Tuesday, November 6, 2007

IT Leaders Should Prepare Two IT Budgets for 2008

According to Gartner, Chief information officers (CIOs) should create two IT budgets for 2008. Analysts warned that due to the recent turmoil in credit markets around the world and continued uncertainty surrounding the future economic climate, companies need to plan for all eventualities.

Gartner advises CIOs to create two separate budgets; the first should reflect the guidance already provided by senior decision makers but this should be supplemented by a second ‘back-up’ budget that assumes the need to cut costs in response to the arrival of a business slowdown.

CIOs need to have a ‘recession budget’ and business plan ready for immediate implementation long before being asked to reduce costs. To be meaningful, Gartner recommends that such plans should target a decrease in IT spending of at least 10 per cent below the highest annualized IT spending run rate levels attained in 2007.

Gartner said that rather than viewing the possibility of a significant business slowdown or recession with trepidation, organizations should use it as an opportunity to create a solution that will enable the enterprise to react with speed and certainty if the worst economic concerns come to pass.

More information can be found at www.SupportIndustry.com

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