[McKinsey Quarterly] When downturns hit, there is a certain inevitability to their impact on IT. Declining profits will place tremendous pressure on IT budgets in most sectors and regions. CIOs will be called on to rationalize projects, downsize organizations, renegotiate contracts, and seek out other cost-reduction opportunities.
Much has changed, however, since the last big downturn, in 2001: technology budgets are larger, businesses have automated more processes, employees make greater use of tech-based productivity tools, and e-commerce has moved to the core of day-to-day operations. At the same time, IT organizations have established better mechanisms to govern IT decision making and have consolidated local IT operations to cut costs.
Taken together, this combination of cost pressures and IT organizations that are leaner, larger, and more vital to company goals will have new implications for business technology in 2009. Here’s what may be in store.
Five trends that will shape business technology in 2009 - The year 2009 will be challenging for CIOs. Here’s how to play your hand