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CIOs transforming IT and embracing Shadow IT: Logicalis survey

T.C. Seow | Nov. 13, 2015
CIOs routinely by-passed by line of business (LoB) are transforming to become internal service providers to meet LoB demands.

Close to half (41 percent) of CIOs in Asia and about a third (31 percent) globally are routinely side-lined when it comes to making IT purchasing decisions, but a growing number (30 percent in Asia and 42 percent globally) are now actively embracing a new service provider model in an attempt to stay relevant to line of business colleagues.

These findings are from the third annual CIO survey from Logicalis, an international IT solutions and managed services provider.

The 2015 Global CIO Survey polled more than 400 CIOs worldwide and found IT leaders under growing pressure from Shadow IT.

The phenomenon of Shadow IT, when line of business executives by-pass the IT department and CIO in making IT investments, is now a reality for the vast majority — 91 percent of CIOs in Asia (90 percent globally) find themselves by-passed by line of business at least sometimes.

With CIOs gradually losing the battle to retain the balance of power in IT decision-making, the survey found that today, about two-thirds (68 percent) of CIOs in Asia (and 66 percent of CIOs globally) hold the balance of power over spending — making more than 50 percent of purchase decisions.

According to Logicalis, this shows that the threat from LoB driven IT choices is forcing CIOs to re-align their IT strategy to better serve the needs of their line of business colleagues, and transforming IT to become the first choice for all IT service provision.

Mark Rogers, CEO at Logicalis Group said: "The democratisation of IT through technology consumerisation, ubiquitous mobility, growth in the cloud and business transformational technologies such as analytics, line of business colleagues' power in decision-making is only going to present increasingly tough challenges for the CIO and the wider business executive."

"Unchecked and often unseen by IT, this has serious implications for IT governance and security, especially from solutions designed to directly fire the imagination of line of business executives to the possibilities that technology could have on their business," he added.

IT transformation is underway
The Logicalis survey suggests that IT leaders are seeking to retake control of IT — not by eliminating Shadow IT but by embracing it.

CIOs are seeking to transform IT departments into internal service providers — lean organisations managing service portfolios, not technology, and able to respond quickly to line of business demand.

CIOs are freeing themselves from the day-to-day operational tasks. CIOs in Asia lead with 50 percent of respondents, compared to 38 percent globally, spending at least 50 percent of their time on strategic activities.

Tellingly, CIOs worldwide are now spending almost half of their time (40 percent in Asia and 42 percent globally) on activities consistent with developing and delivering the internal service provider model — 'engaging with line of business' and 'scoping and provisioning new IT services'.


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