The C-suite’s Dirty Little Secret: IT Investments are a Cash Cow for Consultants and Vendors
A recent survey of nearly 3,000 global CFOs and CIOs has revealed a shocking truth: the relationship between the two is becoming increasingly transactional, with IT investments serving as a cash cow for consultants and vendors. The survey, sponsored by Rimini Street, found that 86% of CFOs and CIOs believe their relationship has strengthened, but at what cost?
The CFO-CIO Partnership: A Recipe for Disaster
The survey revealed that CFOs are taking a more prominent role in the decision-making process, with 72% of CFO respondents saying they set technology budget levels. Meanwhile, CIOs are outsourcing application support to free up resources for more "strategic" initiatives. The result? A lack of transparency and accountability, with 49% of CFO respondents admitting that the positive CFO-CIO relationship was the reason for improved business outcomes.
The Rise of the IT Consultant: A New Era of Profiteering
The survey also found that CIOs are investing heavily in emerging technologies, such as AI, to address rising IT costs. But at what cost? The survey revealed that 87% of CIOs agree that historical data is the secret sauce to maximizing the value of their AI projects, but 94% state that their data needs substantial or moderate clean-up in order to succeed. The result? A lucrative market for consultants and vendors to swoop in and offer "solutions" to these "problems".
The Failure of ERP Upgrades: A Waste of Time and Money
The survey also revealed that ERP upgrades or migrations delivered the least amount of value for CFOs, with only 20% of surveyed CFOs stating that they are happy with the results of their technology investments. The result? A wasted opportunity for innovation and growth, as organizations continue to pour resources into outdated technology.
The Verdict: IT Investments are a Cash Cow for Consultants and Vendors
The survey suggests that the relationship between the C-suite and IT is becoming increasingly transactional, with IT investments serving as a cash cow for consultants and vendors. The result? A lack of transparency and accountability, and a waste of resources on outdated technology. It’s time for organizations to rethink their approach to IT investments and prioritize innovation and growth over profit.
