Budget gap preventing UK enterprises from service-centric IT

The majority of UK enterprises are struggling to turn their plans for a service-centric approach to IT into a reality, according to new research by Ovum.

The research project, titled “Why next-generation data centre technology is needed to adopt service-centric IT delivery,” found that budget concerns were the main barrier.

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By surveying, CIOs at 100 UK organisations employing more than 1,000 staff, Ovum established that many enterprises now wish to deliver and charge for their services to internal customers on a per-usage basis. In fact, 58 per cent of respondents already have fully developed plans to introduce a service-centric approach to IT delivery.

However, only 32 per cent of CIO have managed to secure the funding required to initiate their transformational plans, despite the added agility, cost-effectiveness and accountability it would bring.

31 per cent of those surveyed believe that the lower profile of IT is to blame for the funding gap, while 30 per cent indicated that the cost of change was the key stumbling block. CIOs also claimed that, in some cases, a skills gap would make the transition to service-centric IT difficult.

Roy Illsley, principal analyst at Ovum, echoed the research findings, explaining that although enterprises are ready to embrace change, they face a number of hurdles.

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“Today’s CIOs are tasked with steering their IT departments through a major period of transformation. This involves completely reshaping the way IT services are delivered, managed and charged for across the business,” he said. “Our research clearly shows that CIOs thoroughly understand and support the change, but often lack the tools and support to make it happen. To overcome these challenges, we expect to see IT departments assuming a much more ‘federal’ role, where they utilise the capabilities of third-party service providers to scope and deliver more accountable and transparently-priced service models.”