Riding the technology wave

Spurred on by a big increase in IT budgets, a technology wave of almost unprecedented size is about to hit the UK. But are we ready for it?

Research firms such as RoperNOP Technology have pointed out that UK and US IT decision makers expect a four per cent increase in IT investment in 2002, with 80 per cent expecting that figure to rise over the next three years.

But, as many businesses fail to properly integrate new systems and develop the skills necessary to support them, the wave could have devastating effects.

Current thinking points to an 18-month window during which companies must consolidate systems and processes to prepare for the uptake of emerging tools and technologies.

Yet more than half of legacy systems specialists are over 50 and nearing retirement, and finding young replacements with mainframe skills is next to impossible.

So who is going to manage the data centres and effectively integrate these new technologies with established systems?

In some cases, outsourcing the entire IT operation is not the answer because this fails to address the fundamental issue of leveraging years of investment and training as well as the need to keep relevant skill sets in-house, which can provide innumerable benefits.

Instead, forward-looking organisations are bringing in the relevant skills to help fix, consolidate and fine-tune existing systems, most of which are far from redundant, while maintaining core skills that represent value.

The shift towards consolidation brings with it the means to be clearer about technology purchases in future, offering greater visibility to the board where previously there were only big budgets, black holes and failed projects.

Boards will appreciate buying new technology only when it is needed, and will be happy to hear about efficiency gains.

Unfortunately, boards are also quick to blame IT when things go wrong, creating a highly pressurised environment in which risks are magnified.

And when one department covertly agrees to buy an application that only loosely integrates with existing systems, IT needs to adapt.

But time is running out and, without the consolidation and skills in place, companies will be in trouble when the big wave finally hits.

Mark Simmonds is general manager of Anix Group.