IT Spend Is Moving From the CIO to the Business

IT Spend Is Moving From the CIO to the Business

By CFO Tech Outlook | Monday, November 04, 2019

Information TechnologyMost of the organizations are shifting the direct control on the overall information technology spending from CIO to non-IT departments.

FREMONT, CA: According to a new study by professional services firm KPMG and recruitment agency Harvey Nash, the chief information officer, is losing direct power on the overall information technology spending. Now in most of the significant companies, non-IT departments lead investments in digital and technology.

The KPMG and Harvey Nash survey conducted in nearly one hundred countries collected data from among around 3,600 CIOs. The result shows that more than half of the organizations allow a share of their technology spends to be managed by the business, including marketing, sales, or supply chain departments. Some of the organizations are even supporting non-IT departments to exert influence on tech investments.

KPMG’s global leader for CIO services, Steve Bates, says there is no longer a business strategy and technology strategy, so organizations are dispersing their IT spends. Now it is merely strategy with technology driving it.

Data analytics, automation, and investments in cybersecurity are driving this pattern. Artificial intelligence touted a game change for a range of sectors, including vitality and utilities and the retail business, likewise positions among the most elevated popular zones of the venture.

Allowing non-IT departments managing IT budget is also risky in some manner, like in keeping control of privacy and cybersecurity risks. Institutions that enable business-manages IT have to face more significant dangers of cyber attacks as compared to other organizations. Another is the fact that it asks a new way of working internally, among other areas requiring line managers to have more profound knowledge of IT business cases and project managers to master their digital skills, while business and IT as a whole need to forge a new type of relationship.

Institutions that get the mix right between IT-led spending on automation and business involvement are however, well positioned to reap the benefits. According to the research in the commercial side of business opportunities, these types of companies perform better when compared to competitors.

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