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David Blanchard of IndustryWeek recently published a story “The Road to Recovery Goes Through IT” that focuses on survey results from more than 300 IT leaders. Improving operational efficiency will be what gets companies through the recession. This may be stating the obvious, but competitive advantage through innovation is the top priority. The motto of “doing more with less” will continue to be the directive as more than one-third are now working with decreased budgets seeing a 17% decline from the previous year. Here are the main highlights:

  • IT projects have realized success. 23% of respondents say their completed projects achieved excellent results in the last year, meaning their projects met client expectations and were delivered on time and on budget. 66% say they achieved good results, meaning they met user expectations and delivered within 20% of time and budget estimates.
  • IT leaders need to be meticulous in managing offshoring partnerships. According to the survey, respondents saw a decline of 5% in the outsourcing efforts that met expectations from 2007 to 2008 and a 7% increase in the number of outsourcing failures. This will require the IT department to manage these partnerships even more tightly to achieve value and efficiencies.
  • IT budgets are in decline. No surprise here: 34% of respondents report a 17% decline in their annual IT budgets over the past year. The median IT budget, according to respondents, is 5% of the company's total revenue.
If you’re not managing and collaborating with your customers and partners and within a cost-effective approach, you’re at a huge competitive disadvantage. While cost cutting is rampant, the goal should be to develop a strategy where you can position yourself for growth now and in the long term.

Check out the article http://www.industryweek.com/articles..._it_18699.aspx

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