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New technology to shift IT organizational processes

September 05, 2013

The rise in spending and investment in IT departments is not just a case of "more of the same." Instead, it will provoke significant changes in how the department is organized, including the IT staffing onboarding process, training new leaders and retooling operations.

Companies focusing more on IT departments     
Research from management consulting firm A.T. Kearney found that over the next seven years, IT departments will experience significant shifts in operational processes, especially as two-thirds of respondents indicated they plan to increase funding for IT solutions. 

The rise in IT investment is being spurred by a few drivers, including sales and customer interactions as well as rapidly changing technologies. In fact, almost 85 percent of respondents believe IT requirements will "significantly increase," with 75 percent predicting a concurrent rise in time pressure in which to accomplish these adjustments.

As investments shift, so to will the role of IT. While IT departments currently focus on automating processes, the study predicted that by 2020, IT network applications professionals will be more involved in leveraging big data to improve customer relationships and even marketing campaigns.

Furthermore, they will be dealing with an ever-expanding catalog of application{s}. Nearly 85 percent of CIOs expect to have more applications present and being used in operations 2020 than they do currently, with many of these enabling new channels, such as mobile.

"CIOs will be asked to contribute directly—faster and more efficiently—to the success of the enterprise," said Christian Hagen, a partner at A.T. Kearney and one of the study's authors. "Additionally, IT will be asked to be a leader in digital transformations and technologies. In parallel, CIOs will need to manage a highly complex application landscape with a slightly increased but still limited budget."

IT department leaders will be critical in ensuring these infrastructure changes are a success. In the federal government, for example, CIOs are being cited as not doing enough, Computerworld reported. A panel of senior officials told a House subcommittee in July that attempts to consolidate data centers have been slowed by faulty reporting and weak CIO roles. As a result, agencies such as the Department of Defense and the Office of Management and Budget have been plagued by a lack of transparency, which can make oversight nearly impossible, the news source explained. 

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