Managing the enterprise IT budget is a critical business function. And when you’re hiking down the uncertain valley of economic recession, there’s really no way around budget cuts. At a time when Big Tech is actively laying off employees to meet budgeting requirements, should you follow the herd?
Probably not. Here are some insights from my personal IT budget cut playbook explaining why.
Talent is Your Top Asset
When you’re a CIO, you’re well-versed in the importance of finding and retaining quality talent. Lucrative opportunities tempt your workforce, client requirements are growing increasingly complex, and meeting deadlines is impossible without a solid team to depend on.
That’s why trimming headcount is the last resort I avoid at all costs. Talent is your most important asset; if you let it go you’ve probably failed at managing it.
Upskilling instead of Downsizing
Technology teams tend to work in silos that limit their exposure to diverse verticals. You can turn IT budget cuts into an opportunity that addresses this issue.
Don’t downsize. Upskill instead. Not only do you deliver more with this approach, but you also empower your team for future opportunities. You will find the team assuming additional responsibilities and lowering the overall project costs in no time.
Tap into Technology
You’ve probably sold the importance of digitization to your potential clients. But how efficient are your in-house processes?
Tap into your greatest skill to tide over budget cuts. Automate internal processes, derive data insights and employ efficient tracking mechanisms to find and fix resource leaks. Employ technical solutions that save you time, effort, and ultimately money. In a nutshell, treat your internal team as your customer and deliver the same technical benefits you promise a client.
“Be the change you wish to see in the world” — Mahatma Gandhi.
Get Your Priorities Right
While taking on every IT opportunity in a bearish market is certainly tempting, treading carefully is crucial during IT budget cuts. Squandering your limited resources on unpromising projects hurts you both in the short and long run.
Pick your clients carefully and prioritize projects that offer long-term engagement and growth. Don’t compromise on the quality of work you seek for short-term financial gains.
Embrace SAAS, PAAS, and IAAS
Cut down hardware and software costs by integrating with SAAS, PAAS, or IAAS frameworks. This nifty solution fuels enterprise growth while minimizing resource acquisition costs. Plus, disposing of unused resources is instant and hassle-free.
Personally, I depend on my technical experience to pick both the service model and the provider. Our teams are more comfortable with Amazon Web Services, and we employ their services to build cloud solutions for our clients.
Communicate and Seek Inputs
You don’t have to solve every problem on your own. Work with your team to identify areas that can be targeted for cost-cutting during an IT budget cut. Keep communication channels open, encourage employee suggestions, and keep an open mind.
Some of our most surprising cost-saving suggestions originated at the lower levels of the organizational hierarchy. A CIO may know a great deal, but certainly not everything.
The Herd Might be Headed for the Cliff
Finally, the needs of Big Tech are different from the needs of small and midsize businesses (SMBs). These companies have been around long enough to carry out massive layoffs during IT budget cuts and still attract top talent. Your enterprise might not bounce back from similar risks.
Fast-growing startups must keep their resources engaged and avoid grabbing the spotlight for the wrong reasons. So following the herd might just lead you to the edge of the cliff.
In summation, rely on your expertise, meet your organizational needs, and work with your team to meet those budget goals. Every organization is different and requires different cost-cutting tactics. Continue to learn from Big Tech but refrain from blindly adopting their strategies. They can afford it. You probably can’t.
So those are some of my personal tactics to tide over IT Budget Cuts. What strategies do you employ during a budget cut? What were the results like? I’d love to learn from your insights. Connect with me on LinkedIn.
