Offshoring: Friend or Foe?

When the contentious topic of offshoring services was raised, NAB's Tredenick set the record straight that is an option, not a panacea.

"I think offshoring is talked about in many ways and it is sometimes seen as a panacea, a bit like outsourcing was seen a while ago," she said. "It's sometimes seen as 'something that's not for us', but the truth of the matter is that it's no different to any other strategy I employ to deliver a return to the business."

Tredenick said there are times when offshoring is the right thing to do and it's an advantage to do it and there are times when it won't work and should not be done at all.

"It's a useful tool and one of an armament of tools around how business and IT executives need to gain competitive advantage and we don't shy away from it being a very useful tool, but equally we're not silly about when it does work and when it doesn't work."

"To me it's just something that we will continue to work with and do things in, and I want to get over hype that offshoring is someway different to any other strategy we employ to make sure we are competitive and we deliver a return to the business."

At the BOQ, Blacklaw believes offshoring cannot help any local skills shortage. "The hype around outsourcing could be about price, others say it's about skills availability," he said. "We are a relatively small bank and the return for us is negligible for the effort involved. The skills shortage in Australia is not being addressed by offshoring."

Business, Meet IT

On internal relationships, the CIOs have all worked to ensure IT has a thorough understanding of the business requirements as well as promoting the importance of IT to the organization.

CBA's Harte said the IT organization that is savvy and understands business and doesn't just go out and "design its own thing" is going to create more value.

"Competitiveness and IT are inextricably intertwined," he said. "We enable the business to compete, and the ability to get to market faster with a brand new product or service can mean win or lose. Anyone that is going to argue IT doesn't deliver value needs to come up with something more convincing."

NAB's Tredenick believes an issue that can inhibit IT's success in the business is when there is a relationship, a communication or education issue in terms of people understanding IT.

"The role of senior IT executive is very much about a pull strategy about technology," she said, adding the art and skill of the CIO is doing that.

Tredenick sees low self-esteem as the other potential inhibitor to IT. "What can be incredibly inhibiting is a lack of confidence and belief that you not only have a right to be at the table but you are a positive contributor at the table," she said.

When the BOQ went through a transformation some three years ago and replaced most of its applications the board sees it as job done, but IT must communicate that technology developments come in waves.

"I try to convey to the board it's like the ocean: the next wave is coming and there is another wave after that," Blacklaw said. "How do we frame what the next wave of technology investment is? I know the board will find it hard to digest another $40 to $50 million project."