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CIO Insight, November 8
The typical IT organization is changing in response to external factors such as globalization, forcing a re-think in the types of attributes and skills that IT managers must possess. Over the next five years, CIO Insight Research predicts a dramatic transformation in the size and scope of the traditional IT organization, as internal departments become smaller, nimbler and more specialized. Along the way, senior executives must determine what is truly core to the IT business, and which processes and systems can be outsourced to specialists around the globe.
This changing composition of the IT organization will impact the way that companies hire IT talent and the way that they partner with outside IT talent. A smaller team of managers, analysts and planners will continue to oversee mission-critical work, while most other functions will become the purview of consultants, contractors or offshore service providers. IT departments are moving away from outsourcing low-risk, low value-add activities and outsourcing higher-risk, higher value-add activities. Moreover, companies will need to innovate faster and introduce new capabilities while dealing with increased commoditization of IT.
Assuming that more organizations will be moving to this leaner model of IT, it is likely that businesses will continue to outsource more specialized work, from software development to knowledge management. As IT becomes more strategic and integral to the operation of the business, executives must re-think their expectations of the CIO and their expectations of IT. Not only must they contend with severely limited staff time and departmental budgets, but they must learn to operate in a changing environment where they are expected to manage and control alliances and negotiate contracts and service-level agreements, all while staying in tune with business needs and priorities.
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