For the past decade, the debate has been raging about whether information technology (IT) is a cost or profit centre. While most business leaders agree that, in theory, IT does more than keep the emails flowing and the website online, the reality for most organizations is that IT is still being managed as a cost centre. All too often, IT is still seen as one of the first stops when the time comes to trim operational costs.
In some cases, even organizations that operate on a global scale are underutilizing their IT departments, and are letting opportunities to improve their bottom line pass by on a daily basis. IT is easily overlooked while focusing on driving revenues; however, forward-thinking business leaders should start to recognize the role their IT department can play as a business intelligence centre.
Time and again, we see IT leaders reporting in to the CFO, and at the first hint of an economic slowdown, IT projects are the first to be shelved or cut completely. And it seems logical on paper – cutting unnecessary expenditures is responsible fiscal management, after all – but, too often, cost-cutting ends up hurting the bottom line. Instead of treating IT as the first fat to trim, we strongly encourage business leaders to invite IT to the table.
Organizations have recognized hidden gems within their midst just by inviting their IT leaders into their executive meetings. It may not make sense to involve IT in discussions around business issues on the face of it, but chances are IT is already connected to the issue in one way or another; you may be surprised at the technical solutions that may be readily available to address the challenges at hand.
Some organizations look to sales departments to gain a larger piece of the pie. Other organizations looked instead to optimize internal business systems to make up the difference in their top-line revenues, either through increasing efficiencies or identifying new opportunities for growth. This can mean implementing IT-driven technologies that can have a significant impact on the bottom line – like business intelligence (BI) systems, for example.
Although BI is not a new concept, a well-executed BI solution can help streamline your business while lowering costs. For example, the right insight can help make your inventory and asset management processes leaner and eliminate unnecessary overhead costs. As inefficiencies in business systems and processes can be equated to a death by a thousand cuts, this is an important tactical initiative – but it only scratches the surface of the value business intelligence, and IT on the whole, can provide.
The true value of IT goes well beyond simply maintaining the status quo; IT can provide organizations with the insight to operate more strategically. As a leading IT recruitment agency, IT/IQ has had the opportunity to support the technical initiatives of dozens of local employers.
“More often than not, the clients that work hand in hand with IT throughout their initiatives are more successful,” says IT/IQ president Feras Elkhalil. “Business leaders need to recognize the value of the people and tools at your disposal; IT leaders can help you leverage technology to find creative solutions to improve the business, to optimize systems and processes and, in some cases, to create new revenue streams. My advice to any business executive is to invite your IT leaders to strategic business meetings, and leverage technology effectively.”
While not every organization is financially positioned to overhaul its technical infrastructure, there are several ways for business leaders to capitalize on soft market conditions. Having supported business initiatives of all sizes, IT/IQ is uniquely positioned to see the effectiveness of different strategies in different market conditions and is always open to sharing insight with local business leaders.
About IT/IQ Tech Recruiters
Formerly known as WPCG, IT/IQ is a specialized IT recruitment firm providing contract, permanent and payroll services to the top employers in the Vancouver area. For more insight into the IT employment industry, or to speak with one of our team about trends we have tracked in the local market, please visit our website at www.it-iq.com.
