With new technologies on the horizon and managed services gaining momentum,
the demands of CIOs are also changing rapidly. CIOs are no longer limited within
the IT domain and IT infrastructure management. "The CIO is no longer required
to just optimize IT infrastructure, but is required to play a key role in
optimizing business as well," said Arun Gupta, Group CTO, Shoppers Stop.
Companies, both enterprise level as well as SMBs, are now demanding better
cost efficiency in IT investments from their CIOs. Therefore, CIOs are now
focusing on optimizing the IT network within the parameters of the budget set
forward by their organizations. Today, decision making and recognizing the cost
benefit factor are areas of great importance for them. "A wide choice of
technologies are now available in the market. Hence, a CIO is now keen on
securing optimum RoI," Gupta elucidated.
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Arun Gupta | Sumit Roy |
In this scenario, CIOs are looking for SPs, with long-term goals backed by
sound technical knowledge. Talking about the importance of securing a long-term
commitment with an SP, Gupta said, "The SPs need to understand the needs of the
company and then approach the CIO for a project." Gupta opined, "The SPs need to
engage with their customers, primarily with the CIOs. He should have the ability
to articulate the problem and offer a better solution, integrating the current
investment plan with long-term focus and commitment."
Gupta said that the commitment put forward by the senior management has to be
communicated to the sales team keeping in mind the technicalities of the issue.
"We have a set of rewards for the SPs when the deployment is up to the mark.
Maintaining deadline is essential in the deployment process. Otherwise, the SPs
are entitled to penalties," Gupta concluded.
Sumit Roy, VP and Head-Business Applications, McMillan Publishing echoed
similar thoughts. According to him, long term goals and understanding of the
application life-cycle along with firm commitment should be the primary criteria
for selecting the SP. However, Roy emphasized on the SMB industry rather than
the enterprise segment. Besides, he said that the SPs should actively
participate in offering a solution rather than being confined to the deployment
part. "The SPs should know what the CIO wants and what the company is looking
for. He needs to have a wide portfolio, especially the latest ones in the
basket," Roy said.
With budget constraint being a tertiary factor in the decision making
process, both the speakers emphasized that primarily the long term commitments
and knowledge in the IT domain are the key factors, which are considered to
judge SPs. "SPs approach us with a point solution for a particular problem
without having sustainable knowledge about the IT infrastructure of the company.
I would like to tell all the SPs that we are not interested in a point solution
but want a long-term commitment," Roy said.
By the end of the discussion, the delegates raised concerns over branding
issues and the step-in factor. Also, the SPs sought advice from Gupta over
planning the product portfolio and approaching the CIO in the initial stages of
the project. Responding to questions on importance the top managerial employees
in the deal, Gupta concluded, "We have 35 good SPs with whom we have been doing
business for the last five years and we have occasionally met just five CEOs of
these companies. It is not the top management which is important but the
commitment and goal of the company."
Avishek Rakshit
avishekr@cybermedia.co.in