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Investing for growth
Put your money where your growth is
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Even the largest companies have struggled to achieve scale and expertise in their IT organizations. A recent study of financial service sector IT organizations by the IBM Institute for Business Value, for instance, found that one third of internal IT projects run over time, one fifth run over budget and one fifth fall short of planned functionality.
Sourcing alternatives, along with new IT management solutions not only offer expert, cost-effective IT operations at massive scale. They also provide an opportunity for progressive CIOs to drive the new innovation agenda. How? Sourcing alternatives offer an opportunity for progressive CIOs to create a self-funding model for new opportunities.
Despite the demands of the CIO's new and elevated organizational role, freedom of action continues to be circumscribed by the responsibilities of maintaining legacy systems and the realities of tight budget and resource constraints. IT sourcing alternatives give the CIO the flexibility to bridge old and new responsibilities.
In IBM's experience, alternative sourcing models have the potential to deliver cost savings of 15 to 25 percent, or even more. With IT budgets virtually flat, these savings can be used to invest in new capabilities. In this way, the organization's own IT infrastructure can be put to work to fund business enablement, innovation and top-line growth.
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