The uncertain economic scenario has led to CIOs changing the priorities of the budget and IT operations while boosting business growth
The start of 2020 saw healthy IT budgets being allocated by the organizations. The pandemic has resulted in a complete turnaround. The probable global recession and economic shutdowns have affected the organizations’ finances and revenue, leading to major impacts on IT budgets in majority of organizations across the world.
Dresner Advisory Services stated that 60% of the CIOs say organizations are facing projects and IT budget cuts. IDC has stated that organizations will face a 5.1% reduction in global IT budgets and spending.
CIOs are now tasked with delivering productive essentials with fewer resources, and moreover, they are now facing pressure to focus on operational efficiency. The current scenario has seen IT operations boosting revenue generation and securing the organization’s position in the market. During the pandemic situation CIOs have to redirect funding without reducing or refusing funds for initiatives that will potentially boost business revenue.
Veteran IT leaders and experienced advisers have stated that efficiency can’t be viewed only based on low costs. CIOs are tasked with delivering efficient and best services by the organizations while running the leanest possible operation. IT leaders now have to be strategic and creative when deciding on measures for organizational benefit.
CIOs need to follow the below methods to implement efficient IT operations.
Professionals for managing vendor contracts
CIOs are planning measures to gain more value out of the vendors working with the IT department. They need to implement vendor lifecycle management measures and hire vendor management professionals experienced with licensing and negotiations.
CIOs need to analyze the technology and software deployed in the organization and select measures that are cost-efficient and boost the business effectively.
Reduce poor performers
IT leaders need to implement the budget focused on employees and projects that will deliver. CIOs should carefully focus on technologies that deliver immediate returns. This can be done by honestly assessing whether the deployed projects are beneficial in the long term for the organization.
Automating IT operations
CIOs have been pushing for automation of the organization’s business side to minimize errors, reduce repetitive work, and speed up operations as well. Automation of IT operations also ensures freeing up critical employees who can implement their skills and expertise in scenarios that require skilled attention. An unnecessary workforce can be removed which contributes to reduced costs.
Promote the implementation of cloud platform
CIOs promote embracing cloud platform for storage of data. The costs and values are to be
considered from a holistic viewpoint especially for complex workloads. IT leaders prefer a cloud platform as it improves performance and saves employee time as well.
Consider efficiency as a continuous process
Veteran CIOs state that operational efficiency should be approached as an ongoing process rather than the end-goal. The pandemic resulted in IT leaders being asked to trim the budget from certain aspects of the operations, and seasoned CIOs didn’t implement the cuts as a reactionary measure but rather as an ongoing management goal. Constant assessment of processes, workforce, and technology is imperative to ensure the optimization and efficiency of the IT operations.