Erosion of ICT executive layer puts onus on integrators

ICT reorganisation expected to continue, especially at government level

By Hamish Barwick, Auckland | Thursday, 11 March 2010
The recent reorganisation of ICT departments of governnment agencies like the IRD and the Department of Internal Affairs and private enterprises like Auckland International Airport and PGG Wrightson has meant more consulting work for some system integrators.

They say budgetary pressures, restructuring and changing business needs are driving the downsizing and even disestablishment of some roles across the executive suite. Others say their business relationship with enterprises remains the same but they are now dealing with a lower level member of the executive team, or a CFO.

Eagle managing director Gary Langford says consolidation of ICT resources has been particularly prevalent in the Government arena and among DHBs.

“It is driven by budgetary pressures. Companies do need to have good up to date IT systems and if the CIO isn’t there someone has to take that responsibility up.”

The company works with the IRD but he hasn’t noticed any change since the department disestalblished the CIO position and created two divisions – one focusing on day to day business and the other on future requirements and strategy.

Langford expects to see more government CIO roles disappear in the future. “Economic pressures are showing in all sorts of areas in the IT industry and there is consolidation happening at the vendor level. At the end of the day the client’s business needs have to be serviced whether there is a CIO there or not.”