CIOs under relentless pressure to cut costs

Pro

26 January 2009

Chief information officers and IT service providers will come under increasing pressure to save costs and improve efficiency in 2009, leading to a greater interest in new technologies.

So says Unisys GM Duncan Tait, who notes that concerns about the “availability of cash” have had a huge impact on decision making in outsourcing and IT provision, and that companies are increasingly frustrated with their CIO’s inability to strip costs quickly enough.

As a result, enterprises will register growing interest in providers that can offer virtualisation and software-as-a-service, or “platform-as-a-service”, technologies.

“CIOs are being asked to take the costs out [almost] overnight, but you have to think radically about how you do that,” said Tait.

 

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“And on the supply side, this is going to sort the wheat from the chaff. They will need to focus on what they are good at, and change the delivery model to software-as-a-service.”

CIOs unable to cope with these growing cost pressures or manage the proliferation of consumer devices in their organisations may increasingly be circumvented by business process owners, whose influence in determining where and how IT investments are made will grow, according to Tait.

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