Putting your neck out, betting and embracing the right technologies to create a differentiator is one of the major challenges that R. Muralidharan, Chief Information Officer (CIO) of Syntel India is facing. In a interview with Manu Sharma of CIOL Bureau, he shares his views of his achievements as a CIO and also on what he wishes to hear from vendors during the next fiscal. Excerpts:
CIOL: What are the major challenges faced by a CIO?
R. Muralidharan: The major challenges faced by the CIO today revolves around
* Reduction in total cost of ownership of running IT
* Ensuring that IT is always driving business value and consistently being perceived as a business enabler.
* Putting his neck out, betting and embracing the right technologies to create a differentiator.
CIOL: Does your organization link IT budget with the company's performance/growth? If yes please elaborate?
RM: Yes. Syntel does link IT budget with the company's performance /growth. The total IT spend is typically pegged as a percentage of revenue.
CIOL: Can you cite any specific areas where IT has come up as an accomplishment in your stint as a CIO?
RM: There have been quite a few major areas of focus for IT over the last two years in my stint as the CIO of Syntel. There have been significant achievements across not just implementation of technologies but the entire aspect of effective deployment of people, process and technology all aimed towards the goal of being valued as a true business enabler. The areas of significant achievements cuts across all areas of infrastructure such as network, storage, systems/servers, security, telecom all supporting critical internal business applications and connectivity needed for providing services to its global customers. Apart from focus on investments in technologies, there has been a significant focus on processes and people competency development all aligned to delivering value to customers.
CIOL: Going forward, what are the challenges which you foresee?
RM: The challenges of the future envisaged revolves around more and more Green IT initiatives thus enabling significant environmental benefits apart from providing a lower cost of ownership for running IT in the organization. The other challenge revolves around betting on the right technologies for the future which will deliver the maximum benefit to the organization.
CIOL: How far have you come as regards adopting 'Green IT technologies'?
RM: Green IT initiative is a moving target and Syntel is investing significantly on ensuring the all the campuses being built to support the growth is enabled using Green It technologies. On a parallel front, there is a large effort on driving investments in terms of time and processes to ensure that Green IT initiatives are inculcated across the organization thus focusing on reducing carbon foot print.
CIOL: What will be the IT budget for the new fiscal year/ What is the growth rate over last year?
RM: Syntel has been consistently growing at around 25-30 percent and hence the IT budget has also been growing to meet these needs of the growth. Apart from the growth of the operating budget, there is also significant amount of investment being done in investing on cutting edge technologies in its campuses.
CIOL: Name the top 5 items that you expect to spent on this fiscal year?
RM: The top five areas of spend is expected to be in the areas of:
* Build out of campuses to support growth
* Business productivity applications
* Security and Compliance
* Network Optimization
* Virtualization
CIOL: Do you feel the amount allocated for IT is sufficient if yes why? If not why not? How much should you be spending?
RM: IT being typically treated as a cost center, it is extremely important that any investment made in IT should be measured by evaluating as to how it has lowered the total cost of ownership to business. As an IT company that is growing, it is not possible to lower the absolute amount of investment. Hence the yardstick for measurement is to primarily focus on reducing the unit cost of providing IT services to the employees of the organization. We have been able to successfully demonstrate this across all domains. The business value delivered in terms of contribution to the bottom line has been apt so far.
CIOL: How big is the IT staff in your organization?
RM: The total IT organization size globally inclusive of outsourced staff is around 160. This team supports the various business entities within the group engaged in the business of IT services and KPO.
CIOL: As a global company how are you networked all the centres?
RM: All the global delivery and sales offices are networked using multiple technologies such as ATM, MPLS, Frame Relay and IPsec VPN's over the Internet cloud. The core network is built over Nortel Passport WAN switches that support data, voice over IP and video traffic. This backbone enables us to seamlessly integrate into our customer networks securely while at the same time providing scalability and high availability to meet varied requirements at an optimum cost.
CIOL: Is it difficult to gets adequate funds for IT implementations?
RM: The biggest challenge for CIO's for getting funds for new IT implementations is to continuously work on reducing operating expenses as a percentage of the total budget for keeping lights ON and meet business expectations of IT availability. It is always a moving target as every CIO would like to get the maximum funds diverted for new implementations.
CIOL: What part of IT implementations plays a more prominent role? Software or hardware or networking? Why?
RM: IT needs to be viewed as a tool and not the end. Hence no individual component whether it is hardware, software or networking is individually more or less important. What business gets in a highly mobile environment in today's context is a function of achievements across all these domains to enhance the user experience level.
CIOL: The success or failure of an IT deployment should be attributed to whom, the CIO or the vendor, or is it a collaborative accountability?
RM: Though any CIO would like to always have a joint accountability or would like to blame it on the vendor to cover up for failure, I firmly believe that it is always the CIO's accountability for the success or failure of an IT deployment. One can't have a situation where the CIO is complemented for success but the stick is on a collaborative accountability or put on the vendor. The CIO is in the best situation to know what fits his business the most and also the prerogative to choose the vendor and partner most suited to be successful for his business environment.
CIOL: What percentage do you outsource a portion of your IT project?RM: To a large extent possible, Syntel works in developing and implementing core technology components internally. What is typically outsourced for BAU support is low end hardware support activities. For any IT project under implementation, Syntel works very closely with its vendor partners to ensure that an optimum solution is implemented while ensuring that internal skills are developed. This helps us leverage our experience in these domains to deliver value and thought leadership to our clients while delivering IT and infrastructure services. CIOL: Has the nature and pattern of IT adoption become more sophisticated? If yes, to what extent?RM: IT has become an integrated tool as every aspect of business relies on IT. To this extent the dependency on IT by the various stakeholders and users has become very high. Some of the complexities or sophistication arises out of the diversified business needs and this coupled with the plethora of vendors providing various technology options. The sophistication of diverse user requirements is translated into sophistication in the need for integration of various technologies to deliver business value to the end user and business. This is making the task more and more difficult for the IT organization in terms of timely delivery of integrated solutions matching the pace of the need by the business.
CIOL: Are some enterprises under the myth that modernization processes such as automation and IT deployment can take place only in large enterprises? Elaborate.
RM: Yes. Today IT is all-prevalent and an enabler for growth. Investment in the right technologies for small and medium enterprises will help them be well prepared for scale up and growth. CIOL: As a CIO what would you wish to hear from vendors during the next fiscal?RM: One of the biggest challenges hearing from vendors is always the gap between what then can deliver vis-à-vis what they actually deliver. Secondly, there are a lot of exciting technologies in the areas of virtualization, unified communication etc. which is going to key investment areas. Key areas that I would like to hear from vendors is factual information of what they can deliver which will really help in reduce the time spent on POC's and implementing thus enabling a faster return on investment and maximizing business benefit.
CIOL: With so many vendors pushing their products, how are you able to distinguish what really works in your organization?
RM: We have a very elaborate and rigorous evaluation methodology when it comes to embracing any new technology and product. One of the key aspects of product selection focuses on relevance and adaptability to our work environment and we have been able to do a decent job so far.
CIOL: So many IT products fail after being implemented Why?
RM: There a lot of elements that needs to be addressed for a successful IT implementation. Beyond just simply what the product can do which can be addressed using a one time good evaluation process, there are areas of continuous investments in the right processes and people competency development that needs to be done to sustain the implementation and also keep upgrading it on a periodic basis to meet the changing business requirements as well as technological advancements. These are bigger challenges than the product itself and this also has a longer lifespan. These are areas where most failures occur. Or put differently, this is where competing organizations adopting similar products and technologies also differentiate themselves.
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