When IT Cuts, Do Vendors Bleed?
Forrester Research is out with a new report on the strategic priorities CIOs need to employ to accelerate out of the downturn (excerpt here.)
The findings are interesting in so much as--like most research--they validate what most of our assumptions. One of the more obvious findings (in my eyes, at least) is that as CIOs pursue cost cuts and efficiency boosts, their vendors are likely to suffer.
Some of the findings in the report (but not in the summary) shed some light on this: when asked what cutbacks they're already doing or planning, almost eight in 10 IT execs cited deferring purchases of products and services, making it No. 1 on the list.
Third on the list was reducing the scope or reach of IT projects to gain cost savings (64 percent), tied with renegotiating existing service contracts. Delaying active projects (53 percent) and renewing service contracts (25 percent) also made the list.
Those numbers appear to show that IT vendors and providers could be left in something of a lurch. And recent headlines show that many of them are, in fact, suffering.
Granted, those particular figures come from only 36 "enterprise IT decision-makers," but it's still a decent barometer of what's happening in the IT management world.
CIOs have made no secret of their desire to renegotiate some existing agreements with vendors and service providers. And many CIOs rightfully feel like they have a considerable amount of leverage.
Dealing with vendors and service providers has never been a cake walk, as Ericka Chickowski points out in a recent CIO Insight feature. (In fact, there are some key mistakes many rookie CIOs make in dealing with their partners.)
But as she explains, these partners don't need to be thorns in the sides of CIOs. Hopefully, in light of Forrester's findings, CIOs don't scar their vendors and service providers as they look to make the changes mandated by the current economic pressures.
Tell us, how are you working with vendors to accomplish your goals in the recession?