{"id":64661,"date":"2026-04-09T13:39:07","date_gmt":"2026-04-09T13:39:07","guid":{"rendered":"https:\/\/www.elixirr.com\/en-gb\/?p=64661"},"modified":"2026-04-09T13:58:00","modified_gmt":"2026-04-09T13:58:00","slug":"why-hybrid-it-operating-models-fall-short","status":"publish","type":"post","link":"https:\/\/www.elixirr.com\/en-gb\/why-hybrid-it-operating-models-fall-short\/","title":{"rendered":"Why \u2018hybrid\u2019 IT operating models fall short"},"content":{"rendered":"\n
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Today\u2019s technology leaders face a defining organisational challenge: how to structure IT to defend against escalating cyber risk,\u00a0operate\u00a0under sustained cost pressure and still enable rapid innovation.<\/span>\u00a0<\/span><\/p>\n

For organisations\u00a0operating\u00a0across regions, product lines, or brands, the challenge is particularly acute.\u00a0These federated\u00a0organisations must balance enterprise-wide efficiency, security and control with the autonomy\u00a0required\u00a0for local responsiveness and differentiation. As a result, many now view\u00a0a\u00a0\u2018hybrid\u2019\u00a0IT operating model as the\u00a0default\u00a0viable\u00a0solution.<\/span>\u00a0<\/span><\/p>\n

Yet despite this consensus, many organisations struggle to realise the benefits hybrid models promise.\u00a0Various\u00a0market reports\u00a0estimate that\u00a0less than\u00a050%\u00a0of digital transformations meet their target outcomes, contributing to an estimated\u00a0\u00a0<\/span>$2.3 trillion<\/span><\/a>\u00a0in wasted investment globally each year.\u00a0<\/span>\u00a0<\/span><\/p>\n

IT operating models<\/h2>\n

Historically, federated organisations have oscillated between centralised and decentralised IT operating models as strategic priorities shift.<\/span>\u00a0<\/span><\/p>\n

Centralised models\u00a0\u2013\u00a0where IT for the whole organisation is\u00a0primarily\u00a0run by a single team\u00a0\u2013\u00a0optimise for security, efficiency and consistency through shared platforms, common\u00a0standards\u00a0and central governance. They enable economies of scale, stronger enterprise-wide security controls and improved visibility of cost and risk. However, centralisation often struggles to accommodate diverse local requirements, resulting in slower decision-making, reduced responsiveness and solutions that may not fully align with individual business divisions\u2019 needs.<\/span>\u00a0<\/span><\/p>\n

Decentralised models\u00a0\u2013\u00a0where individual business divisions run their own IT\u00a0\u2013\u00a0prioritise business alignment,\u00a0speed\u00a0and flexibility by embedding IT capabilities close to local markets and customers. This enables rapid decision-making and tailored solutions. However, decentralisation typically drives duplicated platforms, higher aggregate IT costs, inconsistent security\u00a0controls\u00a0and limited enterprise-wide visibility of spend and risk.<\/span>\u00a0<\/span><\/p>\n

Why hybrid IT operating models have become essential<\/span><\/span><\/h2>\n

Neither fully centralised nor fully decentralised models can adequately address the converging pressures organisations face today.<\/span>\u00a0<\/span><\/p>\n

First, cyber threats are increasing in scale and sophistication. Without centrally governed security controls and coordinated incident response, federated organisations are left with fragmented defences, slower\u00a0incident\u00a0response and\u00a0containment, and heightened regulatory and reputational exposure.<\/span>\u00a0<\/span><\/p>\n

Second, economic uncertainty has intensified scrutiny of technology spend. Without centralising foundational IT services, organisations bleed cost through duplicated platforms, overlapping vendors and\u00a0technology\u00a0investments that, while they may be locally optimised,\u00a0undermine enterprise-wide efficiency.<\/span>\u00a0<\/span><\/p>\n

Third, advances in AI, automation and data platforms are creating significant opportunities for growth and differentiation. Without operating models that enable local\u00a0adaptability\u00a0and rapid scaling, organisations\u00a0may\u00a0miss\u00a0narrow\u00a0windows\u00a0of opportunity\u00a0and fall behind more agile competitors.<\/span>\u00a0<\/span><\/p>\n

In response, the hybrid IT operating model\u00a0\u2013\u00a0where foundational IT services are centrally run while business-specific\u00a0or differentiating\u00a0capabilities\u00a0remain\u00a0decentralised\u00a0\u2013\u00a0has\u00a0emerged\u00a0as the deliberate design choice.<\/span>\u00a0<\/span><\/p>\n

Why hybrid operating models often fall short<\/h2>\n

While hybrid IT operating models are widely adopted, many organisations fail to realise their full potential. In our experience, failure is driven by a set of challenges that surface before implementation begins.<\/p>\n

First, organisations often lack a clear and shared \u2018why.\u2019 Given the complexity of implementing a hybrid model across multiple divisions, a compelling rationale is essential to secure sustained buy-in. Too often, benefits are articulated only at an enterprise level and not translated into clear value for individual business divisions. When divisions perceive a loss of control without corresponding benefit, resistance emerges and mobilisation slows.<\/p>\n

Second, organisations frequently fail to agree on what constitutes a truly \u2018foundational\u2019 capability versus one that should remain business specific. These debates are often influenced by a desire to retain high-performing teams or avoid workforce impacts. When difficult decisions are deferred, ambiguity persists and the model stalls before meaningful progress can be made.<\/p>\n

Third, funding the initial design and build phase is a recurring barrier. Business divisions are typically willing to pay for shared services once operational but are reluctant to fund upfront investment until value is proven. This creates a funding gap at the point where investment is most critical, particularly for benefits such as improved security, which represent an opportunity cost realised only through the absence of incidents.<\/p>\n

Implementation is further constrained by access to scarce skills. The individuals required to design and operationalise shared services are often domain experts with critical responsibilities within their home divisions. Mobilising these individuals across organisational boundaries introduces HR complexity and requires strong, sustained senior sponsorship.<\/p>\n

Finally, governance is frequently established too late. Without clear decision rights, funding mechanisms, and escalation paths from the outset, organisations default to familiar behaviours, undermining the hybrid model before it has a chance to take hold.<\/p>\n

Conclusion<\/span><\/span>\u00a0<\/span><\/h2>\n

For large, federated organisations, hybrid IT operating models offer a compelling promise: improved security and cost efficiency without sacrificing local differentiation. Yet choosing the model is only the starting point. Too often, hybrid models fail not because the design is flawed, but because the conditions for success are never\u00a0established.<\/span>\u00a0<\/span><\/p>\n

Ambiguous rationale, unresolved capability boundaries, early funding gaps, constrained access to talent, and delayed governance\u00a0can\u00a0undermine delivery before value can be realised.\u00a0Similarly,\u00a0the\u00a0sustained\u00a0enrolment\u00a0of\u00a0leadership\u00a0teams, within IT\u00a0but critically beyond such as\u00a0the\u00a0business\/divisional\u00a0leadership, is of\u00a0great importance.<\/span>\u00a0<\/span><\/p>\n

We help organisations address these challenges early, clarifying the\u00a0\u2018why,\u2019\u00a0defining what is truly foundational, and shaping a cohesive strategy that is aligned to wider Group priorities. We support the design of pragmatic funding mechanisms and governance that enable mobilisation. By focusing on implementation discipline as much as operating model design, we help clients ensure their hybrid IT models deliver tangible and lasting business value.<\/span>\u00a0<\/span><\/p>\n <\/div>\n <\/div>\n<\/section>\n\n\n\n

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