As the credit crunch continues, IT managers are under increasing pressure to reduce budgets, with projects involving relatively unproven technology likely to be first for the chop.
“IT budgets haven’t been reduced on a wide scale yet, but the mentality of firms is changing, and CIOs are preparing for their spend to be scaled back,” said Steve Sutton, vice president of Capgemini’s Technology Services division. “People are moving back from leading-edge and innovation projects, such as Web 2.0, and are instead thinking about going back to basics with their technology projects.”
A recent report from analyst firm The Hackett Group suggests that a typical Global 1000 company can shave millions of pounds from its IT budget without impairing organisation performance, by moving to “world-class efficiency”. According to the report, the hallmarks of a world-class IT function are “architecture complexity management, centralisation, demand management and sourcing”.
