Rogue Spending in ICT in South Africa, 2016

Understanding the Role of CMOs and CDOs

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Rogue spending can be perceived as a ubiquitous term today. Within the IT industry, however, its definition varies from being fraud or off-policy spending to strategic spending, all the way to employees’ bring-your-own-device (BYOD) or choose-your-own-device (CYOD) trends.

A notable cause for concern is that when ICT service providers seek new revenue streams to target, it is imperative that they determine the origin of the next viable revenue stream.

While the traditional customer may have been the CIO and the IT department within companies, the focus is moving to the CMO, the CFO, and the COO. As this trend progresses, ICT service providers will need to adapt their lexicon appropriately to capture markets and revenue streams.

There are multiple perspectives that could be adopted when dealing with rogue spending. There is the wider mobility question with regard to company staff and the use of their personal devices in the work place. What started as a small trend has increasingly become the norm, where employees frequently bring their own devices to work. This, however, has been mitigated through formal structures to reduce the risk element arising from the introduction of foreign technology into the work environment. With this formalising, companies have seen increased security maintained and increased productivity from their workforce.

Another perspective that has emerged revolves around the evolving role of the CIO. Traditionally, the CIO was responsible for the determination of ICT spending within businesses. This role is now challenged by other executives in the business, where technology is an intrinsic part of conducting businesses. The rogue spend is that incremental spend occurring outside the purview of the CIO. In response to this, CIOs are seen expanding their roles within businesses, becoming increasingly strategic, as they deploy technology across their organisations.

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