CIOs must be 'broker of technology', not IT managers

By SiliconIndia | Thursday, January 5, 2012

According to Gartner analyst Linda Cohen, CIOs must re-evaluate their use of outsourcing and should play the role of a 'broker of technology' rather than manager in order to ensure effective resourcing.

CIOs may have a misconception about outsourcing that it will save the business money over a period of time, said Cohen. She is of the opinion that the idea that outsourcing is a problem solver is not always the case. "We ask our CIO clients to consider outsourcing as an operating strategy rather than a problem solver," she said.
CIOs must be 'broker of technology', not IT managers

The main reason CIOs choose to outsource is that they think that it will help them lower their costs, but even the history tells that outsourcing doesn't save money. An important CIO consideration is to develop a clear strategy around not only IT requirements but business requirements, according to Cohen.

Mentioning that the CIOs new role is to go and find the new technology for the business, Cohen said a shift in strategy around outsourcing will see the role of the CIO change slightly.

For CIOs looking to outsource, she has given certain tips that include:

Taking control of outsourcing technology
"We're telling our CIO clients that its really time to take control of sourcing as a strategic endeavour."

Avoiding 'old fashioned' SLAs
"The old fashioned structure of these deals created service level agreements that were all about the underlying technology and how it operates."

Avoiding vendor lock-in
"The new method of service delivery is like a utility style service. The way the vendor operates creates the capability is their factory, their way, in their preferred location."