In Part I & Part II of this series, we discussed how the legacy-skilled workforce is retiring and organisations are scrambling for much needed skills in the latest emerging, disruptive technologies and how this is a global issue, affecting CIOs around the world. In this post we discuss how those emerging trends impact on sourcing the required ICT services.  

New ways of sourcing IT services also means new skills are required. In order to meet the shortfall in ICT capabilities, CIOs are revisiting their strategic sourcing strategies to find ways of sourcing the capabilities that they need.

With the emergence of simplified ‘as a service’ models, Deloitte are seeing an increase in the level of outsourcing, as well as increases in the levels of IT spend originating outside the IT department. As a result, many more suppliers are being added to the mix. With this shift occuring, Deloitte expects to see the role of the IT department changing, and with it, an increased focus on developing greater commercial and stakeholder management capabilities and skills. The traditional function of delivering ICT services is shifting towards outsourcing even more services and understanding business needs is even more critical.

The function of managing IT outsourcing contracts and performance will need to transform its capabilities as it moves from an operationally focused function to a strategic business alignment focus. For the IT department, being able to build effective commercial outcomes, with effective vendor relationship management, will be critical for its future survival and success.

For the CIO this means finding people who are not only equipped with ICT technical skills but also business and communication skills with high levels of  commercial accumen to manage multiple service provider arrangements.

Now that we have discussed this topic in three parts, what is the bottom line for your business?

  • CIOs are only as good as their teams. The CIO needs to execute on the necessary seismic shifts from traditional IT: new skills, new capabilities and disciplines, new ways of organising and new ways of working.
  • Develop a new operating model and define the new standard for the IT workers of the future, and create talent development programs to recruit, retain and develop them.
  • Traditional credentials no longer apply in this new world. Certifications and years of experience are irrelevant in nascent technologies. CVs need to show the business problems solved.
  • A demonstrated propensity for and ability to learn new skills may become as important as one’s existing knowledge base.
  • Create a culture that supports and rewards continuous learning and helps direct IT employees toward emerging trends.

Did you miss any of our previous Blog posts? Read them here.

  • Gail La Grouw

    One thing ICT leaders are going to have to be aware of is the difference in intellectual personalities between those who are great at IT engineering type tasks, and those more business oriented. I have had the pleasure of working with both, and there is a very good reason each type is best suited to their specific tasks. Neither is better than the other – just different. Too often I see IT executives attempting to “make their IT personnel more business oriented”. This only works to a very limited extent before you start destroying the very nature of the person that makes them good at their highly cognitive IT tasks. It leads to stress and job dissatisfaction. There are other approaches that work better than trying to fit a square peg into a round hole.