Aussie, NZ tech leaders struggle with IT modernization

LAS VEGAS, UNITED STATES — A recent survey conducted by Tech Research Asia, sponsored by Rimini Street, shed light on the challenges faced by Chief Information Officers (CIOs) and Chief Technology Officers (CTOs) across Australia and New Zealand in balancing IT modernization efforts with broader business objectives. 

The survey, which included over 300 Chief Experience Officers (CXOs) from various industries, revealed a struggle to align IT modernization with profitability and growth.

David Rowe, EVP at Rimini Street, noted that while 98% of respondents are pursuing digital transformation, many lack a comprehensive vision, leading to digital transformation fatigue. 

Further, the survey revealed that 88% are engaged in IT modernization programs, but over half are lagging behind schedule (61%) and exceeding budget (68%).

This scenario has led to only marginal improvements for businesses, according to nearly 60% of respondents. This lack of significant progress raises questions about the ROI of such modernization efforts. 

Rowe emphasized the need for organizations to exert greater control over enterprise software system roadmaps, suggesting a shift towards optimizing existing systems and innovating around the edges.

The survey also uncovers a trend towards hybrid IT as a strategic approach, with 81% of organizations endorsing it. 

Despite the challenges, 66% of IT leaders are open to innovative IT management and modernization methods. However, the drive for operational excellence and profit margin increases often sidelines innovation.

In the next 12 months, CIOs and CTOs are prioritizing the modernization of core systems for better performance and cost management, maintaining existing IT systems, and managing budget constraints. 

A significant area of focus is the reduction of time spent on low-value management tasks, averaging 144 hours per week.

The survey also revealed external business influences like inflation and talent acquisition. With dissatisfaction reported by up to 60% of respondents with their primary IT system vendor, the role of third-party service support is highlighted as a crucial factor. 

These experts can provide stability and optimization for current systems and guide well-planned modernization efforts.