As the technology landscape continues to evolve, so too must the approach to managing and structuring tech talent. Chief Information Officers (CIOs) today face the challenge of navigating a complex web of in-house teams, strategic partnerships, and shifting needs, all while ensuring that their organizations remain agile, innovative, and cost-effective. The question of how to structure tech talent within an organization—what stays in-house, what goes to partners, and what should be phased out—has never been more pressing.
In this blog, we’ll explore how CIOs can strategically structure their tech teams for success in the future technology ecosystem, considering various factors such as business objectives, technology trends, talent shortages, and the shift towards digital transformation.
The Changing Role of the CIO
The role of the CIO has evolved significantly over the years. No longer just responsible for managing IT infrastructure and ensuring systems run smoothly, today’s CIO is seen as a strategic partner in driving business transformation. With the increasing adoption of new technologies like artificial intelligence (AI), cloud computing, the Internet of Things (IoT), and blockchain, CIOs are tasked with aligning technology with business outcomes, improving operational efficiency, and creating new revenue streams.
As digital transformation accelerates, the traditional approach to managing tech talent is being disrupted. CIOs must adapt by creating an agile, flexible, and scalable tech talent ecosystem that can keep pace with the rapid rate of change.
What Stays In-House: The Core Competencies
When deciding what tech talent should remain in-house, CIOs must focus on areas that are core to the organization’s business objectives and strategic direction. These are the areas that directly contribute to the organization’s competitive advantage, differentiation, and long-term growth. Some of the core competencies that should remain in-house include:
- Strategic Leadership and Innovation
The leadership team driving the organization’s technology vision and strategy must be deeply embedded within the company. While partners may provide valuable expertise and resources, the in-house tech team must be the one driving innovation, setting the technology roadmap, and making decisions that align with business goals. This team should consist of senior leaders such as the Chief Technology Officer (CTO), Chief Data Officer (CDO), and heads of key technology functions, such as cybersecurity and data governance.
- Data Management and Analytics
Data has become one of the most valuable assets for modern organizations. Managing and leveraging data for strategic decision-making, customer insights, and operational improvements requires specialized expertise. In-house teams should be responsible for data governance, data architecture, and ensuring that the organization adheres to privacy and security standards. With the rise of AI and machine learning (ML), an in-house team of data scientists and analysts will be essential for developing models and insights tailored to the organization’s unique needs.
- Security and Compliance
As organizations handle increasingly sensitive data, cybersecurity has become a critical focus. While managed security services and third-party vendors can play a role in mitigating risks, core security functions—such as incident response, threat detection, and governance—must remain in-house. The risk of cyber threats is too high, and having an internal security team ensures that the organization is prepared for rapid response and has the in-depth knowledge needed to safeguard critical assets.
- Customer-Facing Technology
In-house teams should also manage customer-facing applications and platforms that are central to the organization’s business model. Whether it’s an e-commerce platform, a mobile app, or a digital service, these technologies play a pivotal role in driving customer engagement, satisfaction, and retention. The internal tech team will have the best understanding of the company’s goals and customer needs, allowing them to iterate and innovate rapidly to meet market demands.
What Goes to Partners: The Expertise You Need, When You Need It
While certain competencies should stay in-house, it’s important to recognize that no organization can have expertise in every technology domain. This is where strategic partnerships with external vendors, consultants, and service providers come in. By leveraging partners, CIOs can tap into specialized expertise and scale their operations without overburdening internal teams. Here are areas where partnerships can play a critical role:
- Cloud Infrastructure and Services
One of the most significant shifts in the tech ecosystem has been the move to cloud computing. Public cloud providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) offer scalable, flexible, and cost-effective solutions for hosting infrastructure, running applications, and managing workloads. Instead of building and maintaining on-premise infrastructure, which can be costly and resource-intensive, organizations should partner with cloud providers to handle the heavy lifting of managing the technology stack.
For many organizations, cloud platforms are becoming the backbone of their entire IT ecosystem, allowing them to focus on core competencies while outsourcing infrastructure management and optimization.
- Software as a Service (SaaS) Solutions
Many organizations are moving to SaaS models for their enterprise applications, such as customer relationship management (CRM), enterprise resource planning (ERP), human resources (HR), and marketing automation. These platforms provide the flexibility of subscription-based access and reduce the need for extensive in-house development or maintenance. By partnering with SaaS providers, organizations can quickly implement and scale solutions without the overhead of managing the software internally.
- AI and Machine Learning Expertise
While AI and ML are increasingly important for driving innovation, building and maintaining these systems requires specialized skills and resources. Many organizations partner with AI-focused companies or consultants to help them integrate advanced analytics and automation into their operations. This partnership allows the in-house team to focus on strategic use cases while benefiting from external expertise in designing and deploying AI models, data pipelines, and machine learning algorithms.
- IT Support and Managed Services
As organizations grow, the demand for IT support and ongoing maintenance increases. While larger organizations may still have in-house IT support teams, smaller businesses and those without a dedicated IT department often partner with managed service providers (MSPs) for help desk support, system monitoring, and network management. These partners can provide cost-effective solutions to ensure that the organization’s IT systems remain operational without requiring significant in-house resources.
What Needs to Be Phased Out: Redundant or Low-Value Functions
In the fast-evolving tech landscape, some functions may no longer be necessary or may be less critical to the organization’s long-term success. These areas should be carefully evaluated and potentially phased out or replaced by more effective solutions.
- Legacy Systems and Infrastructure
Many organizations are still dealing with outdated legacy systems that are costly to maintain, slow to evolve, and incompatible with newer technologies. These systems often hinder innovation and agility. CIOs should prioritize the replacement or modernization of legacy infrastructure through cloud migrations, system upgrades, or the adoption of new software solutions that offer better functionality and scalability.
- Manual, Repetitive Tasks
Automation is becoming a core principle of digital transformation, and manual, repetitive tasks should be phased out in favor of automated processes. This includes everything from manual data entry to legacy business workflows that can be streamlined using robotic process automation (RPA) or AI-driven solutions. By automating low-value tasks, organizations can free up their internal teams to focus on more strategic, high-impact work.
- Non-Core Development Projects
As organizations prioritize innovation and business transformation, they must carefully assess which development projects should be handled in-house and which should be outsourced. Non-core development projects, such as custom-built applications that don’t directly align with the company’s strategic goals, may be better suited to external vendors who can deliver faster and more cost-effectively.
Conclusion: Structuring for Agility and Growth
The future technology ecosystem is marked by rapid change, increasing complexity, and a growing reliance on external partners and specialized expertise. CIOs must strike a balance between retaining critical skills and capabilities in-house, partnering with trusted vendors for specialized services, and phasing out outdated or non-essential functions.
Ultimately, the key to success lies in creating a flexible, agile, and scalable tech talent ecosystem. By focusing on strategic leadership, data management, security, and customer-facing technologies in-house, leveraging cloud infrastructure, SaaS solutions, and AI expertise through partnerships, and phasing out legacy systems and manual tasks, CIOs can position their organizations to thrive in the digital era.
As the technology landscape continues to evolve, it’s clear that the role of the CIO will become even more critical in shaping the future of business. Partnering with Right Skale in making smart decisions about what stays in-house, what is outsourced, and what should be phased out, CIOs will be better equipped to lead their organizations into the future, driving innovation, efficiency, and growth.
