Managing Cost in a Recession

The credit crunch – evolve or die?

The economic environment is always evolving, so it makes sense to plan and prepare for the bad times as well as the good. Kneejerk reactions to recessionary conditions – e.g. staff reductions, price cuts etc. – are usually motivated by panic rather than reason. In fact, one of the simplest and most effective ways to manage cost in a downturn is to take a fresh look at how your IT is structured. Does this align with your company’s organisational goals? If not, your technology systems are unlikely to be adding value to your business. Don’t be afraid to try a new approach.

Cost vs. Value

While it is tempting to focus on cutting costs, your priority should in fact be making sure you’re getting value for money. In the current climate, emphasis has switched to risk containment - making the most of what you've got. There should be a clear synchronisation of your IT delivery with your own particular business needs. In a period of instability, for example, you may need more flexible provision, fewer resources or more users in different locations. The challenge is to find the most cost effective way of doing this without sacrificing quality, reliability or control.