Simplify and Realign
According to a benchmark report from The Hackett Group, Inc., reducing technology complexity and realigning staff can help the average IT outfit shine enough to rival the global leaders. To put a number on this assertion, Hackett concludes that many world-class IT companies save up to $36 million per year by following both simplification and realignment criteria.
“Digitization, the explosive growth of data volume, and the integration of technology into virtually every element of the corporate world have created a tremendous opportunity for IT to have a positive impact on the bottom line. We believe that unlocking the value of IT throughout the entire value chain is critical for companies that wish to dominate their industry in the future…”
Research shows that world-class organizations shift their budgetary resources from daily operations to the improvement of overall business practices, with the best IT firms using 37 percent fewer applications and 80 percent fewer technology platforms. And when it comes to optimal staffing, a company needs to push those with technology talent beyond their departmental silos by adopting talent management best practices.
Unfortunately, improved staffing performance faces resistance in the form of offshoring. The rise in demand for IT skills coupled with a decline in domestic availability continues to make offshoring a desirable option for most companies. Hackett Group acknowledges that offshoring and outsourcing are damaging the traditional mechanisms for farming domestic talent, but it nonetheless argues that retaining such talent is central to a firm’s delivery of strategic value.