A new kind of IT organization has emerged in the wake of the recession -- one that has reduced fixed costs by using on-demand strategies, according to a new study from The Hackett Group. This degree of "IT agility" helps organizations better capitalize on business opportunities and minimize risks today. It is no longer about zeroing in on "cutting IT costs" (although that is certainly part of the equation). It is about taking better advantage of new, available Service Delivery Models to match IT initiatives with business performance. This approach is needed now more than ever here in North America, where economic growth is projected to lag dramatically behind that of Asia, putting at risk our ability to remain globally competitive. Hackett's research distinguished the IT practices of "top performer" organizations -- as defined by those that achieve the best results across more than 20 relevant IT agility metrics -- from those that experience more typical performance results. More than 30 companies took part in Hackett's study. Here's what the resulting research reveals:
Up to one-half of total Selling, General and Administrative (SG&A) costs of an organization can come from IT. Organizations suffer when revenues cannot keep up with these rising expenses.
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