In October, OrangeHRM invites you to OHRMCon in New York City. a conference designed to elevate your perspective on the evolving dynamics of HR and technology. The event features an impressive lineup of global voices, including Lee Congdon, former Chief Information Officer at Red Hat, who recently shared his insights on a topic reshaping the enterprise landscape: the changing role of IT organizations.
Mr. Congdon’s experience spans decades of business transformation, where IT was once seen as a support unit but is now central to innovation and growth. As the digital revolution continues, his perspective underscores a critical inflection point for how organizations operate, collaborate, and lead. From legacy systems to agile strategies, his talk highlights not just how IT adapts, but how it now sets the pace for competitive advantage.
Building Value Beyond Legacy: What IT Organizations Must Rethink
Redefining the Relationship Between IT and Business
The old model of segregated roles between technical and business units has worn thin. In an age where agility determines viability, IT can no longer be relegated to support status while business units call the shots. Lee Congdon points out that the legacy framework, where departments operated in isolation, competing on cost or efficiency no longer meets the demands of a hyper-connected, knowledge-driven economy.
Integrated partnerships now replace functional silos. IT teams must not only understand but speak the language of business outcomes. When developers, data architects, and infrastructure managers collaborate directly with sales, marketing, and operations, they create aligned strategies that scale faster and produce measurable impact.
This shift also has direct implications for employee engagement. When IT teams are empowered to co-create solutions with business counterparts, their work becomes more meaningful. Instead of reacting to requests, they become strategic contributors to innovation and growth. That kind of integration increases motivation, encourages cross-functional learning, and drives a sense of ownership throughout the workforce.
This might look like a product team co-developing a client portal with IT, rather than simply handing off specifications. It may involve IT identifying pain points in workflow and bringing those insights to operations before issues arise. It is this kind of proactive, integrated thinking that keeps organizations nimble and employees invested.
IT as a Revenue Driver in the Era of Digital Transformation
The pace of digital transformation demands more than back-end support; it requires IT to lead from the front. Congdon illustrates this shift clearly when he says, “instead of just working with their business partner to select an Agile Portfolio, implement it over time, assist in the change management and so on, IT organizations now must bring offers to the table to either reduce costs, or more importantly, to increase revenue.”
That statement marks a powerful departure from the traditional IT role. IT is no longer just responsible for execution, it’s now responsible for contribution. In fact, some of the most impactful product innovations today are tech-driven: mobile-first platforms, AI-powered recommendation engines, or even predictive analytics tools designed to optimize logistics. These are not projects that originate in a vacuum; they’re developed with a revenue mandate.
For organizations already undergoing digital transformation, this means the IT unit cannot afford to be reactive. It must function as a proactive, co-leading force capable of identifying market opportunities, designing technological responses, and deploying solutions at speed. The rise of agile methodologies supports this, enabling IT teams to iterate quickly and stay aligned with evolving business objectives.
More than ever, leadership within IT must adapt. Where technical expertise once reigned supreme, today’s IT leaders must also demonstrate emotional intelligence, business acumen, and the ability to guide cross-functional teams toward commercial outcomes. It’s a different breed of leadership and one that has strategic HR implications in how companies develop, retain, and elevate their tech talent.
New Modes of Service: Adapting IT Operations to Fit the Business
As organizations decentralize decision-making and embrace flexible platforms like SaaS, the nature of IT service delivery has fundamentally changed. “Mature IT organizations have solid partnerships with their business and they are able to understand the context of their work,” Congdon explains. “In the future, it is going to be even more important for IT organizations to assume a greater business leadership role while at the same time ceding technology leadership to other parts of the organization.”
This dual movement leading strategically while enabling autonomy is shaping the next wave of IT culture. With business units increasingly empowered to select tools, sign up for cloud services, and configure mobile applications, IT's role is no longer about gatekeeping. Instead, it’s about architecting an ecosystem that encourages experimentation while maintaining guardrails for security, compliance, and performance.
The implications for workplace culture are profound. Flexibility is no longer a perk, it’s expected. And with employees engaging more directly with digital platforms, the expectation is that IT will not only support but enhance the user experience. That calls for closer integration with functions like user experience design, change management, and even internal communications.
Talent management strategies must also evolve. Organizations need IT professionals who are comfortable with ambiguity, willing to collaborate across disciplines, and skilled in translating business needs into digital solutions. The most successful tech teams will be those that cultivate versatility, hiring individuals who can move fluidly between coding and conversation, between architecture and alignment.
As SaaS platforms become the norm, and mobile-first design the standard, HR leaders must work alongside IT to support continual learning and re-skilling. Internal career mobility will depend on it. So will retention.
Toward Collaborative IT and Open Organizations
Lee Congdon’s perspective on the future of IT isn’t isolated to technology, it’s embedded in a broader cultural and organizational shift. His experience at Red Hat, a leader in open-source enterprise solutions, offers a clear vision for how IT can evolve inside open organizations. These environments aren’t just tech-savvy; they’re built on principles of transparency, shared responsibility, and trust.
Open organizations are defined by their willingness to invite input from across hierarchies. Instead of top-down decision-making, they thrive on opt-in participation and iterative improvement. Congdon’s emphasis on mature IT partnerships reflects this model, IT does not serve the business; it is part of the business. Every department, including HR, becomes a stakeholder in digital innovation.
This model significantly influences organizational agility. With IT leaders participating early in strategic conversations, and business leaders embracing tech fluency, the barriers to innovation fall away. Agile product cycles, rapid experimentation, and collaborative iteration become possible and scalable.
For HR tech, this matters deeply. Human capital systems, workforce analytics, and engagement platforms all require cross-functional buy-in to succeed. Open organizations encourage this synergy. Instead of imposing solutions, they invite departments to co-create them, resulting in better adoption, stronger performance data, and more resilient strategies.
The future of work hinges not only on what technology enables, but on how organizations integrate that technology into culture. As Congdon suggests, the best IT organizations are not simply keeping pace with business change, they’re helping define it. And they’re doing it by building cultures where everyone has a voice in shaping what comes next.
Key Takeaways from Lee Congdon’s speech
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IT leaders must embrace a strategic role: No longer reactive service providers, IT teams must proactively identify revenue opportunities and business improvements.
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Business leaders must understand the value of integrated tech partnerships: Success now depends on involving IT early and often in business planning and execution.
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Legacy systems slow innovation: To move at the speed of market demand, organizations must modernize infrastructure and flatten hierarchies that block communication.
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Shared strategy equals shared success: When IT and business co-own initiatives, outcomes are stronger, faster, and more scalable.
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Culture drives collaboration: Open organizations foster trust, flexibility, and participation, key ingredients for enterprise agility and HR tech transformation.
FAQ Section
What is the changing role of IT organizations in business today?
IT is evolving from a support function into a strategic partner that directly impacts revenue, growth, and innovation. Rather than simply implementing tools, IT is now expected to initiate solutions, co-lead digital projects, and help shape business direction alongside other departments.
How can IT and business teams better collaborate?
Collaboration improves when IT understands business goals and business teams understand the value of technology. Cross-functional planning, shared KPIs, and open communication channels are critical. Embedding IT members into business units, or creating agile pods that mix tech and business talent, can accelerate alignment and results.
What does an open organization look like in practice?
An open organization invites participation at all levels. Decision-making is transparent, feedback is encouraged, and innovation can come from anywhere. In practice, this means flatter structures, open dialogue between departments, and systems that reward initiative and collaboration over hierarchy.
Why does IT leadership matter in talent management and workplace culture?
Strong IT leadership creates a ripple effect across the organization. It ensures that digital tools align with employee needs, encourages continual learning, and supports internal mobility. Good IT leaders also influence culture by modeling transparency, responsiveness, and collaboration, qualities that strengthen retention and engagement.
How can IT help drive employee engagement?
By building intuitive, relevant tools and workflows that reduce friction, IT makes daily work easier and more meaningful. When IT teams involve end users early in the development process, they create solutions people actually want to use. This co-creation builds trust, improves satisfaction, and supports a culture where employees feel heard and empowered.