Do Businesses Really Need an IT Department?
The Evolving Role of Technology in Business
Modern technology, coupled with the power of the internet, drives a forward-thinking society that should continually seek innovative ways to streamline business processes. Some SMEs (small and medium-sized enterprises) are embracing change, exploring new methods, and questioning the necessity of a dedicated IT department.
The Shift in Structure
Instead of maintaining a traditional IT department with its own budget and management, some SMEs are rethinking and reorganising their company structures. They are questioning the effectiveness of concentrating technical specialists within a single department. As a result, these organisations are dispersing IT employees across various departments within the organisation, aiming to fuse internal business teams with tech-based teams for greater efficiency. For instance, the sales team might have its own IT specialist to address its specific needs, while the finance team would have its own IT support. This restructuring moves away from the traditional IT-business partnership, where departments had to forecast their IT needs for the year to align with company budgeting.
The goal of this change is to create a faster and more flexible IT function, reinforcing the idea that business and technology are inseparable. Particularly in the wake of COVID-19, technology has firmly established itself as the backbone of modern business operations.
Balancing Business and Technology
It is crucial, however, that organisations do not simply abandon the IT function. For example, you wouldn’t want the sales team managing firewall settings or an employee with no coding experience attempting to fix a website issue. This approach could lead to overworked and stressed staff. That said, embedding IT specialists within departments, such as placing a Python coder in accounting if that department requires significant coding support, could be highly beneficial.
Why not apply this approach to other departments, such as HR? The purpose of this restructuring is to bridge the gap between IT and business. Often, IT departments spend a significant amount of time on simple tasks that do not require deep technical expertise, while departments like HR handle confidential information that requires careful management.
Challenges and Considerations
There are, of course, challenges with this approach, particularly in larger, more established companies where legacy management styles resist change. Smaller, newer businesses are more likely to adopt this emerging IT approach, potentially viewing it as a cost-cutting measure, though they may justify it with strategic thinking. Cost is indeed a significant factor—whether a business can afford IT personnel or seeks to avoid the expense altogether.
Cloud computing has emerged as a bridge for companies that do not require a full-fledged IT team but still need support. Simple ticket systems provide practical, reliable solutions while adding an additional layer of security. However, not having a dedicated IT department could be detrimental when facing security threats such as hackers, viruses, and malware. Cloud computing also eliminates the need for on-site hardware and software, reducing both upfront and ongoing costs and mitigating the risk of theft or tampering.
Of course, if your business relies on proprietary software, on-site servers, or other specialised technology, you will still need qualified personnel to manage those systems. This was the original purpose of the IT department, but as cloud computing becomes more viable, outsourcing specialists may be a practical alternative. However, the suitability of this approach depends on your business sector. For instance, if you handle highly sensitive information, outsourcing to a third party may not be appropriate.
Ensuring Continuity and Security
Even if you decentralise your IT department, some level of centralisation is still necessary. This ensures continuity across programming languages, security protocols, and process handling, guaranteeing that digital solutions are delivered under a unified architectural framework. Beyond these agreements, IT staff should have the freedom to determine how they work best, as this restructuring revolves around flexibility.
Two organisations, one in finance and one in energy, found that maintaining an independent IT department slowed the completion of IT tasks. Today’s customers demand fast service, and if you cannot meet this demand, they may seek more agile and flexible alternatives. To maximise the potential of your employees, consider whether you want them to compete within their department, within the company, or against your business rivals.
These organisations embedded IT specialists within each department to enhance overall performance, distributing technical expertise across the company. You could even take this further by allocating IT staff to individual teams within a department. Ultimately, the goal is to create a more efficient business—one where people with both business and technical knowledge collaborate to drive success.
Do Businesses Still Need an IT Department?
For many organisations, this shift in company structure is a risky and daunting change. Managing IT resources in an unfamiliar way will require time and adjustment. However, whether companies choose to adopt this controversial idea is an intriguing question. It represents an exciting opportunity for businesses willing to explore new ways to align technology with their strategic goals.