Unlike previous Julys, this year is anything but slow at Systems Alliance. So while we don’t have quite as much time for contemplating the big questions, e.g. the meaning of life, the universe and everything else, we are remaining steadfast in our pursuit of ideas that will help us grow as individuals, improve our business and give you, our clients an edge.
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The process of modeling financial options for IT service delivery is evolving as service delivery components become more fragmented, service provider options multiply, contract maturities decrease and enterprise IT organizations adapt to a service delivery “assembly” culture.
Before the economic meltdown of 2008 – 2009, the rate of change in enterprise IT service delivery models proceeded at a glacial pace. Most organizations operated with an internally focused set of service delivery capabilities (using internal resources, applications and infrastructure to meet the needs of the enterprise) or with a two-dimensional outsourcing model (the enterprise and a single broad-line outsourcer). For purposes of this discussion, we define service delivery models to include the entire portfolio of service delivery processes as opposed to the selective outsourcing of individual service delivery components.
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In conversations with current and prospective clients over the last few weeks, most believe the economy is in recovery. Yet these same CIOs have two sharply divergent views on the state of IT and the approach they're taking to develop roadmaps for the future. I've labeled these perspectives restoration and transformation – see how they align with your thinking.
The restoration perspective sees the challenges ahead in terms of past funding levels, headcount, skills and gradual change in the technologies deployed across the enterprise. Particularly in those industries impacted by an eroding tax base (state & local government, higher-education and healthcare), the focus is on keeping the lights on (literally in some instances), hanging on to talented professionals during recurring rounds of reductions and making the most of an uncertain technology investment environment. Coupled with increasing regulatory requirements, the CIO’s job is becoming more challenging each month rather than less so.
A transformation perspective appears to be gaining ground across other industry verticals. There is a recognition that the world has dramatically changed, and isn’t likely to return to the old paradigm. Ever increasing levels of IT functionality are being offered to the business, emerging capacity on demand models (partly cloudy?) SaaS, DaaS and PaaS approaches are opening up brave new worlds for CIOs functioning as architects intent on differentiating their businesses with IT.
Funding makes a heck of a difference. Building an effective business case that clearly correlates results with spend is back in fashion.
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