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Senior Executives Discuss Top IT Problems
Lack of IT staff availability and technology service delivery issues are some of the main problems that continue to affect organizations worldwide, says the latest survey by the IT Governance Institute (ITGI), IT Governance Global Status Report ― 2008 (PDF, 6.85 MB). The purpose of the follow-up survey, which interviewed 749 chief executive officers and chief information officers in 23 countries, is to track IT governance trends and problems, determine the actions taken relative to IT governance, and identify the tools and services used by organizations to help ensure effective IT governance.
This year's survey noted an increase in certain negative trends. For instance, the majority of respondents ― 58 percent ― cite having an insufficient number of IT staff compared to 35 percent in a 2005 ITGI survey. In addition, nearly half of executives ― 48 percent ― say IT service delivery problems remain the second most common problem, while 41 percent report having a low or unproven return on investment for high IT expenditures, up from 30 percent in 2005. Moreover, 38 percent point to problems relating to staff with inadequate skills since 2005, and 35 percent have problems with outsourcers, a 12 percent increase from 2005.
"These risks can destroy business value by adversely affecting customer service or cost-efficiency. Almost half of the executives surveyed were lukewarm about IT investments delivering value, so this is an area where audit can recommend improvements that can deliver significant business value," says Lynn Lawton, international president of the IT Governance Institute.
In terms of positive trends and areas for improvement, the survey found that:
Finally, the implementation of IT governance-related activities varies around the globe. For instance, the percentage of organizations that are in the process of implementing or have already implemented IT governance in different regions is 27 percent in South America, 44 percent in Asia, and 50 percent in Europe and North America.
"The bottom line is that many organizations around the world are needlessly sacrificing money, productivity, and competitive advantage by not implementing effective IT governance," Lawton adds. "Internal auditors can use the results of this year's report as an input to planning."
For instance, "the survey highlights the risks faced by IT management globally and can be used to inform the enterprise risk assessment, and the top three risks identified in the survey could all be areas of focus for risk-based internal audits," she says.
The results can also be used for benchmarking and self-assessment of management practices (e.g., frequency of IT issues or activities on the board's agenda, IT governance maturity level, the IT department's communications to the business, and current IT governance practices).
"Auditors can use the survey when putting forth their recommendations to improve the relative position of their organization against the global benchmark or to recommend solutions and frameworks to assist with managing IT risk," concludes Lawton.
For a complete copy of the IT Governance Global Status Report ― 2008, visit the ITGI Web site.
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