
There is evidence that 2nd and 3rd round cutting of IT budgets is jeopardising the ability of IT organisations to adequately service the business.
The current economic climate is encouraging a review of new technologies such as cloud computing, as well as more established options such as outsourcing to meet the demand for lower costs, but these initiatives are being implemented as short-term measures.
Very few organisations have put in place formal governance structures to evaluate the tradeoff between risk and cost reduction - potentially impacting the ability to support the business as the economy picks up.