Technology Investments

By Deborah Asbrand

Managing amid an economic slowdown is an inescapable fact of corporate life. For executives in all industries, it is as much a constant today as strategizing for growth and market-share gains tomorrow. But this recession brings with it a new and important wrinkle: IT, once considered a discretionary expense, is now the heartbeat of business.

The challenge of how best to invest in IT during a downturn is coming into sharp relief as leaders grapple with the dual tasks of managing IT costs while still spending to maintain efficiency and prepare for the return of market stability. That is, they are honing an IT function that is strategic, innovative, and thrifty.

Investing Strategically in IT

To keep up with the transactions that are the pulse of any company, some amount
of IT spending is fixed and always necessary. What is interesting, however, is that
despite the economic recession and widespread budget cutting, many experts today
predict the ongoing need for small IT budget increases.