No different than any other IT revolution, the digital transformation will create a skill shortage, a tremendous backlog of projects...and like all backlogs, budget will be the constraint in the deployment plan. Stating the obvious, IT will have a budget problem today, tomorrow and for the foreseeable future and IT will have to work harder to support and serve the needs of the business.
IT TRANSFORMATION FOR THE DIGITAL BUSINESS
“Time waits for no man”. A phrase particularly acute in the perpetual onslaught of digital transformation. We are surrounded by the philosophy that IT no longer supports or serves the business…it IS the business. It’s hard to deny and even harder to confront the reality that some enterprises are more prepared than others to embrace this inevitable change and therefore that “transformation” means different things to different people.
Corporate IT will deploy numerous technologies and build numerous applications to directly and tangentially raise its revenue, lower its costs and protect itself from internal and external threats. Accepting the obligation to deliver singular customer experiences it is clear that Commercial Off The Shelf Software (COTS) is less viable promoting the need for custom development that matches the unique needs and expectations of your increasingly sophisticated and demanding customer. Consequently, faster deployment is undeniably better.
SPEED TO MARKET DEMANDS AGILE METHODOLOGIES
And to accomplish this, the world is agreeing Agile in theory is better than waterfall in practice. Industry analysts maintain that 80% of IT projects remain pure waterfall in 2016. Waterfall was about delivering the product on time and in budget. Agile is about delivering the right product at the right time to capture the business opportunity.
There’s a need not just for technology (purchased and developed), but the people to develop, deploy and support such technology. Corporate IT will be required to augment its staff with third party resources - onsite contractors, offshore, or U.S. Onshore - as it will be unable to recruit the necessary people due to a skills shortage or is unwilling to hire the people as it does not want the fixed cost associated with a specific technology.
In either circumstance, an agile journey will include the integration of at least one third party.
U.S. ONSHORE – PURPOSE BUILT FOR THE “DIGITAL” NEED
The need for diverse, changing skills formulas are evolving and requiring nontraditional solutions deployed in a less familiar model (agile) that can satisfy the requirement of speed and proximity. Corporate America has been on an offshoring binge since 2001 which has left a skills vacuum. As IT transforms to get closer to (or immersed in) the business there is a requirement for people fluent in the language of the business. Contextually familiar with the business, comfortable with the concepts and possessing the ability to apply the technologies and intellect in a cogent fashion. Many of these positions now reside on the other side of the world physically and contextually remote at a time when the opposite characteristics are required.