CIOs Move From Cost Center to Innovation Hub
 

A global survey of the CIO and CTO community shows the transformative role tech leaders play in the modern enterprise.

Business technology leaders have stepped out of the shadows of being a cost center and into the spotlight as key change agents. The 2019 Harvey Nash KPMG CIO Survey reveals that technology leaders are better placed in the ranks of their organizations than ever before.

The adoption of next generation technology by major enterprises has enabled CIOs and CTOs to become some of the most crucial members of the senior leadership team, the global survey of 3,645 COs finds. And the next round of technology adoption will increase the responsibilities and demands on CIOs. As a result, the survey finds that investment in technology is increasing.

Over half of respondents to the survey reported an increase in their technology budget—the largest increase since 2010, the start of a much-needed economic recovery following the credit crisis of 2008. This budget increase is being spent not only on technology, but also tech talent, with 51% of CIOs stating they expect to increase the headcount of their IT teams.

Efficiency Drivers

Although technology leaders have been given a golden opportunity to drive revenue, organizations still look to technology for continued cost reduction. Over 50% of CIOs report that their boards expect automation to improve business efficiency, and a fifth of respondents said they had an AI or machine learning (ML) implementation in place. The adoption of technologies like AI and ML are posing challenges to corporate culture as boards worry about talent retention.

“It will require an organization to focus on shaping and integrating a collaborative future workforce that combines human and digital labor,” the survey report states.

Cloud computing continues to be a cornerstone of business and technology innovation. 88% of organizations surveyed state they are confident about their use of cloud, an increase from previous survey results. 

Security & People Minded

Over half of CIOs report that cyber security is rising up the business agenda, with 56% stating it is a board-level priority, up from 49% in 2018. Though more important to boards, the survey data reveals organizations are combating cyber-crime with greater success. The number of cyber-attacks on organizations has “flattened out” since 2018. But it is not all good news. 83% of CIOs globally report that cyber security is limiting their ability to innovate, and 14% feel cyber risk is a “burden.” But that burden can drive product innovation, and 91% of global CIOs expect data privacy and trust in technology services to be vital to their services and for attracting and retaining customers.

With an increased focus on how technology is transforming organizations, the survey reveals business technology leaders are concerned that they will struggle to find the talent required to deliver the promise of new, innovative technology. The survey finds that skills shortage concerns are at their highest since 2008. 

The Harvey Nash KPMG CIO survey states that larger organizations with budgets over $250 million struggle the most with retaining technology talent.

“Our research tells us that technology professionals value innovative projects and learning new skills above anything else, including salary and job security. Smaller organizations offer this,” the report concludes.

“IT is constantly changing, so it would be very extraordinary if there was not a gap in skills,” says CIO Paul Coby from Johnson Matthey, an international metals and manufacturing firm.

Harvey Nash and KPMG surveyed 3,645 CIOs in 108 countries, collecting 3 million data points. The respondents represented a quarter of a trillion dollars in IT budget.