In the third part of his series of blogs on the first 100 days as a new CIO, Alex Blues, Head of IT Sourcing at PA Consulting Group, explains why CIOs must ensure all IT services are being resourced and delivered as efficiently as possible.

Once you have convinced the rest of the board to take responsibility for their own IT costs, you can’t just turn your back and think ‘job done’. It is your responsibility to ensure that you are delivering the services in the most efficient manner. The chances are you will have a mix of in-house capability, outsourced services, contractors and consultants. I am not going to talk about how you must have a sourcing strategy, that is a given, but I will talk about the more practical elements of what to do.

The current market and emphasis on value for money is a golden opportunity to get the most out of your external suppliers. The temptation, and indeed the trend, is to squeeze suppliers on rates so that you can wipe money straight off your bottom line. This might achieve short term savings and make your bottom line look good, but it is does not look at the long term opportunities.

Instead, you should use the current climate as an opportunity to talk to your suppliers and look at ways of providing a win for both parties. Be honest with them, they know their business and want to protect theirs as much as you do. Work out strategies together to cut costs and review the major cost elements of contracts and how you are getting Value for Money. You’ll be amazed at how cooperative suppliers can be when they feel part of a process.

Use consultants wisely, there is a temptation to just cut consultancy spend. What you should really be doing is identifying where consultancy can add value. To maximise value, you should look at your contracts with consultants, for example you could have a performance related and risk reward deal and share the benefits.

Next it is time to look internally at your organisation. It is tempting to come straight in and start redesigning your organisation in line with ‘best practice’. However, organisations are a living entity and they evolve to suit the circumstances. To suddenly change the organisation without looking at the circumstances will lead to failure. I am not advocating not changing, but you need to understand why things are the way they are and act accordingly.

Once the new organisation is designed, you should perform a review of capabilities in line with new roles. You must not be constrained by existing skills and people and should identify any gaps in capability. You should plan the means of filling these gaps, and consider mentoring - internally or externally – to fill these gaps. One of the best Service Delivery Managers I know learnt from an interim, supporting them as they delivered a Service Improvement Project and taking over upon completion.

In the fourth of this four part series, Alex Blues returns to discuss capital expenditure, project management and the need to be seen as more than just an IT functionary www.paconsulting.com