Collaborating with Business Leaders on IT Spend: A CIO Playbook

As business units increasingly purchase their own technology, CIOs need to adopt a consulting mindset, strengthen ties with the business, and focus on delivering business value.

Digital transformation is as much about business change as technology; a Gartner survey shows 74% of tech purchases are at least partially funded outside IT, with 26% fully funded by IT, highlighting the rise of analytics and AI capabilities among business technologists.

Challenges arise when SaaS spend is fragmented across departments, leading to duplicated costs and complex vendor management, prompting CIOs to engage earlier in the spending process.

Steelcase’s VP & CTO Steve Miller illustrates the tension when regional offices independently buy software, resulting in redundant solutions and up to 20% cost savings when IT‑provided templates are used.

At TIAA, CIO John Elton emphasizes cultural change, positioning IT as a catalyst that aligns technology with business outcomes rather than merely delivering tools.

For successful collaboration, CIOs should invest in relationships, act as advocates for business leaders, adopt agile models, and integrate fully with business teams, as suggested by experts from UpperEdge, IBM, and other leaders.

Key recommendations include CIOs participating in executive discussions, aligning technology portfolios with business strategy, balancing security and performance needs, and establishing joint decision‑making processes to avoid “shadow IT” and ensure optimal technology investments.