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IT and DX Success – Biggest Budget Challenges

DX in IT – Biggest Budget Challenges
Digital Transformation

IT and DX Success – Biggest Budget Challenges

Digital Transformation (DX) is a buzzword all around the globe; however, is not short of challenges. Of the many challenges faced by enterprises, budgeting plays a key role in deciding the success of new digital initiatives. 

The role of IT is significant in modernizing enterprises with advanced technology and digital solutions. 77% of reports indicate that IT must be part of the strategic DX discussion: which includes budgeting for long years of the digital journey, with an implementation partner to ensure closure. 

The budget problems could be of different reasons; however, some of the common reasons include:

  • Ad-hoc vendor selections
  • Different vendors for different solutions
  • Lack of vision during budget planning
  • Increased total cost of ownership 

Poor vendor selection

Selecting a DX partner for your digital journey will become a disaster if they possess a limited or average capabilities. Even experience and expertise over the most advanced technologies like RPA, IoT, Mobile App Development, AI matters and evaluating their proven track record is equally important. 

Involving the IT team or CIOs in the strategic and technology-related discussions will help your business overcome this challenge. Partnering with the right vendor is extremely critical for successful closure of the DX program.

Utilizing different vendors for DX program

DX involves transforming different processes using solutions. A common mistake made by most IT people today is utilizing multiple vendors for providing solutions. This not only impacts the budget of the company but also can produce lots of challenges in coordinating the vendors and helping them align with your business goals. As different service providers have different culture, it is hard to get a unified and collective output from them. 

SEE ALSO:”IT and DX Success – Addressing Employee Buy-In Challenge

You can resolve this challenge by hiring a single vendor having a full-stack development across different technologies and solutions. This will reduce the onus on the shoulders of IT as they have to interact only with a single service provider to complete the project. Such an approach will prove cost-effective and ensure your DX program is completed on-time. 

Lack of vision during budgeting

Many DX failures are due to the lack of vision towards budgeting during partner consultations. A few CIOs believe in going for a quick fix to address DX challenges rather than seeing the big picture, and this often results in increased costs and delayed completion. 

Having a CIO involved in the discussion would help your business envision the DX initiative in the long run and help you with relevant solutions to make the transition seamless to every stakeholder involved. 

Increased total cost of ownership (TCO)

The total cost of ownership associated with DX will double if the vendor selection goes wrong or your IT is running out of resources or possess only limited digital skills. As IT plays a critical role in understanding your existing ecosystem and aligning to the new objectives, CIOs must drive the service partner discussions to reduce the TCO. 

Also, CIOs must ensure whether they are powered with the resources to perform the documentation and other support programs to ensure a smooth transition. With the right service provider on your side, CIOs don’t have to focus too much on the DX success, as their team with expertise and experience would help the business overcome budgeting challenges. 

Simply put, having a right vendor will not only reduce the cost associated with DX initiative but also accelerates the transformation process. 

Looking forward to partner with a service provider with a proven track record and expert skill sets? Let’s talk.

 

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