Although times continue to be difficult for many companies, there are early signs that the global economy is starting to improve. This recovery will be neither swift nor easy.
However, after more than a year of dismal news — precipitous declines in revenues, plummeting stock prices and scarce capital — businesses are beginning to ask “what’s next?” in more optimistic tones.
There is a correct, two-part, answer to that question. First, companies cannot relax their vigilance in eradicating excess costs from their IT operations. Even when budgets start to expand again, you must resist the temptation to go back to old spending habits. You must continue to scrutinise your capital investments as well as ongoing operational expenses for ways to contain or even cut costs further.
Of the private sector respondents to our survey of global IT leaders, 39 percent said that if they had anticipated the recession, they would have cut costs. Their next highest priority? To work more closely with suppliers to achieve better IT infrastructure efficiencies (17 percent).
Interestingly, public sector organisations would have cut costs and worked with vendors for efficiency in equal proportions (Figure 1). In general, although the exact numbers varied considerably from industry to industry, the trend was clear: enterprises, in hindsight, wished for greater cost and operational efficiencies.Leave a comment on this article