Wednesday, October 29, 2008

IT and Cost Cutting

The downturn has affected all of us..........and one knee jerk reaction by many businesses is to cut cost in IT. However an article in McKinsey Quarterly argues against that approach.....

"Economies around the world are slowing down, and companies are looking for ways to trim spending and improve the bottom line. Although information technology often represents a small fraction of the corporate cost base, senior executives inevitably turn their attention to IT budgets for substantial contributions. Yet in some instances, IT investments deliver more value to a company’s top and bottom lines—by creating new efficiencies and increasing revenues—than any savings gained from traditional IT cost cutting."