Published on April 9th, 20100
"Hello, IT? I need some blood out of that stone please"
IT departments are expected to fund their own improvements by realising cost savings in other parts of organisation. That is the view of industry analyst Gartner, which says that while the end of recession halts the recent cost cutting drive, new investment will be hard to come by.
IT is expected to finish restructuring, ‘dump nonperforming or nonstrategic assets’ and provide technologies that help retain customers, but will have to take a ‘very hard look’ at internal cost structures, and review partner relationships to free up finances to fund these projects.
“The long-term focus on efficiencies to reduce exposure to another financial crisis will continue to force IT to make the business of the past more productive, while investing in the future at a rate that does not grow IT costs faster than the business,” says Jorge Lopez, vice president of Gartner.