THE CIO ACTION PLAN

Centres of influence

l The ecosystem of decision makers for IT investments was previously concentrated. Now we are going to see that ecosystem expand.

l You are going see expansion in the decision-making ecosystem beyond IT.

l Within I T, we are going to see other stakeholders of CXT, AI, DevOps, infrastructure teams, application teams in decision making.

l We are going to see IT embedded within various business units within an organisation.

l The role of IT is going to be, how do I deliver end-to-end services regardless of the business unit.

l The CIO is an important stakeholder, but you have digital transformation leaders, sustainability officers, senior compliance officers.

l Technology is so embedded across business units, across functions, that it is no longer an operational part of the business.

Automation

l We are going to see a shift from task-based automation to end-to-end process automation.

l With AI enabled and AI embedded within automation, that means machines are able to predict and even deliver the service.

l We have moved beyond robotic process automation.

l End-to-end I T delivery services is the number one priority.

l As a service is becoming one of the mantras for the IT organisation.

Digital sovereignty

l We are talking about end-to-end sovereignty. It is no longer just a data discussion, but a digital sovereignty discussion.

l The focus is shifting from geopolitics to geoeconomics.

l Technology is going to become an area of focus for public sector and governments around the world.

l Globalisation is reducing quite dramatically and there is a lot more nationalism, and protectionism.

l Countries are looking for how do I get more in-country value for something.

l Countries want to diversify supply chains, and not be reliant on few partners.

Demand and supply imbalance

l Two-thirds of CIOs believe that cloud economics is a big concern for them.

l CIOs say they have spent 30% or more than what was previously budgeted on cloud.

l There are question marks about what is the cost of delivery from cloud.

l CIOs will loop in vendors and suppliers for longer-term contracts.

l CIOs will look at outcome-based pricing for certain types of activities, to tie in and build partnerships with suppliers.

l We are already seeing longer-term contracts in large scale transformation programmes being renegotiated.

l CIOs expect suppliers to become more efficient at the cost, at which they are delivering the service.

They are going to put more pricing pressures on cost of cloud services. Two-thirds of CIOs that we spoke to believe that cloud economics is a big concern for them. CIOs say they have spent at least 30% more than what was previously budgeted on cloud. This means there are question marks about what is the cost of delivery from cloud.

CIOs will loop in some of the vendors and suppliers for longerterm contracts. They will look at outcome-based pricing for certain types of activities, to tie in and build partnerships with suppliers.

There will be new sets of KPIs that they will use to measure in terms of service management with the supplier company. They are going to extend this to much longer outcome-based relationships with service level agreements.

We are already seeing longer-term contracts in large scale transformation programmes being revisited, being renegotiated with a view of the new reality that we are in. CIOs also expect suppliers to become more efficient at the cost, at which they are delivering the service to the customer.

[EC MEA] How are enterprises going to move from digital transformation projects towards becoming end to end digital businesses?

[JYOTI] When we talk about digital revenues, we mean revenues that an organisation generates from digital products, digitally enabled services, using digital channels or using digital platforms. And it is going to be a seamless end-to-end frictionless engagement. You are essentially getting your end-to-end service through a digital channel and the cost of delivery of the service is going to be a lower compared to the traditional model.

We think over the next few years, the share of revenues that organisations will derive from digital products and services and platforms will outstrip the growth compared to the traditional business models. Factors like recession, geopolitics, will move, accelerate, transition towards the digital type of business. It is similar to the pandemic. You need to look at becoming lean and efficient and this is the way forward. ë