IT slowdown has its own share of opportunities

Ashu Kumar

The temptation of freezing investments in new information technology (IT) systems and applications is hard to resist in times of economic slowdown. But then, doing this carries the risk of snipping off the vital cords essential for holding together future business growth.

Though most corporates have reportedly slashed their IT expenditure because of squeezed budgets, sustained investment in technology is a must for the IT industry to beat competition, say industry observers.

The squeeze in IT budgets, though, has made the job of IT managers more difficult as they have an additional task in hand — of proving that technology is an effective tool for driving the business vision of companies. These managers not only have to be careful in choosing the right technology and applications but are also under pressure to get value for money.

Though this is not a good time to adventure with new or unproven technology or products, it is a good time to identify problems in existing technology infrastructure. This may lead to a substantial jump in productivity with little effort and investment. For example, investments in network infrastructure to improve better communication and faster information access can provide encouraging results. Or a tiny investment in a small software or device to integrate two business applications can help reduce the process lead time.

This lean period also has its share of opportunities — to re-engineer processes and collect them and preserve historical data of vital and strategic importance. With relatively free manpower resources and not-so-hard-pressed schedules and targets, this task can be quite easy.

This is also a good time to get a few long-term deals at a good price for maintenance and support needs. However, no investment in IT should be made without a predefined performance tracking schedule to manage and control the return on investment, say observers. In fact, vendors can be asked to link their payments with post-implementation performance milestones to guarantee returns.
Infotech is becoming a part of essential business strategies.
Therefore, the tactics of an orgainsation need to be positioned properly. Hence, this is the right time for IT managers to get their act together and prove how the right investment can positively affect bottomlines, even in such lean times.