Some useful ideas from McKinsey.
It has happened before, the downturn in 2001 affected corporate spending on IT in a significant fashion. This time around though, IT plays a more prominent role, IT budgets are larger, IT governance mechanisms have streamlined organizations and e-commerce has already moved to the core of operations so IT organizations are leaner, larger, and even more important.
Trend1: IT and corporate finance will converge
- 2009 will be the year that the CFO will get involved with IT simply because capital is scarce and there is so much of it locked up in IT assets.
- Cost cutting/capital saving measures: outsourcing, software-as-a service, sell hard assets and lease them back, more use of vendor financing
Trend2: Increasing internal competition for IT budgets
- Since budgets will be tight and IT is a strategic driver, competition between business units will intensify
- CIO’s will have to be honest brokers
- Business knowledge to weigh rational decisions will be critical, now more than ever, IT and business need to understand one another and technology decisions have to be made with a solid business view
Trend3: The ‛last‛ IT project?
- Because the large uncertainties and disparaties in IT project returns, many of the least successful companies will not start any new IT project during the downturn
- IT needs better government and, as we already mentioned above, more infusion of business knowledge to justify projects
- A more piecemeal, modular approach like SOA could be useful
Trend4: Regulators demand more from IT
- Public scrutiny of business will increase, requiring more accurate data produced (largely) by IT systems, providing better insight into how banks manage risk, pharma companies manage drugs, and industrial companies manage environmental risks, for instance.
- Warrants closer cooperation between IT and legal departments.
Trend5: The offshoring and outsourcing landscape shifts
- The landscape of vendors has become much more competitive, and a shake up is likely
- Successful CIOs will manage their vendors as a portfolio so they will be well positioned as new winners evolve
- Indeed, vendor management should be part of any intelligent IT governance system, like ITIL.