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IT Organizational Design

The Essentials: Best Practices to Guide
IT Organizational Design

IT organizational design determines how effectively IT resources are positioned to support business goals. A well-designed IT organizational model ensures IT resources are closely aligned to the rest of the business so they can be responsive and efficient.

IT Organizational Design Trends

No one IT organizational model is the ideal, but three trends drive CIOs  to make changes in the IT function to better support the company as a whole:

  1. IT Centralization: Centralizing IT can offer reduced costs and risk, along with increased information visibility and business process consistency throughout the enterprise. However, only 20% of centralized IT organizations realize these benefits.
  2. IT Globalization: Globalization is the consistent provisioning of IT services across all locations where the enterprise operates. Delivering global IT services requires IT to address two major challenges—defining exceptions to global standards and deciding which activities take place globally and locally.
  3. IT Outsourcing: Companies move their IT operations either to outsourced service providers or, increasingly, to the cloud, with the aim of realizing key benefits, such as reducing and controlling operating costs, improving company focus on core business activities, and freeing up internal technical resources.


Redesigning Around End-to-End IT Services

Centralization, globalization, and outsourcing all offer short-term benefits, but are insufficient to meet increasing business demands for flexibility and agility from IT on their own. To truly transform IT to meet these demands, leading IT organizations redesign around end-to-end IT services.

Progressive CIO's see end-to-end IT services as a way to improve IT value communication and cost transparency, while supporting key business priorities. End-to-end IT services directly support one or more business capabilities by providing all the technology, information, and IT support required.