The leaders of most organizations have a complex array of decision criteria to balance building for business growth and strategic cost cutting. At this point, the tactics for reducing the costs of business such as delaying projects and downsizing have been done.
Where is their next source of savings originating within the enterprise? If your organization has an inventory-only approach to the management of IT assets, then IT assets are an untapped reservoir of ongoing savings awaiting executive support. Without executive support, it is likely that IT asset costs are not available, either because they aren’t managed or because there isn’t confidence that there is an alternative to the chaos that exists in the IT realm. The answer is an IT Asset Management (ITAM) program that manages the assets from a business perspective and directly links IT spend to the organization’s goals.
With a widespread economic downturn well underway, top managers are prioritizing cost reduction as never before—and they are looking for new solutions and proven practices. It’s inevitable that cost-cutting efforts will land heavily on IT, since it is a significant cost center and because it impacts costs in almost every business activity.
With the chaos of the financial markets imploding over the past few weeks, it is easy to imagine a crunch in information technology budgets and associated spending in 2009. The analyst community has quickly revised their spending forecasts downward. According to Peter Sondergaard of Gartner, IT spending will rise 2.3% in 2009, down from an earlier projection of 5.8% with the US and Western European markets being hit the hardest.
“Innovate! We need to grow!” thunders the CEO. Yet not much seems to happen. Efforts peter out, or just never really get started. Business as usual seems to remain the order of the day.