My Mexico’s Nearshore Blog

IT executives may feel their departments are especially vulnerable in an era of shrinking corporate budgets. The good news is that there are several actions executives and hiring authorities can take to demonstrate IT’s strategic value and help their companies weather the economic storm.

Many IT organizations are working to identify discretionary spending and activities versus non-discretionary spending and activities. This effort does not just focus on hardware and applications, but on staffing levels as well. As they identify what aspects of a project are ‘nice-to-haves’ compared to ‘must haves,’ some companies may be trimming a project’s cost by eliminating the ‘nice-to-haves.’ When that approach is not possible, they often outsource projects to Nearshore IT staffing and outsourcing solutions companies in order to keep the key project on target and on budget.

Managing through an economic downturn isn’t just about reducing current overhead, but also reducing future costs. Companies are expanding outsourcing IT projects in order to conserve internal resources and reduce future costs.

Ways Companies Manage IT in a Recession

Demonstrating how IT is an asset and not an expense;

Knowing what is discretionary spending (and what isn’t);

Outsourcing to reduce overhead;

Instituting green initiatives to save power (& expenses).

 

The good news is that many companies are planning for the “bounce-back.” They realize that if they cut too deeply now, they will be unable to fully exploit the eventual upturn.