, Nov 11, 2015
CIOs Routinely By-Passed by Line of Business Are Transforming To Become Internal Service Providers to Meet Line of Business Demands
Singapore, 11th November 2015: Close to half (41%) of CIOs in Asia and about a third (31%) globally are routinely side-lined when it comes to making IT purchasing decisions, but a growing number (30% in Asia and 42% globally) are now actively embracing a new service provider model in an attempt to stay relevant to line of business colleagues, based on figures from the third annual CIO survey from Logicalis, an international IT solutions and managed services provider (www.logicalis.com).
The 2015 Global CIO Survey polled more than 400 CIOs worldwide and found IT leaders under growing pressure from Shadow IT.
The phenomenon of Shadow IT, when line of business executives by-pass the IT department and CIO in making IT investments, is now a reality for the vast majority – 91% of CIOs in Asia (90% globally) find themselves by-passed by line of business at least sometimes.
With CIOs gradually losing the battle to retain the balance of power in IT decision-making, the survey found that today, about two-thirds (68%) of CIOs in Asia (and 66% of CIOs globally) hold the balance of power over spending – making more than 50% of purchase decisions.
This shows that the threat from line of business driven IT choices is forcing CIOs to re-align their IT strategy to better serve the needs of their line of business colleagues, and transforming IT to become the first choice for all IT service provision.
Mark Rogers, CEO at Logicalis Group said: “These results suggest CIOs are at a tipping point. They are just about maintaining overall control of IT spend, but with the democratisation of IT through technology consumerisation, ubiquitous mobility, growth in the cloud and business transformational technologies such as analytics, line of business colleagues’ power in decision-making is only going to present increasingly tough challenges for the CIO and the wider business executive.
“Unchecked and often unseen by IT, this has serious implications for IT governance and security, especially from solutions designed to directly fire the imagination of line of business executives to the possibilities that technology could have on their business. ”
IT Transformation is Underway
The Logicalis survey suggests that IT leaders are seeking to retake control of IT – not by eliminating Shadow IT but by embracing it.
CIOs are seeking to transform IT departments into internal service providers – lean organisations managing service portfolios, not technology, and able to respond quickly to line of business demand.
It seems that transformation is taking shape. CIOs are freeing themselves from the day-to-day operational tasks. CIOs in Asia lead with 50% of respondents, compared to 38% globally, spending at least 50% of their time on strategic activities.
Tellingly, CIOs worldwide are now spending almost half of their time (40% in Asia and 42% globally) on activities consistent with developing and delivering the internal service provider model – ‘engaging with line of business’ and ‘scoping and provisioning new IT services’.
An increased focus on service provision is also reflected in CIOs’ responses around the balance of IT department activities, which suggest a 50:50 balance between technology management and the delivery of a portfolio of services. Indeed, around half of the CIOs (47%), both in Asia and globally, report that at least 30% of their IT is provided by external service providers.
James Tay, CEO of Logicalis Asia, said: “This signals a big change for the CIO and the IT Department. CIOs and IT directors in the region are less encumbered by legacy infrastructure and are beginning to respond to the challenges more quickly and reshape their IT functions to better reflect their business needs.
“With line of business executives having more influence over IT purchases, we could see more crossover job functions and roles as technology integrates with both marketing and finance. This integration of both technology with marketing, and/or technology with finance, could see the staff in these departments become jointly responsible for the outcomes.”
Mark Rogers concluded: “At Logicalis, our response to these trends is simple. We have to be the CIOs’ strategic advisor and provider of services and solutions that keep them not just relevant to their businesses, but able to support the innovation their line of business colleagues need, in a digitally accelerating global economy.”
Related Insights
APAC , Nov 11, 2024
Logicalis becomes the first global partner to launch Cisco XDR as a managed service
London, 11 November 2024 — Logicalis, a leading global digital managed services provider, has become the first global Cisco partner to launch Cisco Extended Detection and Response (XDR) as a Managed Service (MXDR).
APAC , Oct 26, 2023
Logicalis expands their suite of Cisco-powered managed services with the launch of Intelligent Connectivity
First Cisco Global Partner to achieve Managed Private 5G strategic designation
Indonesia , Oct 26, 2023
Logicalis Celebrates Being in the 2023 Singapore Best Workplaces in Technology List by Great Place To Work Singapore
Logicalis Asia has been awarded as one of Singapore’s Best Workplaces™ in Technology. In its third installment, a total of 33 companies over four different categories, micro, small, medium and large, have been ranked as Singapore’s Best Workplaces in Technology according to Great Place To Work®, the global authority on workplace culture. The 33 companies on the list were revealed in an online announcement.
APAC , Oct 6, 2023
Logicalis Celebrates Being in the 2023 Singapore Best Workplaces in Technology List by Great Place To Work Singapore
Logicalis Asia has been awarded as one of Singapore’s Best Workplaces™ in Technology. In its third installment, a total of 33 companies over four different categories, micro, small, medium and large, have been ranked as Singapore’s Best Workplaces in Technology according to Great Place To Work®, the global authority on workplace culture. The 33 companies on the list were revealed in an online announcement.
APAC , Sep 8, 2023
Logicalis expands their suite of Cisco-powered managed services with the launch of Intelligent Connectivity
First Cisco Global Partner to achieve Managed Private 5G strategic designation
Indonesia , May 22, 2023
Logicalis named ‘partner of choice’ for the launch of Microsoft Teams Room on Cisco devices - Cloned
Logicalis, a global IT solutions and managed service provider, today announced that the company has been selected as the partner of choice by Cisco, for the launch of Microsoft Teams Room (MTR) on Cisco devices. This announcement is made in conjunction with Logicalis’ release of its hybrid work-as-a-service offering.
APAC , May 22, 2023
Logicalis named ‘partner of choice’ for the launch of Microsoft Teams Room on Cisco devices
Logicalis, a global IT solutions and managed service provider, today announced that the company has been selected as the partner of choice by Cisco, for the launch of Microsoft Teams Room (MTR) on Cisco devices. This announcement is made in conjunction with Logicalis’ release of its hybrid work-as-a-service offering.
APAC , Mar 3, 2023
Logicalis Appoints Hannah Suar as Managing Director for Singapore
Logicalis, an international IT solutions and managed services provider, is pleased to announce the promotion and appointment of Hannah Suar to the role of Managing Director for Singapore as of March 1st, 2023.
APAC , Feb 16, 2023
Bold leadership elevates CIOs to the boardroom, according to Logicalis global study
CIOs have stepped into the role of digital evangelist and strategic advisor, according to the 2023 Global CIO Survey from Logicalis, a global technology service provider. The study questioned 1000 technology leaders and explores how the role of the CIO is evolving. This year’s survey, The Meteoric Rise of the CIO, demonstrates a monumental shift in the role of the CIO from tech implementor to business leader.
APAC , Jan 30, 2023
Logicalis CTO Toby Alcock highlights enterprise tech trends for 2023
Digital innovation, cybersecurity, workplace talent, sustainability, and recession-proofing top the list
APAC , Apr 25, 2022
Logicalis target digital-first leaders with launch of managed Intelligent Connectivity service
Logicalis, a global IT solutions and managed service provider, today announces the launch of Intelligent Connectivity, a solution designed to empower digital-first customers to improve business performance and user experience by operating with connectivity as a managed service.
APAC , Jan 10, 2022
Logicalis take the digital workplace ‘beyond productivity’ with the launch of collaboration suite
Logicalis, a global IT solutions and managed service provider, today announces the launch of their digital workplace solution designed to help organisations manage, measure and scale the collaboration experience for the digital workplace.
APAC , Jul 28, 2021
Logicalis recognised as global finalist of 2021 Microsoft Solutions Assessment Partner of the Year
Logicalis, an international IT solutions and managed service provider, today announced it has been named a global finalist of Solutions Assessment 2021 Microsoft Partner of the Year Award.
APAC , Jul 27, 2021
Logicalis recognised as global finalist of 2021 Microsoft Solutions Assessment Partner of the Year
Logicalis, an international IT solutions and managed service provider, today announced it has been named a global finalist of Solutions Assessment 2021 Microsoft Partner of the Year Award.
APAC , Jul 6, 2021
Anthony Woodward appointed Logicalis Australia CEO
Logicalis, an international IT solutions and managed services provider, today announces the appointment of a new regional CEO for the Australian market.
APAC , Jun 2, 2021
Logicalis acquires advanced network infrastructure and 5G solutions specialist siticom
Logicalis, a leading international IT solutions and managed services provider, today announces the acquisition of the network transformation and modernisation specialist, siticom.
APAC , May 4, 2021
iZeno Receives Atlassian Partner of the Year 2020: Emerging Markets
Atlassian announced today that iZeno Pte Ltd has received Atlassian Partner of the Year 2020: Emerging Markets for their outstanding contribution and achievements during the calendar year 2020.
APAC , Apr 7, 2021
Logicalis acquires cybersecurity specialist Áudea
Logicalis, a leading international IT solutions and managed services provider, today announces the acquisition of a majority stake in Áudea, a company which specialises in cybersecurity and regulatory compliance.
APAC , Apr 5, 2021
Logicalis receives Cisco DevNet Specialised Partner status
Logicalis Group, international IT solutions and managed services provider and digital transformation enabler, has today announced it has been globally awarded Cisco DevNet Specialised Partner status through DXNet, a Logicalis company.
APAC , Feb 17, 2021
Logicalis Renews Microsoft Azure Expert Managed Service Provider Status
Logicalis Group, an international IT solutions and managed services provider, has today announced its renewed status as a Microsoft Azure Expert Managed Services Provider (MSP).
APAC , Nov 5, 2020
Logicalis Asia enhances digital transformation capabilities with the acquisition of iZeno
Logicalis Asia enhances digital transformation capabilities with the acquisition of iZeno
APAC , Oct 2, 2020
Logicalis appoints Mick McNeil Vice President for Business Development as Microsoft & Logicalis build Mutual Strategic Partnership
Logicalis appoints Mick McNeil Vice President for Business Development as Microsoft & Logicalis build Mutual Strategic Partnership
, Feb 5, 2020
Logicalis Announces New Brand Positioning - ‘Architects of ChangeTM’
Logicalis Announces New Brand Positioning - ‘Architects of ChangeTM’ Logicalis announces its new brand positioning, reinforcing the company’s investment in its customers’ digital transformation
, Oct 1, 2019
Logicalis recognised as a leader in IDC MarketScape Report on Worldwide Network Consulting Services Vendor Assessment
Logicalis recognised as a leader in IDC MarketScape Report on Worldwide Network Consulting Services Vendor Assessment.
, Jul 4, 2019
MDEC Officiates Launch of Logicalis Malaysia's New Headquarters in Kuala Lumpur
MDEC officiates launch of Logicalis Malaysia’s new headquarters in Kuala Lumpur
, Dec 11, 2018
Logicalis Malaysia Announces Bernard Chiang as New Managing Director
Logicalis Malaysia Announces Bernard Chiang as New Managing Director
, Apr 19, 2018
Logicalis Appoints Dewi Sanly as Managing Director for Singapore Operations
Singapore, April 12, 2018 – Logicalis Group, the international IT solutions and managed services provider, today announced a key appointment: Dewi Sanly as Managing Director (MD) for its Singapore operations. Based in Singapore, Dewi will take on her role with immediate effect, reporting to Chong-Win Lee, Logicalis Asia CEO.
Singapore , Apr 12, 2018
Logicalis Appoints Lim Tsu Pheng as Chief Technology Officer for Asia
Singapore, April 12, 2018 – Logicalis Group, the international IT solutions and managed services provider, today announced a key appointment: Lim Tsu Pheng as Chief Technology Officer (CTO) for Asia. Based in Singapore, Tsu Pheng will take on his role with immediate effect, reporting to Chong-Win Lee, Logicalis Asia CEO.