With emerging technology now at the heart of many businesses, the organisational design of technology teams has undergone significant transformation.
Data is now viewed as a critical asset, cybersecurity is a top priority for nearly 50% of technology leaders, and technology transformation is considered essential for growth. Technology teams are more complex than ever.
What was once viewed as a cost centre for many businesses is now a rapidly evolving function with increasing influence at the board level. To thrive, businesses must ensure they have structured their tech teams effectively and invested in top-tier talent to lead these teams and deliver strategic objectives.
Technology’s Evolving Presence in the C-Suite
Historically, many businesses appointed Chief Information Officers (CIOs) to lead their technology teams, typically reporting to the Chief Financial Officer (CFO). The CIO’s primary responsibility was to manage technology operations, often viewed as a cost rather than a strategic asset. However, as technology has become a key driver of competitive advantage, tech teams now play a much larger role in shaping business strategy.
In recent years, many CIOs have transitioned to reporting directly to the Chief Executive Officer (CEO), a move that underscores their growing importance in the C-suite. This shift has been a game-changer, enabling CIOs to align technology more closely with overall business objectives. High-calibre CIOs increasingly see organisations that maintain outdated reporting structures as less progressive. Companies looking to attract top-tier CIO talent should prioritise placing these leaders on the executive team to ensure they have a platform to contribute effectively to the broader business strategy
Complexities of a Modern Technology Function
Traditionally, the CIO oversaw all aspects of technology, including data, cybersecurity, and digital transformation. However, as these areas have grown in complexity, many businesses have adopted more specialised roles within their technology teams. This trend is particularly evident in larger FTSE companies, where siloed ownership of critical functions is becoming the norm.
- Rising Importance of the Chief Data Officer (CDO)
Data has emerged as a critical business asset and is increasingly managed as its own function. Many organisations now employ a Chief Data Officer (CDO) who reports directly to the CEO. Data’s importance extends across digital transformation, business growth, and customer satisfaction, making the CDO role indispensable.
Effective data management is essential. For example, McKinsey reported that data-driven companies are 23 times more likely to acquire customers, six times as likely to retain customers, and 19 times more likely to be profitable. CDOs play a vital role in ensuring that teams across the business understand and adhere to robust data governance practices, including compliance with GDPR and other regulations. Additionally, implementing organisation-wide data literacy training can significantly enhance how data is leveraged for strategic decision-making.
- Cybersecurity as a Key Business Imperative in 2025
Cybersecurity remains a top concern for UK businesses. Global conflict and the increasing sophistication of AI have heightened vulnerabilities to cyber threats. Chief Information Security Officers (CISOs) are more in demand than ever.
According to a recent report by IBM, the average cost of a data breach in 2023 was $4.45 million, a 15% increase over three years. For businesses holding large volumes of sensitive personal data, the potential financial and reputational damage of a breach is immense. CISOs are therefore critical for safeguarding both company assets and consumer trust. Organisations with robust cybersecurity measures are also better positioned to adopt innovative technologies without exposing themselves to undue risk, a vital factor in maintaining a competitive edge.
- Combating Technology Skills Gaps with Interim Talent
Technology functions continue to grapple with a persistent skills gap. According to a survey by Gartner, 64% of IT executives cited talent shortages as the most significant barrier to adopting new technologies in 2023. This shortage gives skilled candidates substantial bargaining power.
Hiring interim experts in transformation, cybersecurity, and data can be a cost-effective way to bridge skills gaps. Interim talent provides businesses with immediate access to expertise, enabling them to execute complex projects and upskill internal teams simultaneously. Interim professionals are especially valuable in large-scale transformations, where their experience can prevent costly errors and delays. For instance, a 2022 study by Deloitte found that businesses utilising interim experts saw a 30% reduction in project delays compared to those relying solely on internal resources.
Empowering Technology Leadership for Business Growth
Technology functions are no longer just operational enablers; they are strategic drivers of growth. As organisations navigate the complexities of data, cybersecurity, and digital transformation, investing in top-tier talent and ensuring technology leaders have a voice in the C-suite is essential.
Businesses that prioritise their technology teams will be best positioned to stay competitive in a rapidly evolving landscape. Whether through permanent appointments or leveraging interim expertise, organisations must embrace the strategic importance of technology to drive innovation and growth.
For more information download our 2025 Technology Leadership report.
