Enter the IT CFO

Computerworld - Floating around the corporate IT community now is the notion that in certain instances, the IT budgeting process could use a dedicated expert — an IT chief financial officer.

“Along with being a financial/business adviser, this position would include all the budgeting and actual reporting and oversight of project and service portfolios — along with costing figures — to ensure that the information being used was of sufficient quality,” says Sean Worthington, CIO in residence at PlanView. “This person would also help keep the IT leadership team honest when it comes to the financial impact of our decisions.”

Worthington says he sees some IT shops gravitating toward an IT CFO model. “I see this as an emerging trend, because of the interest I have seen from my peers and the increasing pressure toward greater financial transparency in IT spending from executive levels,” he says.

Practically speaking, hiring an individual dedicated expressly to these functions doesn’t yet make sense. “I’m not sure that a company of our size could justify an IT CFO,” says Robert Golden, director of strategic business services at Insurance House. “However, we do employ many functions of that role to keep a tighter handle on spending, payment processes, payment methods, etc.”

Other IT shops are not ready to make that bold leap. “IT CFOs scare the pants off me,” says David Oles, IT director of research and development at Rent-A-Center. But, he adds, “I realize the importance of managing to a budget — not that CIOs aren’t budget-conscious, because they are. However, a CFO responsible for the organization’s IT accounting and financial structure may be even more mindful of the dollars spent.”

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