19 Oct Radical changes predicted for IT groups
Orlando, Fla. – Radical changes are ahead for IT businesses, according to market research firm Gartner, Inc.
By 2011, three-quarters of IT businesses will have found their key roles transformed. Ten percent will have closed their doors, and another ten percent will find themselves relegated to commodity status.
The predictions were made this week at the Gartner Symposium/ITxpo in Orlando.
The changes are being driven by maturing IT applications and the increasing role of outsourcing more and more services for the needs of all aspects of business.
“A new organization type is emerging, one that will take the lead on information and processes,” said John Mahoney, Gartner’s chief of research for IT Services and Management. “While it will grow from an IT base, the primary focus of the new organization will be business transformation and strategic assets of information and process. When mature, it may no longer be identified as an IT organization.”
According to Gartner, by 2011 IT contributions will be cited in the top three success factors by at least half of the top performing businesses, while IT barriers will be cited in the top three failure factors by at least 50 percent of the lowest performers.
Gartner analysts predict that by 2011 IT organizations will have 20 percent fewer people, 40 percent less in-house technology roles and double the number of information, process, and business roles as compared to 2005.
Gartner analysts further predicted that many of today’s day-to-day non-business process IT functions will be relegated to an “IT Utility” function.
In a session about the current and future state of IT, Gartner analysts said that worldwide IT budgets are predicted to increase 2.5 percent for 2005 as compared to 1.4 percent in 2004, with the most significant increases coming from Asian countries.
These seemingly small increases in IT spending might prove challenging for IT professionals as CEO, board members and shareholders continue to call for innovation and increased revenues and profits. Analysts cautioned about the so called “Economic X-Factor” as unknowns such as the increases in fuels prices, terrorist attacks or natural disasters could all have a significant impact on IT spending in the coming year.
This year’s conference them was “Rapid Results for Rapid ROI” from IT professionals and their projects. Along with the oft-heard mantra that IT executives need to continue to align IT projects with boardroom strategies that produce rapid strategic change will put more pressure on IT organizations, according to Gartner.
Gartner CEO Gene Hall told a standing-room only crowd of thousands of IT professionals that gone are the days of large-scale, multi-year development projects. Management is demanding results and so are customers. ” We live in a time when the flexibility of iterative development cycles is required to respond to events in the marketplace,” he said. “So, consider three-month release cycles in order to have adequate impact on your products with the necessary flexibility.”