Credit crunch, downturn or recession - call it what you will, 2008 is likely to be a difficult year for the UK and the global economy. How should chief information officers (CIOs) best prepare for the changing nature of economic conditions, and how will their preparations help to improve business efficiency?

This month's Computing Business (out Thursday, 22 February: see Further reading, below, for issue index ) polled a panel of business technology experts for their opinions. The results suggest six key tips for recession planning in 2008:

1. Technology leaders will need to work even more closely with line-of-business managers to decide on priority projects
2. Leading-edge CIOs will be change managers, prepared for various scenarios
3. Metrics management will be crucial to ensure all suppliers are providing best value at all times
4. Several processes will be increasingly fundamental during the belt-tightening period, notably virtualisaton, consolidation, outsourcing and green computing
5. Regional variations in economic performance will mean CIOs will need to be able to quickly switch activities and priorities between countries
6. CIOs will have to be make tough decisions to save the business cash, such as delaying capital investment, cutting staff and cancelling projects

Here are some of the responses from the panel. The full results can be found in the further reading list below (Putting IT to good use in a recession). 

"I work closely with our business domain experts to understand their evaluation on how the economic situation may impact business. Using such insight, I can generate a minimum of two alternative portfolios to match potential circumstances. Also, there are likely to be projects I want to complete to drive the planned benefits; for example, cost reduction or business generation. And depending on business priorities, I may need to expedite specific projects to deliver the benefits sooner rather than later."
Jeff Roberts, chief information officer, Norton Rose

"Our members plan to make more of virtualisation technology and increase the level of outsourcing. What differentiates our leading CIO members is their ability to deliver. Vanguard CIOs will always be well-prepared and able to accommodate business change. They will have thought through various scenarios and worked plans through with their executive-level colleagues."
Alistair Russell, development director, CIO Connect

"While nobody should be in doubt that tighter belts will mean CIOs paying close attention to supplier performance metrics, it will not be simply the case of the thumb screws coming out once the share price falls. That said, users will prepare for the future by looking carefully at their tactical supplier relationships ­ such as offshore providers ­ and ensuring that commoditised services provide the best value."
Ollie Ross, director of research, The Corporate IT Forum

"For businesses with global reach, we note that the clouds are gathering rapidly over the UK, US and Japan, but some other parts of the world are doing fine. CIOs should anticipate and plan for business leaders rapidly switching activities and priorities towards growth regions. Do not set your 2008 project portfolios in stone, but do warn your management team to expect changes at short notice. For example, the project to expand server capacity in China might be accelerated, while the laptop upgrade in the US is postponed."
Mark Raskino, research vice president and Gartner fellow

"Understand exactly where your cash goes and then meticulously attach costs with a self-funding programme. Also, look at the software tools you use, what can you lose and can you break from the payments? Green computing is helping technology leaders realise considerable benefits, and you should consider environmentalism, even if only for the most inefficient elements of your infrastructure."
John Proudlock, transformation director, Vertex Financial Services

"Most technology leaders know where to look for savings in the IT budget: delays in capital investment in equipment; cutbacks in contractors and consultants; cancelling projects with marginal returns on investment; re-negotiation of vendor contracts; and greater use of efficiency tools, such as outsourcing or consolidation. Calculate potential savings and risks, then identify projects or investments that need decisions now."
Andrew Bartels, vice president and analyst, Forrester Research

Further reading

• Computing Business, Issue 20: Full article index
• Computing Business: Putting IT to good use in a recession
• IT needs to show the boss it means business
• Depressed technology professionals need a boost
• Is IT always a business issue?
• The adventures of a technology career

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