Efficient IT Shops: Two Trends Foreseen

CIOs continue to be under pressure to effectively utilize technology to enable businesses while containing costs, but IT’s ever-increasing portion of total capital expenditures shows what a pipe dream this is. Nonetheless, the challenge is slowly but surely being addressed by service-oriented architecture (SOA) and lean principles-two of the best management tools in a long time to control IT costs and make IT more effective.

A recent McKinsey & Company survey of 72 CIOs and other senior IT executives from North American companies with annual revenues of at least $500 million confirmed two trends we have seen in our consulting work. First, nearly two-thirds of respondents plan to migrate to SOA in 2007. SOA is already bringing organizations major benefits: large reductions in development time, lower maintenance and other operating costs, and greater flexibility to change business processes. For example, one global financial services firm has saved about 12,000 person-days in system-development time after adopting SOA and providing developers with a set of services from which they can write applications.

SOURCE: CIO Magazine

CIO Magazine

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Gary E. Smith
SOA Project Manager