The Bimodal IT is here, but there are many IT Outsourcing providers that are not offering Digital Outsourcing yet.
The point is that IT Outsourcing companies, only providing traditional IT Outsourcing (Linear IT), are missing the great opportunities of being the first to offer the market Digital Outsourcing (Nonlinear IT).
Gartner has been over the last years recommending to evolve their IT to Bimodal IT. Most of current IT organizations are Bimodal, that is, they have a two speed IT organization. One part of the organization is a traditional IT, focused only on legacy systems. CIO, try to cut costs year by year from legacy systems, and move investments to new digital technologies.
That’s why it is so important to move to Digital Outsourcing. Because CIO are growing Digital Tecnologies organizations in IT, and as there are not great options available for Digital Outsourcing, they build those organizations inside their company.
In the following, let’s compare the IT Outsourcing organization with the Digital Outsourcing organization.
The IT Outsourcing organization
The IT Outsourcing organization is oriented to tecnologies. This is an IT organized in technology teams. This was possible because in the past there were limited tecnologies, so we were able to organize work teams around these technologies.
The traditional IT budget has been distributed as follows:
- Services: 23%
- Software: 20%
- Hardware: 16%
- Personnel: 41%
So, the standard IT organization has been traditionally distributed as follows:
- Infrastructure and Operations: 39%
- Application Development: 21%
- Application Support: 18%
- Service Desk: 10%
- IT Management: 8%
- Finance and Administration: 4%
And therefore, these are the roles that traditionally have been providing IT Outsourcing providers.
The Digital Outsourcing organization
In the Digital Tecnologies era, organization can’t be around tecnologies anymore, because there are a whole bunch of them. The Digital Outsourcing organization is more focused in providing innovative Digital Services.
The digital organization budget currently is distributed as follows:
- Services: 45%
- Software: 20%
- Hardware: 10%
- Personnel: 25%
As you can see, digital organizations move budget from the direct personnel to external services, so Outsourcing providers should take advantage of this fact.
The new digital organization is distributed as follows:
- Digital Product Leadership: 20%
- Data Scientists: 20%
- Software Development: 17%
- Infrastructure and Operations: 15%
- Supplier Management: 10%
- Leadership and Management: 10%
- Customer Experience: 8%
And therefore, these are the new roles that Digital Outsourcing providers need to provide to their high intensive digital technologies customer’s organizations.
The point is that as “innovation” and “time to market” are the keys in the Digital era, outsourcers cannot continue providing only commodity resources, but instead they are required to provide customers with high-talented expert roles. Digital Tecnologies organizations are no longer Cost-driven IT organizations and CIOs no longer ‘eficiency managers’. The new Digital organization requires digital business leaders. These are the key roles that Digital Outsourcing providers need to provide to their Clients.
In summary, Gartner has clearly set the path to IT evolution in the coming years, and IT Outsourcing providers need to get ready for the new times. Being able to provide the new Digital personnel will be the key for the new Digital Outsourcing organizations.
Are you ready for “Digital Outsourcing”?