costs in IT, and IT has the capability in itself to rationalize its costs because we are IT, but I think we need to lead the way in looking at costs at our end. There are a lot of old fortresses that need to be broken down and I think IT could be saying ‘okay, we could actually have some good ideas to lower our maintenance.’ We have to show our value and cost-saving strength. The idea of looking to outsource everything into a country where salaries are low is not going to cut it any longer.” Avoiding the squeeze during the recession has been of paramount priority for a number of departments throughout the banking, fi nancial and commercial world. IT managers may be disadvantaged by their innate lack of self-promotion, but while they may be meeker by nature, they should be able to use their smarts to show their true worth in a number of quantifiable and useful ways. “We have managed to prevent our IT organization from being squeezed by simply being incredibly efficient and as transparent as possible,” says Rakesh Nigam, Global Head of Technology for Barclays. “There was certainly a time a while back when people thought that technology was just a pure cost, but fortunately that has been turned on its head by the value that we demonstrate, the natural advances in technology and the increasingly important role technology now plays in the entire banking process.” Forced to act resolutely as a result of the fiscal constraints the current fi nancial climate is imposing upon banks, business leaders have to make decisive, authoritative actions and are understandably exerting more pressure on every department within their organization. The trick, says Nigam, is to enter into a business conversation that is sensible and balanced. “You can’t leave yourself to get bullied or to get pressurized into going against your principles. You need to stick by them and demonstrate that you know what you are doing while also recognizing your inner commercial environment.”
Negotiating IT Playing the role of businessman, HR manager and IT specialist all at once could have a potentially draining effect, but it is a challenge that Nigam believes needs to be met by IT heads in order for their departments to survive. “We do get squeezed; we’re asked to do things more efficiently; we’re asked to look after our budgets and so part of our exercise is to respond to these pressures by looking at how things can be done quicker and more cheaply, whether that be by using different technologies – which is a decision someone in IT is always comfortable with; or by using third parties or cheaper locations.” While the latter is a decision that is traditionally taken by different departmental heads, Nigam thinks that CIOs and IT heads should be the ones making such calls. “The term ‘run the bank’ relates to what needs to be done in order to keep the lights on as it were, and there are many ways you can do that more efficiently by using different technologies but also asking other companies to maybe come in and provide support, using services or tool sets or different components from other areas that
FAST FACT Average IT salaries in the banking industry range from $60,000 for a median IT position to $100,000 for project leaders. A CIO’s average salary is $130,000 (Source: InformationWeek Analytics’ Annual IT Salary Survey) have developed and are more mature than the ones you have at your disposal, bringing those in and sharing a framework of support.” Such decisive outsourcing not only saves on cost but also demonstrates business nous, which is an invaluable commodity to possess during any recession and is something that business leaders will certainly take note of. CIOs can go one step further, too. “Whatever money has been saved from your initial cost-cutting initiatives could be put back into the company as a longer-term investment, which will allow your department to develop more and deliver more,” says Nigam. “Th is puts a level of pressure on your development community because they need to make sure that they do not deliver poor quality soft ware that can be expensive to look after moving forward, but to be able to demonstrate this constant cycle of improvement in your department is invaluable.”
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