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Outsourcing helps IT organisations focus on innovation, according to consultancy and IT services provider Capgemini’s 2008 Global CIO survey.

The research showed that IT leaders are currently torn between keeping costs down and producing business value through the innovative use of technology.

“For CIOs, managing the balance between cost containment and continuity while driving competitive advantage is a constant challenge,” says Eric Monnoyer, global leader of Capgemini’s business and information strategy practice.

The survey, which collated interviews with 400 leading IT directors, identified several traits shared by IT organisations that are able to focus on innovation. These included reporting to the CEO rather than the CFO, strong fundamental IT service delivery and an understanding of IT by business leadership.

The challenges that constrain innovation include short-term operational problems taking precedence, a limited availability of skilled staff and poor relations with the business, according to the survey.

This explains the finding that 73% of CIOs interviewed said that outsourcing allows them to concentrate on innovation by removing the need to attend on day-to-day operational matters and the constant struggle to recruit skilled staff.

“The successful IT function will transform itself into an effective conduit for accessing services in the marketplace and delivering these services to users, empowering them in their roles to achieve business goals,” said Monnoyer. “This will drive an increased business worth around the IT function as an enabler of innovation for business benefit.”

Further reading:

Outsourcing aids innovation, say CIOs

Removing operational management and recruitment pressures allows IT to deliver new business value.