Role of Retained IT

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Gartner predicts that by 2015 up to 35% of Enterprise IT expenditure will be managed outside the IT department. This will mean that the role of Retained IT will change in the coming years. There are two major roles that Retained IT can play.

Firstly, the recent recession has compelled organisation to reduce wastage and make their operations leaner. Companies are also faced with an acute shortage of funding compelling organisation to limit their IT spend. Amongst such a gloomy scenario Retained IT should be able to provide operation excellence. This is also the right time for IT to identify areas that can be moved on to the Cloud Platform providing much needed flexibility in scaling up or down. Also freeing up the much needed cash required for investment in core capabilities.

Secondly, in the long term as the world comes out of recession, organisations that have been investing in innovation will have a competitive advantage. Retained IT led by the CIO should start thinking how IT can help organisations to be more innovative. With the social media slowly but surely becoming an integral part of most companies, CIOs should look at using these platforms to build new platforms for collaboration both within and outside the organisation.

In the coming years if Retained IT does not change its role from ‘Order Taker’ or ‘Change Enabler’, then it will find it difficult to add any value to the organisation. The recession has given IT the chance to prove its worth – Grab IT or Forget IT.