EY - From cost center to business provider

From cost center to business provider

Changing the way that you change the IT function

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It's that moment when solution and evolution meet.

CIOs know the velocity of change in technology continues to add complexity to their role, function and environments. It affects organizational operations, marketing, sales, customer interactions, innovation and competitive advantage.

CIOs also know the IT investment and transformational efforts made today are soon obsolete. To meet the current and future needs of the business, they need foresight and flexibility.

They must predict challenges, respond with skilled resources, maintain critical business operations and meet end user demands. Adding to these perpetual challenges are the business and end user demands of new technologies.

Traditionally, the CIO role required a definite administrative effort. Now, the CIO must work as a strategic business advisor and lead a dynamic and value-driven IT function.

In the last two years, many IT departments have undergone significant IT transformations, but they need to do more.

To meet the business needs of today and tomorrow, CIOs need to adopt a more collaborative and encompassing approach, enabling IT departments to deliver “one-stop shop” services that achieve the organization’s strategic goals and satisfy increasing internal customer demands. They need to evolve from a cost center to a profitable services provider, offering commoditized services that are scalable and responsive to business needs.

For CIOs looking to take their IT function — and their role within the organization — to the next level, now is the time to consider IT as a service (ITaaS). Using the modular flexibility of the ITaaS framework, CIOs can change the way that they adjust the IT function to meet the demands of the business now and into the future.

In 2013, EY commissioned a survey of cross-sector Fortune 1000 CIOs to learn how they view their challenges in increasingly complex environments. The survey also asked if they are using or would consider using ITaaS to meet the demands of their company.

Our survey findings suggest that:

  • The speed and complexity of technological change continues at a great pace, and it is a constant challenge for CIOs to keep up.
  • CIOs believe that training and foresight offer a way for IT to keep pace with demand but are also open to a change in approach to the traditional IT cost-centric shop.
  • CIOs see challenges related to rapid technological change in the adoption of cloud technologies and the increasing complexity and volume of technologies to support.
  • IT functions face budget and staffing resource constraints that drive end user complaints surrounding outdated hardware and poor response time.
  • In response to budget woes, IT departments are using cloud computing and renegotiating existing hardware and software contracts to cut costs and improve efficiency.

New technology isn’t just about keeping up with the latest. It’s about integrating innovations with your current technology investments.

Our IT Advisory team helps you rethink how you architect, deploy and manage technology that will boost your business. Contact an IT Advisory Leader so we can help you see things differently.

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