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CIO-on-Demand service or an Outsourced CIO may be a fairly new terminology in the Indian scenario and it may sound conceptually similar
to outsourcing the IT needs of an organisation, but the difference lies in the core essence of the service rendered.
The service provides an affordable way to inject a blue chip CIOs leadership to the business of an SME that cannot afford a full-timeCIO, as part of an interim management.
The service works with the business to manage the demand for technology needs in a timely manner. It is an on-going management service for SMEs in need of direction to bridge the gap between business and technology. It helps organisations align themselves between business strategy and IT strategy by providing a roadmap for the IT function of an organisation backed by an offshore team to guide it forward
The need for CIO-on-Demand services
Every organisation needs somebody who can join in on calls for vendor or service provider selection, to make sure that the organisations interest is been looked after Most SMEs do not require a full-time IT Head. Even if they hire a full-time CIO, the technical requirement is not sufficient to keep the CIO occupied full-time; hence he is often also assigned non-technical responsibilities, which in turn diminishes the core job profile of a CIO.
On a broader scope, the services offered by a seasoned CIO range from strategy planning to defining a roadmap for IT acceleration, to defining the annual IT budget that is aligned with business priorities, to something as simple as to helping select and implement a project. Categorically, the consultancy services offered by a CIO for a products core could include: Business process review to identify the gaps in processes and increase overall
productivity. Business-effective infrastructure readiness assessment for the need to simplify. Automate and standardise processes to improve service levels, increase performance while reducing downtime and cost. IT service desk for consistent, efficient service management issue resolution. Datacentremanagement for increased productivity, efficiency through better SLA management to upkeep/maintain uptime of power, servers, applications, database, security solutions, network, etc.
End user support to provide a heterogeneous environment, resulting from silo-focused system deployment. Database services/management for secure and accessible services without building additional infrastructure or increasing administrative workload. Application management servicesfrom
SLA maintenance of application availability to cross integration for better productivity, delivery and performance.
IT project management for achievement of business goals. Managed security services to increase responsiveness, scalability, flexibility for ensured data privacy in an increasingly complex and dynamic security threat environment. Network management for monitoring multi-location activities; maintain heterogeneous network topology for improved availability of the business systems. Inventory management for monitoring and managing IT assets for optimised cost and better utilisation. Develop and manage an annual IT budget plan that is aligned with business priorities.
Changes in the IT department over time
In the 90s, IT was merely an ElectricalData Processing centrewithin each department (the EDP section), which reported to line managers from middle management, who reported to top management.
The command flowed from top to bottom and in reverse order. EDPs core job was handling MIS and looking after hardware issues ofthe organisation.
This approach changed in 2000 when the IT department became a facilitator towards achieving the strategic goals of the business. This was when Organisational Integrated Application was implemented; all departments were on a single platform and monitored accordingly. The IT Head came into the picture and now worked on guidelines given by top management, in tandem with peers.
Today, IT is a full-fledged department which reports to the CIO who is part of top management.
SMEs to a certain extent still followthe historical IT approach, although some have adopted other approaches. It is not feasible or affordable for an SME to adopt a layered approach. And this is where an outsourced CIO comes in a modern-day IT approach.
The outsourced CIO is an outside entity executing the role and all the responsibilities of a full-time CIO, working in tandem with the top management and not as part of a business approach layer; working in conjunction with the business owner / share holder to meet and streamline the IT roadmap to meet the strategic business goals.
The Business Value of a CIO on Demand
From an operational point of view, an organisation gets quick answersto questions on what products or applications to opt for and getsproper feedback pertaining to them.
They help the organisation gain access to knowledgeable worldwide and industry-specific resources. They serve as a ready performance reference for a service providers assessment and deployment of services. With hands-on project management, licensing and pricing policy of vendors, they provide the best technology decision support.
With a vast experience pool, they package best practices to handle specific projects based on discussions with peers of the organisation on past project handling techniques. They enhance the business value of the implemented project by implementing project portfolio management techniques which ultimately helps the organisation move towards a leaner, meaner IT organisation.
On the strategic front, they act as a catalyst that helps devise a long-term IT strategy roadmap, aligned with technological needs, to serve the business.
They conduct a pencil review of strategic documents by organising IT and Business Integration sessions. They help chart a service providers relationship roadmap based on SLA terms with the business.
The ultimate outcome of their services is package implementation of total cost of ownership to position the business value of the technology investment.
The author is Deputy Manager (System), of The Calcutta Medical Research Institute.
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