The velocity of change
The new hybrid infrastructure model creates risks for CIOs, including:
- Strategic and financial risks. The number of vendors is growing, but the required size is shrinking. This can raise questions about their long-term viability. There could also be business continuity risks if these smaller providers fail to meet service level agreements. What plans need to be in place if a vendor's data center goes down? What losses could result?
- Geographic risks. Geopolitical risks, from natural disasters to political unrest to persistent terrorism threats − particularly in emerging outsourcing markets − present significant risks of disruption to outsourced IT services.
- Capacity risks. Smaller vendors may be able to offer greater flexibility, but their size could end up working against them. Ultimately, they may not have enough capacity to support a growing customer base.
- Control risks. An increase in outsourcing results in less control over your data. This presents the potential for data breaches and other security exposures.
- Contract risks. IT functions will need to implement a rigorous vetting process to ensure that contracted vendors offer the right services in stable locations with sufficient capacity to support the business now and in the future. New vendors will also need to prove ongoing solvency and robust security.
The CIO role is shifting to a more integrated and valuable position.
New hybrid infrastructure models are creating a number of inherent risks for CIOs.
The rapid introduction of disruptive technology is fundamentally changing how organizations go to market with products and services, interact with their customers, innovate and achieve competitive advantage. It is also creating a host of new risks that CIOs need to address.
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