

 
 
By Karen A. Frenkel  |  Posted 01-28-2015 Email
 
 
 
 
 
 
 
 
 
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    LOB Execs Gaining Power
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    LOB Execs Gaining Power

    57% of respondents said the influence of LOB colleagues has increased since last year. 28% said the balance of power in IT spending now lies with these executives.
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    Balance-of-Power Shift to Persist
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    Balance-of-Power Shift to Persist

    62% of those surveyed believe LOB execs will gain more power over the next three to five years, up from 44% last year.
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    LOB Execs Still Rely on CIOs
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    LOB Execs Still Rely on CIOs

    Although LOB managers have more control over IT spend, they rely on IT departments to manage and maintain the technology they buy. 66% of CIOs said their department is responsible for supporting technologies and managing services.
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    Resourcing Challenges Expected
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    Resourcing Challenges Expected

    If this shift in balance of power continues, skills requirements will become harder to predict as the range of IT products and services and support for them grows.
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    CIOs Reshaping IT Functions
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    CIOs Reshaping IT Functions

    CIOs and IT directors support LOB requirements and are refocusing IT as an internal service provider while resuming control of IT infrastructure. But IT departments are not yet service-defined; 76% of respondents said their organization is service- rather than technology-focused.
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    Demand for Skills Changing
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    Demand for Skills Changing

    Business-oriented skills are in demand when recruiting new staff. 34% cite technical skills as a top priority, 28% say communication skills are of primary concern, 15% see IT service management skills as a priority, 12% look first for business-analysis skills
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    More Pay for Business IT Professionals
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    More Pay for Business IT Professionals

    65% of respondents expect to pay more for business IT pros compared to traditional technical professionals. 25% believe pay will be between 5% and 10% more. 22% expect pay to be between 10% and 20% more.
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    CIOs Want to Focus on Strategy
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    CIOs Want to Focus on Strategy

    47% want one-half or more of their IT services, including the cloud, to be provided or managed by external service providers. Only 3% want all services to remain in-house.
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    ‘IT Department’ Out-of-Date
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    ‘IT Department’ Out-of-Date

    Almost one-half of CIOs agree that the term "IT department" is outdated and expect their departments to be renamed in the next two years to reflect their service-provider emphasis. Some possibilities: Business Enablement Center, Business Systems Support, Digital Services, Global Business Services
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    Cultural Change Is Slow
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    Cultural Change Is Slow

    In 2013, 33% of survey respondents dedicated 80% of their time on day-to-day technology management. That has only fallen to 30% this year. In 2014, 79% of CIOs spent more than one-half of their time on day-to-day technology. This year, the percentage has fallen to 73%.
 

In response to a shift in the balance of power toward line-of-business executives, CIOs are reshaping their departments as internal service providers, according to a recent survey. And one-half of surveyed CIOs believe the term “IT department” is out of date and will be renamed within two years, according to the Logicalis-conducted survey titled "Establishing the Internal Service Provider." The report surveyed 177 CIOs and IT directors from midmarket organizations in 24 countries in Europe, North America, Latin America and Asia-Pacific. "The CIO's role must change from that of a technology provider to one that is laser-focused on delivering services that meet LOB users' needs," said Mike Martin, senior vice president of Solutions and Services at Logicalis US. "The survey validates what we have already discovered about shadow IT… It is no longer seen as a way for business users to circumvent IT; instead, it is the natural result of an unfulfilled need." The shift will affect hiring practices, adding more weight to business-oriented skillsets.

 
 
 
 
 
Karen A. Frenkel writes about technology and innovation and lives in New York City.

 
 
 
 
 
 

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