Slashing Computer Jobs Could Leave Firms Ill-Prepared for Recovery

Affiniti, a leading IT consultancy, has warned that companies who cut their IT departments in a short-term bid to cut costs during the recession could jeopardise their business' ability to capitalise on an economic recovery. A survey of 500 IT decision makers showed that 37% planned to cut costs by reducing IT workers in their department rather than through other cost-cutting means. According to the survey, 75% of companies are under pressure to cut IT spending either immediately or within the next six to 12 months, and only 3% are considering reducing internal service level agreements. However, cutting computer jobs in any organisation may be a short-sighted strategy in the longer term.

A strong IT department will be invaluable when the recession begins to lift, as it is widely expected to do in late 2009 or early in 2010. Director of Affiniti Paul Renucci stated: "IT departments must look for alterntive cost saving strategies to headcount reduction, which ultimately distracts attention from the most important issues." The survey also clearly demonstrated that IT managers are failing to capitalise on the opportunity to transform their IT department from a service department to a key strategic partner in the organisation. Although 42% of those surveyed expect IT to play a key role in helping companies weather the current economic storm, only 25% of IT managers rated help their companies increase revenues as an objective. According to Renucci, IT departments must "present themselves to the board not only as delivering intelligent cost savings in the short term, but also as leading innovation which will underpin a successful strategy during the upturn."