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Cuts limit chances of escaping downturn unscathed

Alan Cane
Financial Times, page 2
18 June 2009

Summary

Alan Cane's article discusses the role of CIOs in the current economic downturn.  He cites PA's Outsoucing Survey 2009 - 'Outsoucing - what lies beneath'.

Cane says of the survey: 'Another cost-cutting measure, outsourcing, is expected to grow by just over 8 per cent this year "as organisations look to impose tighter cost control over IT expenditure" according to PA Consulting Group, which regularly surveys the sector. That drive for cost control will include renegotiating contracts and a shift from single-source to multi-source contracts.

'But it warns: 'The need to achieve cost improvements quickly is creating unfeasibly tight procurement and implementation deadlines. This drive to cut a deal quickly can unwittingly become the overriding consideration, resulting in organisations losing sight of the opportunity to use innovation to deliver both strategic and tactical improvements'.' 

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