That means the pressure to do more with less is back. However, CIOs like Sanjay Chowdhry, Head-IT at General Cable, are facing the challenge undeterred. He believes that this will only encourage the growth of innovative strategies. "Looking at the flat growth of IT investments, 2013 will be another year of budget cuts and reducing AMC costs. As a CIO, I will feel the pressure of delivering better with the existing IT setup. But we still have a core set of services that we must adhere to," says Chowdhry. "That's where I'm looking for innovative ideas to sprout up. Just like the shared services approach enterprise IT departments adopted.""
4. Preparation to Outsource
According to the "State of the CIO Survey", about 34 percent of Indian CIOs plan to outsource 50 percent and more of their IT in 2013. Many CIOs who want to gain access to world-class capabilities or access to new technologies or services are outsourcing their internal resources to make way. "Our main challenge this year will be to establish a reliable, secure WAN network in small towns to support our expansion plans. We have outsourced our new applications, datacenter and DR to help focus on core business processes," says Dinesh Chandna, Sr. VP and CIO at Magma FinCorp.
However, not all CIOs are excited about outsourcing. For example, General Cable's Chowdhry is looking at some serious internal resource changes. "It will be difficult, but my focus this year will be on scrapping outsourcing, and hiring back IT employees at lesser payout to reduce costs," he says.
5. Competent Resources
For two years in a row, CIOs, in our "State of the CIO Survey", have told us that inadequate in-house skill sets has remained one of the top three challenges they face. As per the survey, about 46 percent of Indian enterprises are expecting their IT headcount to increase.
But with CIOs being pressured to perform better with lesser staff, the rise in demand is only for resources with deep technical skills. "Today, IT turnovers are being scrutinized more closely. And so, we strive to keep our key resources with us, especially when they are constantly being recruited away. Also, we are strongly focusing on rapidly acquiring high quality IT resources with knowledge and experience, for both in-house as well as outsourced purposes," says Chandna.
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