Our third post is common for decentralized IT shops. Decentralizing IT is very common for holding companies with corporate and several business units. While the pendulum is always moving between centralized and decentralized shared services (which IT is part of them), you’ll find your IT group working in decentralized mode from time to time.
Don’t get me wrong, there is nothing wrong about decentralized IT. There are quite a lot of benefits associated with this model, especially the control over and guidance that IT groups have from the business unit that they support. But, you need to be aware of the challenges that are coming with this model.
If you compare IT to a production floor, decentralizing IT is at least duplicating (if not more) part of the production floor. Just from production floor point of view (without the benefits from the overall company perspective) multiplying portions of the production floor causes less efficiency with running the production floor. The process is much more complex and requires more attention to detail with synchronization of flow between multiple sub processes and the main one. Last but not least, it requires more resources to do the same work (when compared to a centralized model).
I’m not trying to argue that decentralized mode is bad or inefficient. You just need to be aware of the challenges associated with this model and to do the best that you can to resolve or mitigate them.