Budget constraints, security concerns, and lack of talent can hamstring infrastructure and operations (I&O) professionals.
IT leaders faced with limited resources can’t deliver the enterprise growth CIOs expect, according to a recent Gartner survey of infrastructure and operations (I&O) professionals. Security risks, supply chain disruptions, talent shortages and inflationary pressures are among the factors that are impacting growth, the research firm reported.
Just 12% of 122 enterprise I&O leaders surveyed by Gartner between April and July 2023 rate their function’s performance as exceeding CIO expectations. The results, shared this week during the Gartner IT Infrastructure, Operations & Cloud Strategies Conference in Las Vegas, focused on enterprises in North America, Europe, and Asia whose growth was impacted by external threats in 2022 and 2023. The findings show that while IT budgets remain limited, I&O leaders will be challenged to achieve the desired business results CIOs expect.
“I&O leaders must support senior leadership by proactively contributing to their organization’s ability to navigate economic uncertainty,” said Cameron Haight, vice president and analyst at Gartner, in a statement. “Their destinies are interlinked, as a failure by the business to execute the proper strategy will have repercussions across the organization.”
IT budget limits
In 2023, 41% of I&O leaders’ budgets increased but stayed steady relative to inflation, while 37% of budgets were either cut or stayed steady but declined in real terms due to inflation, Gartner reported. Just 27% of I&O leaders’ budgets increased and grew relative to inflation.
“While it remains to be seen what 2024 budgets will look like, the lack of real funding growth observed to date could cause projects to be deferred into next year, causing a cascading appropriations challenge,” Haight said in a statement. “Given this scenario, I&O leaders must work smarter to achieve business outcomes with fewer resources.”
Security risks top of mind
I&O leaders aren’t just facing a lack of funding for their efforts. Gartner also questioned which external threats most concern them when trying to support enterprise growth. Not surprisingly, cybersecurity risks topped the list with 48% of survey respondents citing this as a top external threat. A close second, with 45% of respondents identifying it as a concern, is supply chain disruptions.
Rounding out the top three concerns for I&O leaders are talent and skills shortages, with 43% of IT pros pointing to this threat. Forty percent of respondents then pointed to “inflationary pressures” as an external threat hindering enterprise growth, according to the Gartner survey results.
Gartner recommends
For those leaders struggling against economic uncertainty, Gartner advises three key actions to help them survive the economic downturn.
To start, leaders must create a workplace that “improves well-being and inclusiveness.” IT leaders finding it difficult to attract and retain talent should first take a look at the environment in which employees work. According to Gartner, within I&O teams rated most effective, 84% of leaders said they had built a “welcoming and inclusive workplace.” Nearly 80% of leaders at highly effective organizations also ensured “the holistic wellness of employees by holding them accountable for personalizing their well-being progress,” according to Gartner.
Another key action incorporates enhanced analysis capabilities to measure the effectiveness of their programs and investments. While in uncertain economic times, I&O leaders must maximize the impact of technology. “According to the survey, 89% of leaders in highly effective I&O organizations formulate strategies for process transformation and optimization, and 82% identify opportunities to reduce technology costs through economies of scale or cross-enterprise synergies,” Gartner says.
I&O leaders must also become a partner in digital business activities to better link IT investments to business outcomes. Gartner found that 92% of “effective I&O leaders foster better coordination of I&O digital investments across lines of business or product lines.” Specifically, 85% apply objective analysis to translate enterprise priorities into investments and 79% provide a common language for “business and I&O stakeholders to coordinate digital investment decisions,” according to Gartner.
