Cost Management Is Top 2009 Priority For IT Decision Makers
Companies are making announcements left and right about their plans of downsizing their operations and cutting their labor force as well. All leading to one thing during an economical slowdown — cost cutting. Companies are cutting their budgets from all sides, in the hope that saving more money will keep their company afloat during this condition.
There’s nothing wrong in cutting cost, but I think it would be better if we can concentrate on cost management than cutting cost. What’s the difference you might ask? Cost cutting is simply lowering corporate operation expenses while cost management is determining the areas where we can save, and put that savings into a more productive use within the company. You can cut your expenditures in one area, and relocate the budget to a revenue producing projects.
According to the second annual year-in-review survey of business and government organizations by CDW Corporation, business priorities involving spending dropped from the previous year. Thirty-five percent of IT decision makers report that growing their market share is a top priority for 2009 (down six percentage points from 2008), and twenty percent cite employee recruitment and retention (down five percentage points from 2008). 41 percent of IT decision makers across government and corporate sectors cite cost management as their biggest priority when looking ahead to 2009.
The only surprising result is that 32 percent of IT decision makers cite investment in new products and technologies as the top priority for 2009-an increase of five percentage points from 2008.
Not surprisingly, market conditions presented the greatest challenge to IT decision makers in 2008. Fifty-seven percent of corporate IT decision makers report that the economy was the biggest obstacle to growth-a 16 percentage point increase from 2008. Twenty-three percent said the biggest obstacle was cash flow/access to financing, and 19 percent said internal operational costs.
Other key findings from CDW’s year-in-review survey when asked what is the one most important priority for 2009? The result are as follows:
Growing Market Share – small business (23%); medium size business (21%); large companies (16%)
Managing Operational Cost – small (13%); medium (20%); large (13%)
Employee Recruitment and Retention – small (2%); medium (2%); large (7%)
Improving Technology – small (4%); medium (13%); large (12%)
The immediate effect/advantage of what this so-called recession is for people to re-evaluate their strategies this year. Before they spend their money, they will think twice and even thrice. Keep on praying that this problem will just go away.