CIOs must adopt startup agility to compete with tech firms and accelerate product launches: Abhrajit Ray, Deloitte India

In a recent interaction with Express Computer, Abhrajit Ray, Partner & CIO Program Leader, Deloitte India, sheds light on the evolution of Deloitte’s tech leadership initiatives and their focus on empowering CIOs. Abhrajit outlines the details of Deloitte’s CIO Program, which aims to help CIOs strengthen their personal brand, enhance peer networking, and gain insights into emerging technologies. He highlights how Deloitte’s transformation from an accounting-focused firm to a tech-driven consultancy is shaping the future of leadership, emphasising the growing role of CIOs in driving innovation and aligning technology with broader business goals.

Tell us briefly about Deloitte’s CIO Program?

We started a CXO program, and initially, Deloitte had a strong CFO program due to our background in accounting and tax. However, last year, we formally introduced a CIO program. My colleague, Deepa Seshadri, led this effort. We also have programs like the CHRO program, and we will soon launch a CEO’s program. Now, Deloitte’s business is evolving from accounting to management consulting, and today, almost everything is tech-enabled. About 60-70% of our work is tech-driven, and we anticipate that number will reach 95% soon. This shift is why we now call it the CIO and Tech Leaders program, which is central to how we assist our customers.

The program has three main goals: First, to help CIOs build their brand both within and outside their organisations, recognising the growing influence of technology and the CIO’s role. Second, to enable peer networking across industries, such as pharma and financial services, where similar challenges exist. Finally, we provide valuable insights, not just on technical matters but also on practical issues, like AI, security, and regulatory requirements such as the right to forget.

Last year, we focused on raising awareness about the program, which has been established globally for over 10 years but was new to India. This year, we’re emphasising more personalised, one-on-one interactions through smaller events, like exec labs and design-thinking labs. Our goal is to foster deeper connections and support CIOs in building their personal brands.

What was the rationale behind launching this program, considering similar platforms already exist, and how does it work from Deloitte’s perspective? Do CIOs need to enrol, and how is the approach formulated and executed?

The rationale is straightforward, we aim to strengthen relationships with key clients, focusing on long-term engagement rather than just commercial transactions. For top clients, we want to maintain relationships with CIOs even if they move between organisations, tracking their career growth over time. This is a long-term investment for us.

We launched the CIO Vantage Program to prepare future CIOs—those just below the current level. It’s a six-month program focused on building strategic, lasting relationships, not just transactional ones. We’re also engaging with former CIOs through an advisory board to evolve the program with input from both current and ex-CIOs.

Our approach is unique because we integrate expertise from different domains, like tax, accounting, internal audit, and IT, making us a go-to resource for key leaders. We provide holistic advice that covers not only technology but also regulatory compliance, working closely with bodies like the RBI and the Finance Ministry.

The program is informal, evolving yearly with input from CIOs themselves. There’s no formal registration; it’s a co-creation process, as their input is essential to our business.

Are these approaches made on an individual basis, or are they considered from an organisational perspective, especially if some organisations may not be open to the idea?

At Deloitte, we approach this from an organisational perspective. For instance, we have a long-standing business relationship with a bank. In that context, we engage with the CFO as part of our CFO program. The reason I mention the individual is that if the CFO moves to a different organisation, we continue to follow them. We track their career trajectory, providing guidance and support. Often, we offer a transition lab, which helps new CIOs or CFOs be effective within their first 90 days. While we focus on the organisation’s new leader, we also ensure a smooth transition for the individual, whether they come from or move to another client.

How have conversations with tech leaders evolved recently, especially with the shift from digitization efforts to AI and GenAI? What expectations do they have from Deloitte in these discussions?

CIOs face entirely different challenges today compared to 3-4 years ago, as technology’s relevance has grown beyond just IT departments to include CEOs. Leaders now see themselves as tech companies, regardless of their industry. For instance, bank CEOs recognise their competition isn’t limited to other banks but includes tech giants like Apple and Google, especially in the payments space. 

During COVID, I led a digital transformation for a PSU in the gas sector, where startups were delivering diesel via apps—something previously unimaginable in such a regulated industry. This highlights the shift: every company is now a software company.

CIOs must now operate with the agility of CTOs or CPOs of startups, focusing on rapid product launches and competing with tech firms. Deloitte’s role is to help enterprises remain nimble enough to match the pace of these startups. With companies like Google and Amazon releasing thousands of updates daily, the key is to increase velocity from ideation to production while maintaining system reliability. In today’s tech-driven world, speed and uptime are critical.

How do you assist CIOs and tech leaders, who may not be as hands-on with emerging technologies, in navigating challenges and ensuring they leverage these technologies to meet their organisation’s larger business goals?

We assist CIOs and tech leaders by focusing on three main areas: building their brand, optimising costs, and developing leadership and talent. 

CIOs often struggle with soft skills, despite knowing what needs to be done. We engage with CEOs and CFOs to foster alignment among the leadership team, as strong support from them is crucial. CIOs also need help gaining buy-in from other CXOs, particularly when it comes to automation initiatives. 

Our approach emphasises unlocking bandwidth within IT departments. If 90% of their resources are spent on running the business, there’s little time for innovation. We help them automate routine tasks, which allows their best people to focus on transformative efforts. 

Empathy is essential in understanding the barriers to change, such as operational challenges. We encourage practices like Site Reliability Engineering (SRE) to streamline operations and improve service reliability. Drawing from my experience in big tech, I demonstrate the value of these approaches to help CIOs effectively leverage technology for their organisations’ goals.

How can CIOs drive innovation and maintain cost efficiency while justifying tech investments in their journey to become digital-first organisations, especially as many banks and other industries pursue this transformation?

CIOs play a crucial role in driving innovation and maintaining cost efficiency while justifying tech investments, especially as organisations become digital-first. A key challenge is controlling cloud costs, which often escalate as IT spending moves outside central control. To counter this, CIOs should streamline access to central services, reduce redundant purchases, and negotiate larger contracts for better discounts. They must also recognise that cloud services are not always cheaper; cost-efficiency depends on application types and usage. Simply moving applications to the cloud without optimisation can lead to higher costs, so a selective scaling approach is necessary.

Emerging technologies, like GenAI, can further drive up costs due to high token usage. To manage this, CIOs should involve other C-level executives, such as the CFO, to closely monitor cloud expenses, as optimising usage can save up to 30%.

Retaining top tech talent is another priority. CIOs are increasingly forming Centres of Excellence (COEs) to engage skilled employees in meaningful projects. Innovation should not be siloed but integrated across the organisation. A culture that encourages experimentation and accepts failure as part of learning is vital. CIOs must work with other leaders to create cross-functional teams, enabling broader collaboration and fostering innovation from within.

Based on your interactions with CIOs, have you observed any trends of repatriation from cloud back to on-prem solutions due to cost and security concerns? Do you think this trend will continue or become the norm in the future?

Based on my interactions with CIOs, there’s been a strong realisation as we enter the second phase of cloud contracting, with the first phase of five-year contracts coming to an end. Leaders are now pushing the big three cloud providers, often employing experts to assess real costs and negotiate better terms. 

One IT leader posed an interesting question: How do you build a cloud? They were considering factors like data centre space, government power rates, air conditioning, server procurement costs, software, and talent. When all these elements are added up for a reasonably sized organisation, it’s hard to justify the costs associated with hyperscalers. The perception that cloud solutions would solve all problems has shifted; people now see it as simply a data centre operating on IR, not a magic solution. 

As we approach the GenAI phase, organisations are evaluating which workloads are suitable for cloud deployment without extensive provisioning. Most systems are stable and manageable, while about 20% are unpredictable. In regions with high labour costs, like the US, UK, and Western Europe, going fully cloud makes sense. However, in areas where technical talent is accessible and hardware costs are lower, the business case for cloud is weakening. CEOs and CFOs are realising that cloud spending often exceeds initial promises.

In RFPs, there’s a growing demand for cloud-native architecture, but companies are also considering on-premises solutions for agility. Some organisations want cloud-native setups that start on hyperscalers but plan to transition on-premise over time to control costs. 

People now understand the benefits of cloud architecture and automation but question the value of expensive services. Governments are also directing organisations to build scalable architectures that may initially utilise hyperscalers but should eventually plan for on-premise solutions and cross-cloud compliance. 

While not everyone is moving back to on-premises, a hybrid approach is emerging, driven by strategic decisions rather than compulsion.

Do you think the excitement and experimentation around GenAI and related technologies justify the concerns about their costs?

We’re moving up the hype cycle with GenAI, and this is a generational change, much like the introduction of computing. People feared computers would replace jobs in banks and railways, but while some jobs were impacted, the technology became foundational. Similarly, GenAI will eventually affect many jobs, but it’s not a solution for everything and comes with significant costs. These costs are much higher than with traditional computing because GenAI involves complex algorithms and massive learning needs.

Right now, the value gained from productivity doesn’t match the high costs, making many businesses hesitant to fully invest. Some organisations are experimenting with on-premise solutions, seeking more control over costs. Cloud computing, like GenAI, started as expensive, and companies are learning from that experience.

Despite the current excitement, businesses need to solve foundational issues like data quality before AI and GenAI can truly thrive. For example, enterprises often have data represented in different ways, which makes it difficult for AI to provide accurate insights. Solving this data problem is 70-80% of the challenge. Once the data is consistent and reliable, GenAI can deliver more accurate predictions.

The key opportunity lies in preparing the foundational systems: improving data quality, managing infrastructure costs, and building modular architectures. While the hype around GenAI will fade, its potential to create intuitive, conversational interfaces could revolutionise how we interact with technology. However, it’s important to remain grounded, focusing on practical use cases rather than chasing the latest trend.

What best practices should organisations follow to make their businesses more resilient to modern cyber security threats, based on interactions with CIOs, CISOs, and other tech leaders?

As organisations move to the cloud and build new applications, the attack surface has expanded significantly. Previously, protecting the perimeter was enough, but now, with headless apps and open environments, vulnerabilities have multiplied. Security practices haven’t evolved as quickly as the threats.

A common issue is the tendency to focus on security at the end of development, with minimal time for vulnerability assessments (VAPT). This last-minute approach is insufficient. Instead, organisations should integrate security testing throughout the software development lifecycle, known as shifting left. By adopting a DevSecOps approach, security is built into the process from the start, enabling continuous monitoring of vulnerabilities through CI/CD pipelines.

Additionally, dependencies in software can introduce risks, as seen in a recent Azure outage caused by external software. Regular security checks are essential, even after the software is shipped, to ensure that new vulnerabilities are detected and fixed swiftly through automated procedures.

Another overlooked risk lies in the development phase. Developers often use open-source databases with default passwords, leaving systems vulnerable. Hackers can target these development environments to gain insights before an app even reaches production. Therefore, it’s critical to train developers, not just security teams, to avoid these mistakes and ensure security throughout the process.

Do you think the CIO role will eventually phase out, with multiple specialised CXO roles like Chief AI Officer, Chief Data Protection Officer, and Cloud Evangelist emerging within IT departments in the coming years? How do you see this trend evolving?

It’s an interesting question because a few years ago, the hottest role in IT was the Chief Digital Officer or CDO. The CIO was responsible for both running and changing the business. However, now we’re seeing a shift. People don’t focus as much on the CIO title. If you’re a CIO, you’re responsible for both operations and transformation. 

In terms of the future, we’ll see changes happen in phases. We’ve already seen the rise of the Chief Digital Officer (CDO), and now, in some cases, CDOs and CIOs are merging roles, while in others they remain separate. For example, I recently spoke with a global organisation where the top role was Chief Technology and Data Officer, with no CIO at all.

The designations may change, but the responsibilities—running and changing the business—remain. Some organisations may have the CIO focus on operations while someone else leads transformation. New roles will continue to emerge, like cloud cost management and sustainability, as IT increasingly plays a key role in these areas. 

Ultimately, all CXOs will need to be tech-savvy. It’s not just about the CIO anymore—CEOs, CFOs, and the entire leadership team need to understand technology deeply. The CIO will still play a key role, but their main responsibility will be getting other CXOs excited about technology, as it impacts everyone, not just the IT department.