Amid economic pressures, IT leaders are increasingly prioritizing cost management and profitability, with around two-thirds focusing more on these areas than in the past.
Nearly two-thirds of a ServiceNow and ThoughtLab survey of 500 global IT leaders said their performance is directly tied to outcomes like revenue impact, cost control and strategic alignment.
The report found more than six in 10 technology executives are now closely aligned with the C-suite, actively partnering in crafting business strategy and driving change management across their organizations.
Kellie Romack, chief digital information officer for ServiceNow, explained as IT becomes integral to business strategy, collaboration across the C-suite is intensifying.
She pointed out 59% of IT leaders work directly with their CEOs, a figure expected to rise to 70% within two years.
“We must put ourselves in the shoes of our C-suite peers,” she said. “We must know everything about the business units we serve and be that unifier to create the seamless, engaging experiences people want and deserve.”
Kausik Chaudhuri, CIO of Lemongrass, said he agreed CIOs must work closely with business leaders, ensuring IT is not just a support function but a real driver of business goals and new revenue opportunities.
“When IT understands the business objectives, it’s easier to prioritize initiatives that directly contribute to growth,” he explained.
He added what is key is being clear on which digital transformation projects will bring a solid return on investment.
“You don’t want to invest in technology for the sake of it,” Chaudhuri said. “There must be a measurable impact on the business.”
Romack said IT leaders must recognize that the technology strategy is the business strategy.
“Focus on quick, tangible outcomes rather than lengthy roadmaps, and then take those early wins to scale use cases that deliver measurable value and great experiences,” she said.
She explained the journey to new tech like GenAI is not a straight line, and organizations may go fast out of the box with one implementation but spend more time setting up a stronger foundation for another.
“Implement, iterate, and improve,” Romack said. “Establishing that fast cycle of deployment and improvement maintains momentum and adaptability. This generates returns and aligns to key value drivers for the business.”
CIOs, CHROs in Partnership
Many survey respondents said they anticipate deeper involvement with the Chief Human Resources Officer (CHRO) to leverage AI and other tools in enhancing employee experiences and productivity.
Technical and data literacy for employees is increasingly crucial, with 71% of IT leaders noting the need for expanded skills among staff, a figure that climbs to 84% in larger organizations.
To address this skills gap, 86% of IT executives are taking a lead role in building technical knowledge across their companies, supporting a workforce better equipped for digital demands.
Chaudhuri said when it comes to change management, CIOs need to ensure that any tech transformation aligns with the company’s overall business strategy.
“Bringing stakeholders in early helps ensure the changes fit smoothly into existing workflows,” he said. “Focusing on the human side of change is critical—addressing employee concerns and providing the proper training and support makes the transition much smoother.”
Organizational Agility in Digital Transformation
Organizational agility is another priority as digital transformation accelerates, leading many companies to decentralize IT functions.
Currently, 72% of large enterprises have decentralized their IT structures, with this approach anticipated to rise to 76% within two years.
Midsize organizations are also following suit, with decentralization levels expected to increase from 47% to 54% over the same period.
Chaudhuri said adopting agile and lean IT practices will allow teams to deliver services more quickly while keeping costs down, directly impacting profitability.
“It’s about being more responsive to changes and ensuring we’re not wasting resources on things that don’t move the needle,” he said.
Romack said the key to adoption is delivering unified, seamless, and hyper-personalized experiences, while making training and upskilling a company-wide priority.
“That drives adoption, which improves the bottom line,” she explained.
