Welcome!

News Feed Item

Tension Between IT Departments and Business Leadership Forces New Approach to Delivering Technology to the Business

Global Research Shows 38 Percent of Canadian Technology Budgets Now Controlled Outside of IT Departments; 67 Percent of Canadian C-Level Executives Believe They Make Faster Decisions Without Involvement of IT

TORONTO, ON -- (Marketwired) -- 04/15/14 -- Avanade, a global business technology solutions and managed services provider, today released results from a large-scale global survey on the changing role of IT. The research shows technology budgets and decision-making migrating away from IT departments, and IT taking on new roles in the enterprise. Thirty-eight percent of Canadian technology spending (37 percent globally) now happens outside of IT, because the vast majority of business leaders -- 67 percent of Canadian C-level executives (79 percent globally) -- believe they can make better and faster decisions without the involvement of IT. [Click to tweet.]

With these shifting budgets and loss of control, the global study of 1,003 business and IT leaders shows a new "services broker" model for IT taking hold. In this model, IT staff consult with departments across the business to better understand their technology needs and objectives, and source internal or external IT services or partners to meet these demands. Twenty-nine percent (35 percent globally) of Canadian companies' IT departments act primarily as services brokers today. Avanade's research shows that among companies whose IT departments are structured this way, 58 percent globally report they will expand the role of IT services brokers in the next 12 months. Additionally, 68 percent of companies in Canada and globally report their IT department is contributing more to accomplishing business objectives than they did three years ago.

News Highlights

  • Thirty-eight percent (37 percent globally) of Canadian budgets allocated in 2014 for technology is now controlled by business departments outside of IT. That means more than one-third of a company's total technology purchases is made by business people who do not report to the CIO. [Click to tweet.]
  • The vast majority of Canadian business leaders -- 67 percent (79 percent globally) of C-level executives -- believe they can make technology decisions for their department better and faster without the involvement of IT.
  • IT is increasingly playing the role of business advisor to both internal stakeholders and external partners. In fact, 89 percent of Canadian respondents (83 percent globally) said they are comfortable with IT staff interacting directly with important clients and partners in a consultancy role. And 65 percent of Canadian companies (66 percent globally) plan to expand the role IT plays as business advisers in the next year.
  • To make this shift, business leaders want IT to build skills in key areas that will help them source innovative technologies that solve business problems for employees, customers and partners in an increasingly digital world. C-level executives globally report a need for more skills in cloud service (44 percent) and service and system integration (43 percent).
  • Companies planning roles for IT as business advisors and services brokers see positive results. They report that IT staff has the needs of the employees in mind -- 71 percent of global C-level executives say the IT department today has "an employee-centric culture." And 68 percent of these companies report their IT departments contribute more to accomplishing the objectives of the business than they did three years ago.

Even with these changes, time spent managing the same old legacy systems continues to distract the agenda for IT staff -- 34 percent of Canadian IT staff's time (36 percent globally) is spent managing and maintaining legacy systems. This leads to a situation known as "two-speed IT" where IT staff must balance the support of legacy systems with the need to continuously innovate in order to stay ahead of the competition.

"There is tension between IT leaders and C-Suite executives as control over IT budgets become less centralized and the roles and expectations from IT staff evolve," said Dean Olmstead, Avanade corporate vice president, Canada Operating Unit. "We believe that IT has an unprecedented opportunity to be involved in decision-making and take on a business advisory role. Canadian companies have the opportunity to take advantage of this new reality and position IT staff as services brokers to better contribute to business objectives."

The research also supports the findings of Accenture's High Performers in IT: Defined by Digital report, which found that companies with high performing IT organizations invest in IT to deliver strategic capabilities to the business.

Avanade surveyed 1,003 C-level executives, business unit leaders and IT decision-makers in 19 countries. To learn more about Avanade's views on IT Without Boundaries, please visit www.avanade.com/NoITBoundaries

About the Global Survey
Avanade's survey was conducted in February 2014 by Wakefield Research (www.wakefieldresearch.com), an independent research firm. It surveyed 1,003 C-level executives, business unit leaders and IT decision makers, at the top companies in the following countries: Australia, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Italy, Malaysia, Netherlands, Norway, Singapore, South Africa, Spain, Sweden, Switzerland, the United Kingdom and the United States.

About Avanade
Avanade helps customers realize results in a digital world through business technology solutions and managed services that combine insight, innovation and expertise focused on Microsoft® technologies. Our people have helped thousands of organizations in all industries improve business agility, employee productivity and customer loyalty. Avanade combines the collective business, technical and industry expertise of its worldwide network of experts with the rigor of an industrialized delivery model to provide high quality solutions using proven and emerging technologies with flexible deployment models -- on premises, cloud-based or outsourced. Avanade, which is majority owned by Accenture, was founded in 2000 by Accenture LLP and Microsoft Corporation and has 21,000 professionals in more than 20 countries. Additional information can be found at www.avanade.com.

Avanade and the Avanade logo are registered trademarks or trademarks of Avanade Inc. Other product, service, or company names mentioned herein are the trademarks or registered trademarks of their respective owners.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., discussed how these tools can be leveraged to develop a lasting competitive advantage ...
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, presented an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He then expounded on the industry issues he frequently came up against as an analyst, and ...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to ...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
Given the popularity of the containers, further investment in the telco/cable industry is needed to transition existing VM-based solutions to containerized cloud native deployments. The networking architecture of the solution isolates the network traffic into different network planes (e.g., management, control, and media). This naturally makes support for multiple interfaces in container orchestration engines an indispensable requirement.
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Because IoT devices are deployed in mission-critical environments more than ever before, it’s increasingly imperative they be truly smart. IoT sensors simply stockpiling data isn’t useful. IoT must be artificially and naturally intelligent in order to provide more value In his session at @ThingsExpo, John Crupi, Vice President and Engineering System Architect at Greenwave Systems, will discuss how IoT artificial intelligence (AI) can be carried out via edge analytics and machine learning techn...