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Who is the customer? February 24, 2011

Posted by Mark Hillary in IT Services, Outsourcing.
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Possibly the most important discussion I had at the Nasscom event in India recently was around the changing role of the CIO, and how this changes the whole relationship between the client and the service supplier.

The CIO is an evolving role. It is becoming more strategically significant and is focusing more purely on information use and flow – which means that there is less emphasis on the purchase of IT systems.

At the same time, services are getting easier to buy. Companies are offering complete solutions that can be delivered using a web browser so absolutely no infrastructure or software is required – beyond Internet access.

So business heads are getting far more involved in specifying what they need and even going to the market and purchasing it without any involvement from the IT department. In fact, if there is no IT infrastructure requirement then why would the IT department need to know what is being purchased or used by the business?

This has always been the case in BPO. The person buying a new HR system was the HR director – not the CIO. They might purchase a system in communication with the CIO, but ultimately the decision was that of the business line head.

Now the same is applicable for a wider variety of systems – even technical systems that would previously have needed agreement from the CIO.

Does it make the CIO redundant as a function? I don’t think so as there still needs to be a strategy around infrastructure and security, but this does signal a complete change in the way companies use IT. The business user not only has the budget, but the power to buy, install, and maintain their own systems without any IT department interference.

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