The opportunities to use technology in exciting new ways are seemingly endless, thanks to the rapid innovation and more digital capabilities than ever before. As a result, the demands on IT leaders’ time and attention are also increasing. This could easily result in a simple mistake sending IT costs spiralling upwards. Adaption and transition to cloud can lead to organizations falling into the budgeting pothole easily.
When employees can buy SaaS applications on a credit card these days, and when vendors go straight to business users by often bypassing IT, it can be tough for IT leaders to know about or control all the technology spending going on in their organizations. The CIOs today acknowledge that there is likely at least some shadow IT in their companies. But they all do their best to stay on top of all tech spending so they can vet, support, or perhaps offer an alternative to anything business users buys on their own.
It’s the CIO’s responsibility to make sure all the money is going to the right place at the right time, regardless of whether it’s in IT’s budget or not. The traditional thought that ‘I don’t like what my IT department offers so I’m going to get something else’ should then make it very important to manage that spend, consolidate it quickly and get the best pricing. There are plenty of tracking tools that will tell you where network traffic is going and alert you to, say, an unsanctioned AWS deployment. Working with the leaders of other departments and lines of business (LOB) to control shadow IT is the most effective strategy for managing non-IT tech spend while making sure IT can provide or at least support anything users really need.