A common, perceived “easy button” solution is to increase capacity by hiring more staff, contracting additional personnel, or outsourcing the entire turnkey project. While these are useful strategies, they are merely tools in the IT department’s toolbox, not comprehensive solutions in themselves. Effective demand management requires a more strategic and nuanced approach.
UNDERSTANDING YOUR IT DEPARTMENT
To grasp the complexity of this issue, let’s examine a typical government agency’s technical environment and IT department operations. A local government organization with 1,000 to 2,500 employees might support several hundred line-of-business applications. Recently, a mid-sized agency inventoried over 700 civic services dependent on IT automation. These include enterprise applications such as ERP, DMS, BPM, BI, GIS and CMS, maintained by internal IT staff. Some agencies continue to rely on in-house-developed applications. Additionally, vendor-provided solutions, whether hosted on-premises or in the cloud, require IT staff to interface, secure, manage and address all the data.
Beyond software, there is a complex network infrastructure and thousands of endpoint devices to secure, maintain, patch and replace regularly. Plus, employees need around-the-clock access to a service desk, with emergency support available 24/7/365.
Given this broad framework, the typical agency’s IT department must dedicate at least 50 percent of its total capacity just to “keep the lights on,” ensuring existing systems and services run smoothly. An additional 10-15 percent of capacity is consumed by reactive tasks, including responding to customer, vendor and infrastructure issues, as well as addressing urgent cybersecurity needs. Like any organization, there is also administrative overhead, including staff training and development, accounting for about 15 percent of capacity. Altogether, this accounts for approximately 80 percent of the IT department’s labor resources, leaving only 20 percent available to address new initiatives. This limited capacity to meet growing demands highlights the disparity between what the business departments want and what IT can realistically deliver.
WHY THE EASY BUTTON OF CONTRACTING HAS CONSTRAINTS
Each agency operates within a unique technological and regulatory environment. These environments are governed by layers of policies and standards that dictate how systems are managed, maintained, regulated and integrated. This structure is designed to align with the agency's needs across technical, financial, regulatory and operational dimensions. As a result, every IT project requires local in-house expertise to ensure that new products or solutions can be integrated effectively and safely.
While contracting can be a strategic and cost-effective approach, it is not a panacea. It remains constrained by the IT department’s limited capacity — only 20 percent of its total resources are typically available for new projects. Simply adding more contractors does not resolve fundamental issues related to demand management.
THE RISKS OF DOING TOO MUCH — OR NOT ENOUGH
An IT department must carefully balance its workload. Overcommitting to projects or initiatives can lead to multiple problems, including project delays, increased costs, and burnout among IT staff. When too many projects are taken on without proper resourcing, quality often suffers, security vulnerabilities may go unaddressed, and critical tasks can be neglected.
Conversely, failing to take on necessary projects can also have serious consequences. Falling behind on technology refreshes, security upgrades, and automation initiatives can lead to increased risk, inefficiencies, and an inability to support new business needs. This creates a scenario where the IT department is constantly firefighting, never able to focus on long-term improvements. Striking the right balance is crucial to ensure stability while still allowing for growth and innovation.
THE IMPACT OF OVERWHELMING DEMAND ON IT STAFF, CULTURE AND ENVIRONMENT
When demand for IT services is not properly managed, it can lead to a work environment where the team is perpetually overwhelmed. Constantly operating at or beyond capacity can diminish morale, increase stress, and result in high turnover rates. An overstretched team is more prone to errors, which can compromise system security and reliability. This “survival mode” culture prevents IT teams from being proactive, focusing instead on addressing only the most urgent issues as they arise.
Furthermore, a strained work environment can stifle creativity and innovation. IT staff members who are overwhelmed are less likely to propose new ideas, and there is little room for professional development. Over time, this can erode the agency’s overall ability to adapt and improve, affecting its long-term success.
HOW ENTERPRISE IT GOVERNANCE CAN HELP MODERATE DEMAND
An enterprise IT governance structure is a formal organizational framework that enables transparent and coordinated vetting of technology projects, investments, and business process changes. Effective IT governance has numerous other benefits as well, and the key is that the business side is in charge of governance, not IT.
Enterprise IT governance plays a vital role in moderating demand and improving agility. By implementing structured frameworks for evaluating, prioritizing and approving projects, agencies can ensure that their IT departments focus on the initiatives that provide the highest value to meet business goals. Governance frameworks, such as COBIT or ITIL, offer guidelines for aligning IT objectives with business goals, ensuring that resources are allocated efficiently.
Agile governance approaches can also allow for quicker decision-making and adaptation to changing needs. By promoting clear communication between IT and business units, these frameworks can help avoid the buildup of technical debt and ensure that IT projects are sustainable and scalable. This reduces the need for reactive measures and creates a more proactive, resilient IT environment — not to mention happier, more engaged, long-term IT employees who want to innovate and drive business solutions to new heights.
This commentary first appeared on LinkedIn.
