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Cios Case Study Essay

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One great task for CIOs is aligning their IT Strategy to Business Strategy. Some of the IT projects that CIOs propose are usually turned down since Executives do not see the value of the project from a business perspective. Moreover, since most firms treat IT as an enabler of business rather than the core business, IT is sometimes not given priority. CIOs therefore end up having to operate on a squeezed budget and do more with less; what I'd call 'killing two birds with half a stone'. Here is where Governance of Enterprise IT (GEIT) becomes a crucial skill for CIOs. It is no longer about pursuing or implementing great IT projects but doing so only for projects that accrue to business value. Proper governance requires moving the IT department from a mere 'cost center' to a 'competitive differentiator', from a 'value drainer' to a ‘business contributor'. The ISACA 2012 GEIT Survey shows that 42% of organizations were planning to increase their selectively of IT projects based on expected contribution to business. One common trend I have …show more content…

Whereas OPEX arrangements present incredible benefits, pitfalls do abound. Firstly, we have privacy implications that come with outsourcing. In my experience auditing, I have also noted that not everything vendors say is true and they can renege on the contract. So what's best? It depends is the answer! The choice of whether CAPEX or OPEX is highly contextual and many factors come into play like criticality and sensitivity of the business data, privacy requirements, cost-benefit analysis and return on investments. For example outsourcing business critical apps is a slippery terrain to tread on while outsourcing a test or development environment to the cloud is a lower risk. Therefore, the decision should only follow careful consideration and much thought. If need be, firms could involve Experts to ensure that an informed decision is

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It is a fully fledged IT and Consultation provider that delivers high status solutions to help its clients in fulfilling the technological gaps that a pose a wedge to the growth and sustainability of the organization. Best IT is responsible for designing, deploying, managing integrated services and solutions. The services rendered by Best IT enable the customers to have better investment plans with high performance from the technological aspects. The IT service provider helps its customers in strategically reinvesting the money spent in IT to increase the performance in business. Insourced and outsourced both of the criterion are met with the effective incorporation of Best IT into the business

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However, this is not always the case. According to Kahn and Hildreth (2003), outsourcing can have financial consequences as “When a service is being outsourced some of the ‘old’ overhead is gone and is considered ‘savings’, while other elements of the old overhead are replaced with ‘new’ (p.66). This would be considered a short-term cost as the effects of switching from internal to external services may initially cost more administratively than it would be to have kept a service in-house (Nichols, 2010). A long-term cost to outsourcing could consist of an agency ultimately losing more money for a service due to substandard contracts, as wily contracting companies attempt to take advantage of their clients by overcharging for services or placing hidden fees. Additionally, agencies must also be wary of how privatization will affect the public as outsourcing can “erode accountability and transparency, and drive governments deeper into debt” (Nichols, 2010).

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