2009 TechNO Expo

While everyone is more aware of budgets in general, the fundamentals are critical to success—plan, prioritize, and execute. Many of our clients for years have used virtualization, outsourcing, near shoring, off-shoring, and other strategic initiatives. The economic slow down has not “caused” these strategies, rather the desire and need for continual improvement has driven these changes. We’ve seen CIOs try to optimize cash and increase returns by selling and leasing back hard assets, or getting favorable vendor financing on large capital expenditures.

Green initiatives in the IT world help reduce consumption of energy and save money. An IT organization is not going to balance their budget by going “green” but they are going to save money. For example, in a recent survey conducted by Enterprise Management Associates, it was reported that an IT department with 1,000 users could save up to $73,000 annually by going green through better power management on their PCs and laptops!

It’s always smart to consider outsourcing and other cost saving programs, but firms should not undertake outsourcing as a tactical response to a short-term problem. These types of strategic decisions should have little to do with economic cycles. IT leaders may be able to negotiate more favorable terms because of the financial status of the economy, but to make an outsourcing decision based solely on today’s economic conditions is shortsighted.

With the financial debacle, firms across all industries can expect to be more highly regulated than ever before. After pumping trillions of dollars into private industry, public opinion will demand governmental oversight. The ability to track and report on your products, services, and people will be necessary. By working closely with compliance departments, legal experts, and industry organizations, forward-thinking IT leaders will have an advantage over their competition when the changes come.

What is exceptionally challenging in this environment is the need to provide an even stronger return on investment then just a year prior. The push for even better returns in well managed organizations has caused many firms to tackle problems and budgets in ways they never have before. Thankfully, the majority of firms are passing this test with flying colors.

John Scanlon, partner, LogiSolve, LLC, Plymouth

Yes, spending will be tight in 2009. That said, our Minnesota clients have been value conscious for many years. For example, we have a division focused on digitizing paper prescriptions and forms to help the health care industry lower costs.

In the event you have a long-term internal project, now is a great time to hire full-time people who are highly qualified and will be reasonably priced. In the event you have a less consistent workload, utilize a local consulting company with a reputation for top talent. Avoid firms that provide college graduates at high rates. Now is the time for every person in your building to be a leader and top performer.