Examining the Role of FinOps in Enhancing IT & Business Alignment in Cloud-Adopting Organizations in the Eastern Province of the Kingdom of Saudi Arabia: Employees’ Perspectives

Abstract

Aim/Purpose: This study aims to investigate the correlation between FinOps procedures and the perceived alignment of IT and business in firms that have adopted cloud technology in the Eastern Province of the Kingdom of Saudi Arabia. As more and more businesses use cloud computing, managing variable, usage-based IT expenditures has become a strategic issue. FinOps is a new way to manage finances that aims to make costs more clear, hold people accountable, and encourage collaboration between IT, finance, and business activities. This study examines whether the implementation of FinOps methods enhances the perceived alignment between IT operations and business goals. Methodology: A quantitative research methodology was utilized using a structured online survey. The survey targeted employees in IT, finance, business, and cloud-related roles in cloud-adopting organizations in the Eastern Province of the Kingdom of Saudi Arabia. A total of 646 valid responses were analyzed. Descriptive statistics, reliability analysis, and simple linear regression tests were conducted using SPSS 23.0 to examine the relationship between FinOps practices and perceived IT-Business alignment. Findings: The study reveals a significant positive relationship between the three FinOps practices and perceived IT-Business alignment. For instance, Cloud Cost Transparency (ß = 0.933, R² = 0.858, p < 0.001), Shared Financial Accountability (ß = 0.938, R² = 0.861, p < 0.001), and Cross-Functional Collaboration (ß = 0.940, R² = 0.858, p < 0.001) were revealed as strong and significant predictors of perceived IT-Business alignment, with each hypothesis being confirmed. This study therefore reveals that FinOps, as a discipline of IT-Business governance, focusing on IT-Business cost transparency, financial accountability, and inter-functional collaboration, is significant in achieving IT-Business alignment in organizations using the cloud technology. Besides the contribution of this study to practice, it also contributes to the achievement of the following Sustainable Development Goals: Goal 8 - Decent Work and Economic Growth, Goal 9 - Industry, Innovation and Infrastructure, Goal 16 - Peace, Justice and Strong Institutions, and Goal 17 - Partnerships for the Goals. Practical Limitation: The study depends on perceptual data obtained via a self-reported, cross-sectional survey, which may be influenced by response bias and does not permit causal inference. The exceptionally strong statistical relationships should therefore be interpreted as evidence of association within the sampled context, rather than as proof of causality. Recommendation: Companies that use cloud computing should think about using organized FinOps processes to better align IT and business and better manage cloud investments. Originality: This study adds to the small amount of academic research on FinOps by using established alignment and governance theories to look at how it relates to perceived IT & business alignment.