Outsourcing and communications expert Martyn Hart looks at a hot
issue of the day. Is it curtains for the IT/IS director? Has
Internet really killed the IT star?
It can certainly look like it, and that was the conclusion of a
recent National Outsourcing Association meeting following a
presentation by Jeremy Acklam, Virgin Rail IS director.
The argument went that the Internet has shown business management
that IS/IT doesn't have to be delivered via a group of wizards in
the basement. Nowadays companies have got used to matrix management
where products and service are delivered through virtual teams,
which may consist of a mix of their own staff and suppliers.
The dotcom revolution showed that whole businesses could be set up
from scratch without any of the paraphernalia that "big" companies
take for granted. When a dotcom starts up, it is usually cash rich
but short on skills and technology. Management buys in skills, or
more commonly outsources them and buys outsourced services to
supply the technology.
So why shouldn't this model work for any company?
The mantra today is business transformation, identify where you
want to be and go there. Business transformation is possible, but
you don't have to take your legacy systems (and departments?) with
you.
Transformation involves a mix of existing staff and processes with
the strategic outsourcing of parts of the new business you either
haven't the skills, time or capital to cater for.
Virgin has deployed strategic outsourcing to successfully achieve
many of its objectives, such as online ticketing, kiosk ticketing
or lost property management (via an ASP service).
So, if lots of other companies take a similar route, what will the
IS/IT director do in the future?
There will be two major changes. First, they will move closer to
the business, understand the business drivers and help offer the
IT-based strategic solutions that will achieve the organisation's
objectives.
Second, they will manage the outsourced relationships, understand
what current and potential partner suppliers can offer and build on
those relationships.
"So what is this like in reality?" Jeremy was asked. "Fun" was the
reply!
So maybe Internet hasn't killed the IT star. The IT/IS director
isn't dead, just undergoing transformation.
How do you see the future role of the IT director?
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Web site. Please state if your answer is not for
publicationMartyn Hartis chairman of the National Outsourcing
Association and practice director at Mantix, a consultancy that
delivers value from complex programmes.