“Disruption is redefining tech leadership, with regulation emerging as a critical new force,” according to Logicalis CEO Robert Bailkoski.
Bailkoski highlights three standout themes from Logicalis Group’s latest CIO Report—all anchored in disruption. “We’re seeing disruption fuelled by emerging technology, reshaped by cybersecurity threats, and heightened by growing regulatory pressures.”
As CIOs and tech leaders navigate these rapid shifts, the annual CIO Report sheds light on the evolving priorities and challenges facing IT leadership today.
Addressing a room of industry experts, Bailkoski reflected on how the role of IT leadership has transformed over the past decade.
A Decade of Evolution: From ‘Shadow IT’ to Digital Transformation
Bailkoski recalled 2014’s key theme: ‘shadow IT.’
“Back then, departments were making independent IT decisions without consulting IT leaders. CFOs would choose ERP systems, and CMOs would adopt CRM tools—often with budget reallocations,” he said.
“Many of you expressed frustration, feeling like you’d lost your strategic voice, pushed into a ‘basement’ role while others made big decisions. But this frustration marked the beginning of IT’s rise as a strategic leader.”
By 2018, CIOs had a clear priority—digital transformation. “This shift was about evolving the organisation to engage customers, streamline operations, and boost productivity. It aligned directly with CEOs’ ambitions to make organisations more agile and customer-centric.”
Then, COVID-19 marked a critical moment when IT leaders became indispensable. “You rose to the challenge, ensuring remote work and continuity of service. Without your efforts, many organisations would have struggled to survive. It was a powerful reminder of IT’s strategic role, solidifying your position as a key partner in organisational resilience and innovation.”
‘Unprecedented convergence’
Bailkoski said IT leaders are now navigating an unprecedented convergence of technological advancement, cybersecurity, and regulatory demands—a “trifecta of disruption” reshaping today’s business landscape.
The 2024 Report findings reveal how IT leadership is not just surviving, but proving resilient in the face of these seismic shifts. Bailkoski highlights:
- Disruptive Power of AI and IoT
AI has taken centre stage, transitioning from a novelty to a critical engine for innovation and operational excellence.
While digital transformation previously dominated tech priorities, AI is now seen as the linchpin for innovation and operational efficiency. “Your CEOs are saying, ‘Help us harness AI to engage our customers better and drive productivity,’” he said, underscoring the high expectations placed on tech leaders.
However, with AI’s rapid adoption comes a unique set of challenges. Nearly 70% of CIOs expressed concerns about the risks tied to AI deployment, from data privacy and ethical implications to the real threat of inadequate implementation.
“It’s incumbent on CIOs not only to champion AI initiatives, but to educate their organisations on its associated challenges,” Bailkoski advised. The survey highlights that while 87% of global respondents are engaged in AI-focused workstreams, this number is even higher in Australia at 94%. He attributes this enthusiasm to Australia’s reputation as a testing ground for new technologies, where innovation is prioritised.
Another notable re-emerging technology is the Internet of Things (IoT), which Bailkoski described as making a “comeback.” While IoT generated significant hype a decade ago, it faced challenges in delivering on its promises.
“IoT’s resurgence speaks to its potential to bridge IT and operational technology.” He added that connectivity challenges remain a significant hurdle, with over 75% of respondents citing networking limitations as a barrier to IoT’s success. Almost all surveyed CIOs are actively investigating solutions like 5G and Wi-Fi 7 to overcome these obstacles.
- Cybersecurity: The Persistent Threat
As technology advances, so do cyber threats. Bailkoski highlighted that cybersecurity continues to top the agenda for IT leaders, describing it as a space where CIOs fluctuate between “hyper-vigilance and genuine paranoia.”
The CIO Report data reveals a stark reality: 83% of global respondents reported experiencing a cyberattack within the past 12 months, with this figure jumping to 91% in Australia. “Perhaps Australians are just more honest,” Bailkoski quipped, acknowledging the openness with which local leaders report incidents.
Despite these alarming statistics, only 43% of IT leaders feel prepared to manage the fallout of a cyberattack. He urged CIOs to rethink traditional approaches to cybersecurity, especially given the skills shortage in this field.
“With AI, IoT, and cybersecurity evolving rapidly, it’s time to get smarter about tackling increasingly sophisticated threats.” For many organisations, Bailkoski said the road ahead involves adopting more agile and integrated security strategies, alongside fostering in-house talent development.
- Rise of Regulatory Disruption and Sustainability
Bailkoski highlighted the increasing weight of regulatory disruption, which includes sustainability mandates that are reshaping tech priorities.
The report indicates a rising trend: CIOs are now frequently tasked with implementing sustainability initiatives, often under pressure from both regulators and CEOs.
“Sustainability isn’t just about compliance; it’s increasingly seen as a business imperative. For CIOs, this means balancing operational efficiency with sustainable practices—a complex but necessary evolution.” Many respondents reported prioritising green technologies and data-efficient solutions as part of their strategic roadmap, further demonstrating that sustainability is a long-term commitment.
“Your CEO might be putting pressure on you to address this area. Why might your CEO be doing that? It’s because they think it’s good for business. There’s no shame admitting that being greener, genuinely greener, might actually drive a better bottom line.”
Notably, 93% of respondents—consistent with results in Australia—agreed that IT will be central to achieving their organisation’s sustainability goals.
“Currently, IT contributes about 4% to global emissions, which may not sound substantial. However, its impact is expected to grow rapidly, reaching 14 to 20% of total emissions within a few years, partly due to the rise of AI. This makes it critical for us to act now to mitigate IT’s environmental footprint.”
‘Boardroom Strategists’
The Logicalis CIO Report reveals the evolution of the CIO from IT overseer to strategic boardroom player. Today’s CIOs face a complex landscape where AI and IoT bring both opportunities and risks, cybersecurity demands constant vigilance, and regulatory pressures push for sustainable practices.
“These stats highlight one thing: CIOs have an ever-growing to-do list,” says Bailkoski. “The key is prioritisation—focusing on what drives value and supports the CEO’s and board’s objectives.”
With a balance of innovation, resilience, and agility, CIOs are securing their place at the table as essential boardroom strategists, a role Logicalis data shows has emerged from years of IT transformation.