CIO Results 2014
IT Functions Strive for Innovation along Cost-Cutting
Bratislava, 10 April 2014 – Most global companies’ management expect more than merely basic service from their IT function. They also identify business strategy implementation as being important, with almost half expecting business process optimisation from their IT functions. In Slovakia, the emphasis is especially on cost-cutting and increasing IT efficiency. This finding comes from Deloitte’s global survey of over 700 CIOs and IT leaders from various business sectors.
CIOs across the world are operating in a challenging environment – one characterised by ever-increasing business expectations, rapid increases in the pace of business and technological change, shrinking technology adoption lifecycles and a shortage of available talent.
However, it seems that the period of continually cutting IT costs is over for most companies in the world. According to the survey, last year’s IT budgets for the majority (78%) of companies increased or remained steady, with almost half of IT resources funding change and developmental activities. Only 22% of companies reported a decrease in budgeted resources.
“In Slovakia, on the other hand, the majority of CIOs said that their previous year’s budget stayed the same or decreased. They ranked IT operations continuity, cost-cutting and responses to new business needs among the priorities of IT functions in the next 12 to 18 months,” commented Tomáš Belavý, Consulting Manager at Deloitte.
The survey’s results provide convincing evidence that CIOs must make a lot of effort to become highly efficient business partners, whilst also seeking to drive the innovation agenda. Most CIOs recognise that IT has an essential role to play in this space yet only 35% believe their IT function is considered a credible hub of innovation within their business.
“CIOs in Slovakia believe that driving innovation contributes to the reduction of operating expenses in IT, improvement of reputation and customer satisfaction, as well as the better development of company products. Seventy-six percent of respondents consider innovation as a key part of a company’s business, and 80% appreciate that IT support an organisation’s innovation strategy,” said Ivan Lužica, Consulting Partner at Deloitte.
The recruitment and retention of talent with the right skills to support new business demands is a significant issue for CIOs. Professionals who can really understand the business, think strategically and communicate effectively are those in most demand.
“Seventy percent of the respondents in Slovakia said that they experience problems recruiting staff, whether graduates or experienced staff with appropriate skills,” said Tomáš Belavý. They strive to retain staff by improving the work/life balance, offering cutting-edge project opportunities, and providing tailored training and development programs.
Almost half of CIOs claim that the biggest weakness in the business skills of their IT staff is an inability to provide efficient services and think strategically. In terms of technical skills, the biggest gaps were identified in application development, technological strategies and architecture, and technological processes.
It is clear from the steps taken by CIOs that they strive to have a more strategic impact on their organisations. A third of CIOs indicated that they do not consider their career as quite fulfilling,with a new challenge or career move being an incentive for the majority.
Over two-thirds of respondents in Slovakia have held the IT leader or CIO role for more than 3 years, with almost half having been in the role for 6 years and more.
About the Survey
The questions had over 700 responses from the Americas, Europe, the Middle East, Africa, Asia and Australia. The majority - 70% - of respondents were from Europe, with 37 respondents from Slovakia. The data was collected in 2013.
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Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte's approximately 200,000 professionals are committed to becoming the standard of excellence.
© 2014 Deloitte Slovakia