As line of business executives take ever more power over IT purchasing, leaving CIOs out of the loop. Joanne Nelson, VP of International Marketing at Logicalis, looks at the scale of the challenge facing IT leaders and wonders if IT departments are reaching a tipping point.
The results from the latest Logicalis CIO Survey tell a fascinating story of shifting power.
On the one hand, there can be no doubt that CIOs’ grip on a traditional powerbase, IT decision-making, is slipping. The survey found that almost one third (31%) of CIOs globally are routinely side-lined when it comes to making IT purchasing decisions.
This was no straw poll. The survey includes responses from more than 400 CIOs worldwide – and universally it found IT leaders under growing pressure from Shadow IT.
The phenomenon, when line of business executives by-pass the IT department and CIO in making IT investments, is now a reality for the vast majority – 90% of CIOs worldwide find themselves by-passed by line of business at least sometimes.
Overall, CIOs are losing the battle to retain the balance of power in IT decision-making. The survey found that today, only two thirds (66%) of CIOs hold the balance of power over spending – making more than 50% of purchase decisions. One year ago, when 62% predicted that line of business colleagues would gain more power, 72% of CIOs held the balance of power.
Looking at these results, it is hard to escape the notion that CIOs are at a tipping point. Yes, they are just about maintinaing overall control of IT spend – but the relentless march of Shadow IT will now be posing increasingly tough challenges. Unchecked and unseen ‘services sprawl’ has serious implications for IT governance and security, as well as overall IT performance under pressure from increasingly diverse solutions.
The question is: What are CIOs doing about Shadow IT?
For more information, download the Logicalis CIO Survey Report 2015