IT Spending Cuts Cut Deep


Monday's blog headline (IT Spending Hits a Wall, Injuries Expected) prefigured today's Wall Street Journal article on struggling tech companies, which describes the ongoing sell-off in tech stocks as "one of the most vicious in history."

Eric Lundquist wants you to cut more. I disagree with him on the last point -- allowing workers web access doesn't cost much, and things are grim enough without taking away a little lunch-time fun.

More advice here, including thoughts on where to invest.

And some defiance from a commenter: "[R]ight now is for IT to shine. We are the ones who will streamline and save the company a ton of money," followed by a less-cheery take: "New technology will only create more spending and accomplish very little that should have been accomplished before. Users were being forced into upgrades and newer releases when there was no need for them."


5 Comments for "IT Spending Cuts Cut Deep"

  • Ryan December 02, 2008 4:32 pm

    The power of any IT product or solution comes when a majority of employees start using them effectively. But given the hectic pace at which vendors produce new versions and IT dept buys them, most users never use anything properly...Very similar to buying weight loss products every spring.

  • David Long December 02, 2008 10:35 am

    I understand Andy's point above about "eliminated by automation" but have this disagreement with it during these - or for that matter, any - times. Processes should be streamlined or eliminated - period - when faced with the times we have. To keep processes in place but "streamline" them via automation does not serve our clients/companies. I've been called into far too many engagements to "automate this process" where an extensive, honest examination reveals that the process is just another of those "we've always done it this way" functions hiding as a necessary event that did not contribute to bottome line, much less organizational mission. I'll submit that a more strategic role for IT is too help organizations streamline and eliminate - using automation only where it makes sense - but using the disciplines of process planning to force the hard decisions.

  • Andy Weinstein December 02, 2008 8:48 am

    The time to invest is now. For technology providers, the time to invest in strategizing, planning, R&D, and marketing is critically important in this current slowdown in order to be ready for the turnaround, which will inevitably happen as it has time and time again. For technology users, the same rules apply. The time to review old processes and procedures which can be streamlined or even eliminated by automation has never been more critical than today. Providers and users should take this 'slow period' to invest, which will pay huge dividends in the future.

  • Doug Howard December 01, 2008 12:25 pm

    Completely agree that this is the time for IT to shine. Most businesses have not begun to tap into the power of automation. Obviously automation can be achieved through many routes; outsourcing, purchasing of products, or through development. Often, operational cost can be reduced 50-90% through a properly approached automation projects. - Doug Howard, Chief Strategy Officer, Perimeter eSecurity.

  • Mark December 01, 2008 11:36 am

    "Now is the winter of our discontent."

Leave a Comment