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      Introducing a new role for IT: from system availability to business outcomes

      In the era before cloud technology, information technology outsourcers (ITOs) used to pitch their services as "we'll run your mess for less." This referred to the complexities of managing on-premises solutions, including data centers, network infrastructure, servers, operating systems, applications, databases, and security. The promise was to deliver the same level of software application availability (99.999%) while reducing costs and minimizing headaches through economies of scale and offshoring.

      However, the rise of Software as a Service (SaaS) has disrupted this model. Cloud software providers now handle a significant portion of the "mess," but not all.

      While they take care of the infrastructure and applications, your IT department is still responsible for configurations, data management, feature customization, deployment of new functionality, identity, and security setups, and other factors specific to your company's use of the software capabilities.

      A model of shared responsibility

      Today, IT's role has evolved. It is no longer solely focused on delivering a software application with high availability. Instead, IT's deliverable is a cloud platform that is finely tuned to drive business outcomes. These outcomes include enhanced employee satisfaction and retention, accelerated decision-making, improved demand forecasting, reduced inventory costs, minimized fraud, and decreased waste.

      IT departments are also facing increasing pressure to integrate cloud platforms with generative AI, connect various data sources for advanced analytics, and foster innovation and resilience throughout the organization.

      Now is the time for IT to become a business catalyst

      In this rapidly changing landscape, IT must transform from being perceived as a mere cost center to becoming a strategic business catalyst. By leveraging cloud technology and embracing its potential, IT can drive innovation, enable agility, and unlock new opportunities for growth.


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      Lyon Poh

      Partner, Head of Corporate Transformation

      KPMG in Singapore


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