Rimini Street announced findings from a survey conducted by Censuswide, exploring the evolving dynamics among CFOs and CIOs in the EMEA region.
A key takeaway from the survey is that over 86% of CFOs and CIOs in EMEA report that their working relationship has strengthened, with 43% of CFOs attributing improved business outcomes to this enhanced collaboration. As more CFOs take an active role in technology decision-making, there is an increased focus on tackling rising IT costs alongside addressing inefficient tech investments.
The survey highlights room for improvement in communication between the finance and IT departments. Specifically, 85% of CFOs desired their CIO counterparts to become more business savvy, while 87% of CIOs indicated that they would like their financial colleagues to enhance their understanding of technology.
Rimini Street's EMEA GM & GVP, Martyn Hoogakker, said, "Everyone says they know the value of good relationships and collaboration, but people rarely link it to business impact. Being able to discuss ideas, get feedback and understand how all aspects of the organisation align greatly increases the chances of success. Central to that is good communication."
"It's clear from the results that a greater understanding of areas outside our own business functions can facilitate a greater sharing of knowledge, get key stakeholders onside and secure the IT investment EMEA businesses need. Do that, and businesses can benefit from improved business outcomes such as greater profitability and growing revenues."
The survey also reveals that 42% of CIOs are focusing their investments on emerging technologies like SaaS and cloud services as solutions to manage rising IT expenses. The necessity of maintaining clean, accurate data is underlined by the fact that 93% of CIOs assert that their current data requires substantial or moderate cleanup to leverage AI effectively, pointing out the significant role of historical data in maximising AI project outcomes.
Another area indicated in the survey results is IT service outsourcing, which has reportedly assisted in resolving issues such as the loss of IT talent and predictability of costs. CIOs have noted benefits such as improved support for application customisations and better service quality.
Not all tech initiatives are perceived as valuable, with 23% highlighting ERP upgrades or migrations as delivering the least value. Only 19% of CFOs declared satisfaction with the returns on their tech investments, with many facing unexpected costs and limitations impacting system flexibility.
This dissatisfaction is a driving force behind more CFOs becoming involved in setting technology budgets. As part of their strategic priorities, CFOs recognised security, compliance, and customer-facing SaaS technologies as their top tech investments, delivering the highest business value.
Rimini Street's EVP and Chief Financial Officer, Michael Perica, said, "In this highly competitive business landscape combined with continued cost pressures, CFOs and CIOs must be ruthless about the ROI of every investment, driving growth and profitability with each decision made. A strong CFO/CIO collaboration focuses on both short and long-term success for the business, confidently leading the team through economic challenges, market fluctuations and uncertainties."
