It is to be hoped that this week's budget announcement of an increase in capital allowances might help to protect some of the IT related business investments that may be under scrutiny as enterprises seek to cut costs to help them survive the recession.
Understandably a current key focus within many enterprises is the reduction of costs, including IT. The IT budget often is seen as an easy target for such cuts as the budgets are usually rather large, and the components of costs are rarely properly understood by those (usually the C-Suite) who are demanding that the cuts be made. Therefore random and unfocused demands for, say, 10% savings can result in short term benefits to the bottom line but with longer term implications that could compromise growth and strategic development that will be essential for corporate success as, eventually, the economy moves towards recovery.
Enterprise governance has a key role to play in minimising the longer term damage that arbitrary cost cutting demands can have and in ensuring that, during the recession, key investments continue to be made and service levels are not compromised. This requires a strong partnership between business and IT decision makers to help ensure that sensible and informed debate takes place and that the implications, short and long term, of any cuts are properly understood and accepted. This will not happen by accident. Business leaders must recognise that IT exists to support, enable, and enhance the enterprise. The 'no such thing as a free lunch' rule applies to IT cost reduction in the same way as in any other facet of business. The CIO, the CFO and other senior members of the executive team must actively be involved in, and contribute to the debate.
There's a report on IT industry reaction to the Budget here on ComputerWeekly.com.