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Tue, Jun 23, 2009 16:20 EDT
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Posted by: Jen Darr in Best Practices Topic: IT Organization Management
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You can weather the economic downturn lamenting the halcyon days of boundless IT spending and grand tech projects, or you can treat it as a challenge, as a time for reflection and behavior modification. At least that was the sentiment at the mid-May MIT Sloan CIO Symposium, where CIOs and their ilk met to discuss – what else? – the recession and its effect on the role of the CIO.
Ripples from the conference traveled to industry publications, blogs and Twitter, with writers offering their take on the future of outsourcing. Here’s a rundown:
Lesson No. 1: Flexibility is the new black.
SearchCIO editor Rachel Lebeaux reported that the watchword of the symposium was "flexibility." It’s a great trait to have, no matter what industry or economic climate. Here's what a focus on flexibility could mean for outsourcing:
Lesson No. 2: Costs aren't the only consideration.
A handful of publications are writing about IT outsourcing costs of late, including CIO and The Wall Street Journal. Some say prices are falling; others say the opposite. What most agree on, however, is that quality is an essential part of the contract package. Outsourcing has become a dirty word, partly because service level agreements are ignored. You cannot take the cheaper deal and expect the same quality.
Lesson No. 3: Don't try to boil an ocean.
This metaphor was mentioned in a CIO piece about how IT leaders can learn from their failures. Though the piece was not a reaction to the symposium (it was published before the event occurred), one of its main arguments is a timeless truism*, so it rightly deserves a place here. After years of trying to squeeze ROI out of all-in-one, long-term deals, companies may be opting for smaller, a la carte outsourcing contracts. It's the difference between trying to boil the ocean and heating up the kettle. It makes sense, too. Smaller contracts are easier to control, and offer opportunities for setting performance-based goals.
*According to FastCompany and other sources, when a reporter asked Will Rogers what should be done about U-boats during World War I, he responded, “Boil the ocean.”
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I agree with the suggestions outlined, however, I believe they simply scratch the service. In hard times such as these, CIO's should be continuing to bring improvements to their operations while focusing more than ever on aligning IT to the business. This may sound obvious, however many will feel stymied by the lack of financial support. When capital spending inevitably falters, resources will become available that can be assigned to programs that require minimal investment or external assistance while potentially providing quick-wins or valuable returns. Examples such as IT-to-business alignment, process improvement, project management analysis (i.e. improvements) and resource planning offer opportunities for significant returns with minimal investment. These are also the very same areas that can often be taken for granted while carrying a significant part of the burden during the good times.