Why IT Shouldn’t Be a Cost Center
To realize the benefits of an efficient and innovative IT department, organizations must not look at IT as a cost center. Cost center IT is holding IT back by limiting budgets, discouraging change, and keeping the focus on back-room operations. Organization leaders are not valuing IT departments as they should be: IT should be a profit center, IT should be strategic, IT should be moving the business forward. However, as long as organizations view their IT department as a cost center, IT will not be given the funds, attention, or power to be transformative, and the organization will not realize the true value of their IT department. An IT department that is seen as a cost center is not only of little value to the organization, but it is also demotivating to the people who work in it. IT Individuals in these types of environments are unlikely to feel empowered to be innovative, and will therefore be less likely to drive change to reduce costs or increase profits. IT departments are up for the challenge of supporting their organization’s strategic objectives actively, not by just passively following commands from higher ups. If organizations allow themselves to look at their IT departments as profit centers, they will surely find value and not just high costs.
What do you think about organizations viewing IT as a cost center? Do you agree that if they shifted their view from cost center to profit center, that there would be profit to be recognized? Does this only apply to certain industries/organizations?