The Reorganization of IT

MikeA shift in IT is placing a bigger focus on meeting the needs of the business – and a cooperative relationship between the business units and IT. Many CIOs are addressing this shift with a reorganization of the IT department.

According to “IT Reorgs on the Horizon,” from CIO magazine, 65 percent of IT organizations are centralized, 27 percent are federated and 7 percent are totally decentralized. In a centralized organization, CIOs control the IT budget and technology assets, while in a federated organization, IT decisions and assets are divided among the business units.

With an increased focus on addressing the needs of the business units, more CIOs are looking towards the federated approach, placing some members of IT directly into the business units they are serving.

But, that’s not the only change CIOs are considering: changes to the organizational chart of IT are also taking place. Most (38 percent) IT departments organize their staff under VPs for technology areas, many prefer organization by business function (currently at 27 percent), but organization by business process is on the rise (18 percent) – and a study from IDF Enterprise, “Future State of the IT Organization,” asserts that CIOs consider this the best model for the future.  

The organization of the future IT department could be quite different than it currently stands – much more integrated into the business. Our Business Value of IT offering supports the notion that IT must work more cohesively with the business to provide a valuable impact, so this seems like a natural shift in the right direction.

You can access the article here.

Do you think this potential shift in IT is necessary? What recommendations would you make for CIOs looking to reorganize?


Mike Harris
DCG President

Written by Michael D. Harris at 05:00

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