When George Colony hosted a Forrester Business and Technology Leadership Forum in Orlando Florida, the conversation turned to how to handle a recession as a CIO. This was in 2008, right at the panic stage of the recession in America. The advice that flowed between the CIOs and CMOs was gathered by Colony and shared in this article. A surprising detail””considering the topic””was how most CIOs believed they would not slow down technology budgets:
First of all, many in the room have no plans to slow down their technology budgets for 2009. While the low was a -6% plan for next year and the high was a 30% increase, the average was a 6.5% increase — almost dead on the Forrester estimate for 2009 tech spending increase. Many CIOs are in the middle of re-building infrastructure, implementing new applications, and modernizing data centers — projects that are hard to stop on a dime. That said, there was a lot of wisdom in the room about best practices for a recession.
While this did occur in some places and not in others, what is valuable from the article is particularly useful in the advice that was generated, including: using internal skills building rather than outsourcing, keeping your best people growing, accelerate virtualization, and look for vendor discounts and re-negotiation opportunities. These bits of advice are perhaps more applicable to a recession era business, but can become great pieces of advice for any business that wants to cut down on costs while heightening profitability and efficiency.