New Survey Finds CFOs Taking the Lead in IT: Strengthening Partnerships for Strategic Growth

As inflation and operational expenses continue to rise, CFOs are increasingly stepping into the tech decision-making arena to ensure better business outcomes. Traditionally, finance and IT departments operated independently, but new research highlights a growing collaboration between CFOs and CIOs. Despite occasional friction, both roles agree that their partnership is becoming stronger, leading to improved organizational performance. This alignment is vital as businesses across EMEA strive to combat rising costs and maximize returns on their tech investments.

Rimini Street, a global leader in enterprise software support and services, has shared key findings from its latest Censuswide survey, “EMEA C-suite Imperatives: Evolving IT and Enterprise Investments.” The study, which polled over 1,500 CFOs and CIOs from the EMEA region, provides insights into how top executives are navigating the complexities of technology investment and strategy.

Key Survey Findings

Strengthened CFO/CIO Relationships

Over 86% of surveyed CFOs and CIOs in EMEA reported an improvement in their relationship. Among those, 40% attributed this strengthening to a shared focus on security, compliance, and risk. The collaboration was most notable in the Middle East, with 96% reporting improvement, compared to 76% in France. However, only 13% described their relationship as slightly or significantly worse.

This improved collaboration has delivered tangible results:

• 43% of CFOs credited their partnership with CIOs for driving better business outcomes.
• 36% viewed CIOs as innovative leaders who play a key role in shaping business strategy.

Communication Gaps Persist

Despite these advancements, communication remains an area for improvement:

• 85% of CFOs expressed a need for their CIO counterparts to become more business-savvy, a sentiment echoed by 79% in the UK.
• Similarly, 87% of CIOs believed their finance colleagues should improve their understanding of technology, with this figure rising to 94% in the Middle East.

Rimini Street’s EMEA GM & GVP, Martyn Hoogakker, emphasized the importance of cross-functional understanding, noting that fostering dialogue across departments increases organizational success. Hoogakker stated that aligning all aspects of the business ensures the support of key stakeholders and secures necessary IT investments, ultimately driving profitability and revenue growth.

EMEA Tech Investments: Trends and Challenges

CIOs in the EMEA region are prioritizing emerging technologies (42%) and expanding investments in SaaS and cloud services (42%) to manage escalating IT costs. However, they recognize that clean, accurate data is critical for maximizing the potential of advanced technologies like AI.

• Nearly 88% of CIOs acknowledged that historical data is essential for leveraging AI in ERP systems, but 93% admitted that their data required significant or moderate cleanup for AI projects to succeed.
• Saudi Arabia’s CIOs were the most optimistic, with 15% reporting their data was already in good condition for AI initiatives.

CIOs are also turning to IT outsourcing to mitigate talent shortages and manage costs more effectively. Benefits cited include:

• Enhanced application customization support (36%)
• Broader service and support solutions (32%)
• Improved quality of service (33%)
• Faster issue resolutions (29%)

Despite these gains, ERP upgrades or migrations and mobility technologies were deemed the least valuable, with only 23% of CFOs reporting satisfaction in these areas.

CFOs’ Growing Role in Tech Decisions

The survey revealed widespread dissatisfaction among CFOs regarding the returns on IT investments. Only 19% expressed satisfaction with their tech investments, with many citing issues like increased costs, reduced system flexibility, and organizational disruptions. In the Middle East, satisfaction was slightly higher, with 24% of CFOs reporting positive returns.

This dissatisfaction has prompted 73% of CFOs to take a more active role in determining technology budgets. The survey identified the top three areas delivering the highest value:

• Security (27%)
• Compliance and risk management applications (26%)
• Customer-facing SaaS technologies (26%)

Conversely, ERP upgrades and mobility technologies were the least likely to deliver value, at 23% each.

Michael Perica, Rimini Street’s EVP and CFO, highlighted the importance of ROI in tech investments. He stressed that strong CFO/CIO collaboration is essential for navigating economic challenges, ensuring both short-term efficiency and long-term growth.

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