CIO OPINION
It can bring far wider benefits than CIOs typically consider .
Peter Reed , Lead Advisory Partner at Headforwards and former AXA Health CIO
How outsourcing can enable CIOs to innovate in challenging times
Peter Reed , Lead Advisory Partner at Headforwards and former AXA Health CIO , discusses how outsourcing can empower CIOs to drive innovation during challenging periods .
Since the UK Government announced its plans to increase employer National Insurance Contributions from April 2025 , capacity and capability challenges for CIOs may not have changed , but it has made them more expensive . Technology leaders across all industries will therefore be considering their cost-optimisation tactics as well as looking for new affordable ways to continuously innovate .
As technology leaders face economic pressures from multiple avenues , organisations need the option to scale without increasing permanent headcount . One solution for this – outsourcing – is nothing new , but is typically classified as a cost-cutting solution , as a way for a business to reduce their overheads . However , it can bring far wider benefits than CIOs typically consider , to keep their organisations digitally relevant and up to date with tech advancements and give competitive edge .
Outsourcing for innovation
Fundamentally , the meaning of outsourcing has changed over time . Rather than outsourcing in the traditional sense to reduce the cost of running the business , outsourcing for specialist skills such as integration and orchestration is now a strategic tool for innovation and agility . An outsourcing partner that ’ s used for running large operational processes isn ’ t necessarily a specialist partner that can develop more complex software , or support complex data and
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