Here Is How CIOs Should Handle IT Budget Cuts
Digital expenses have increased significantly in the last decade. Companies are trying to be on top of their game by investing in their IT ecosystem and digital infrastructure. They are usually responsible for implementing IT budget cuts in the firms. Firms prefer introducing budget cuts due to poor performance of the business or fundamental changes in the organization. Cutting down the IT budget is a challenging task. You must be aware of what IT components have been working well with your firm and what have not. In his article for TechRepublic, Stewart Buchanan shares how you can introduce IT budget cuts efficiently.
Tips to Facilitate IT Budget Cuts
Compare Expenditure with Performance
Buchanan mentions, “One of the most powerful actions a CIO can take is to present a business view of IT spending, empowering executives to see the relationship between spending and outcomes.” Generate department-specific reports of IT spending measured against key performance indicators. If you believe a particular technology is crucial for the business, explain to senior leaders why it is more of an investment than a liability.
Foresee the Business Future After IT Budget Cuts
Conduct a risk assessment with stakeholders to figure out how budget cuts can impact business operations in the long run. Make sure they are not making near-sighted decisions that result in no long-term benefit. It is crucial to let everyone on the decision-making team know that removing a technology does not necessarily mean reducing the expenditure.
Engage Stakeholders to Improve Your Decisions
Buchanan suggests that including stakeholders and other business executives in your IT expenditure plan is a clever idea. Listen to their suggestions and how they plan to tackle IT costs. There might be a few things you do not agree with. In such a scenario, voice your concerns gently, and prioritize business well-being.
Click on the link to read the original article: https://www.techrepublic.com/article/cios-defend-against-it-budget-cuts/