Weak demand continues to force organisations to reduce their cost base and IT budgets are still a major target for cost-cutting. This puts CIO's under intense pressure to balance cost-cutting with the need to deliver high-value services to the business.
Where cuts are made they must improve efficiency, not reduce effectiveness.
The challenge for CIO's is to:
A CIO no longer has to pay the overhead-laden day rates of large consultancies
Resourcing of new projects needs careful thought. Projects need to be delivered on time and to budget if they are to realise the forecasted business benefits.
If organisations are running lean staffing levels then it is unlikely that project resources will be found totally in-house. In most cases internal project teams will need to be supplemented with external resources.
A benefit of the recession is the number of independent, highly-experienced project managers and consultants available. A CIO no longer has to pay the overhead-laden day rates of large consultancies. Using independents, a CIO can get the right project resources from a smaller budget.
Finding consultants with the right skill level is straightforward. Organisations such as Altica operate an 'Associate' model which means that we can put a team together with the right skills and experience from our pool of Associates.
The recession can be seen as a positive force which is reshaping the delivery of IT projects. Organisations are running leaner but can still improve their competitive position by delivering value-added projects from their reduced budgets.