Greater demand on IT budgets

More than one in two IT directors are reporting cuts to their budgets, even as pressure for IT departments to deliver more rises.

A multinational survey commissioned by Progress Software found that Britain topped the more-for-less stakes, and was also the country with the lowest predicted budget growth over the next five years.

Over 90% of UK IT directors feel that they are facing greater demands on their department than last year – despite 52% reporting cuts in their budget, the research undertaken by Vanson Bourne found.

Budget reductions across Europe are far less prevalent: 32% of IT organisations in Sweden are feeling the squeeze, 28% in Spain and 25% in the Netherlands.

Progress’s EMEA vice president Dennis Allan warned cost cutting in the IT department could impact the performance of other areas of the business. “This is a tough time for IT, which is now being seen as an area where cost can be reduced. But IT is also the key to a more efficient business, so cutting costs in this area can turn out to be counterproductive unless approached the right way,” he says.

“The best thing to do in preparation for an economic downturn is to analyse your main business processes – their performance, complexity, cost, utilisation and contribution to the business – then axe the least important ones, and optimise the most important ones,” he adds.

David Cliff

David Cliff is managing director of Houghton le Spring-based Gedanken, a company specialising in coaching-based support and personal development. Cliff is an experienced trainer, manager and therapist,...

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