Although 43% of midsize enterprise (MSE) CIOs in North America say procurement and contract management resources are not a part of their internal IT organizations, in practice they are frequently managing a wide range of sourcing and purchasing decisions.
MSE CIOs are constantly deciding between legacy and new systems, insource or outsource, or hybrid solutions as well as handling budgeting issues. Further complicating the issue are IT necessities, such as funding a service desk. Funds might need to come from a variety of budgets in order to staff, train and supply employees with the correct software.
67% of MSE CIOs are tasked with optimizing enterprise operations
The realities of being a CIO at an MSE mean a lack of dedicated sourcing, procurement and relationship management resources. The goal should be to match projects with business goals. These CIOs must carefully implement a pragmatic approach to align all sourcing with business priorities.
“The way a project is funded depends on the business value, type, size and complexity of each sourcing solution. It is important to make this determination early in the process and align spending with intent and value to the business, as it may significantly impact both IT and business operations,” says William Maurer, research vice president at Gartner. CIOs must align their sourcing strategy with three fundamental, achievable outcomes:
Though the outcomes may overlap, CIOs should not lose sight of the main purpose of the project.