To recap briefly - Our analyst discussed how crisis related budget cuts might affect IT - he discussed two of four ways to cutting the IT budget - Cutting the most expensive people and cutting the newest people. Here is the second part of the Analyst note:
Two more ways to cut budget:
3. Cut development. No, you won’t affect most production if you kill development/applications-upgrades. However, the “technological debt” you’re borrowing from the future hurts three things: a) competitive functions where that project may be what keeps your enterprise going, b) functions that are required by law, regulation, or public expectation, c) the “technological debt” is so big that hardware breaking down, security risks, and poor documentation is making the function impossible. 4. “Outsource the function to someone else” A favorite tactic to cut employees (and make them someone else’s’ contractors), cut doing something and letting someone else do It (like level 1 desktop support), or laying off full time people and offering them part time contractor status to do the work. Is your enterprise ready to let these key functions NOT get done? Many enterprises have found that costs actually increase when trying these techniques without a lot of process and execution planning – planning is something that you may not have time for now. There are viable answers that avoid the pitfalls of these actions... ---- come back tomorrow for the answers that will probably happen now ----
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