Study: Recession puts extra pressure on IT execs

The recession has forced IT executives to cut costs while trying to bring in quicker returns on investment, according to a study released Wednesday by AT&T.

For its "Road to Growth" study, AT&T spoke with 77 key IT executives from large global companies. Sixty-four percent said they're under pressure to focus on projects that bring in return on investment in half or less than half the time than in the past. As a result, two-thirds said this pressure has affected their IT budgets, strategies, and priorities.

One CIO said his company is looking at IT projects that deliver at least 100 percent ROI in 12 months--or else the project is cut.

With the recession still in force, companies are feeling the pinch to slash costs and boost sales. Toward that end, 87 percent of the IT execs questioned said that reducing operating costs was "extremely or very important." Improving collaboration with customers and partners was cited by 85 percent as "extremely or very important." And 83 percent cited enhancing workforce performance and productivity as "extremely or very important."

(Credit: AT&T)

The aggressive strategy is seen as prepping companies for an economic recovery next year. Most of the execs interviewed expect a recovery toward the middle or end of 2010. Their overall feeling is that the U.S. and China will be the first countries to bounce back from the recession.

Executives said that investing in business continuity and security could have the largest positive impact on growth as their companies get ready for an economic turnaround.

"U.S. companies are under added pressure to deliver, and IT investments are more critical than ever before," said Bill Archer, chief marketing officer at AT&T Business Solutions. "From the study, we expect U.S. companies to come out of the recession leaner and more agile. Technologies that cut cost, reduce redundancies and loss, and improve efficiencies top the priorities list."

The study was based on interviews with 47 IT executives in the U.S. and 30 in Europe representing global companies with annual sales of at least $1 billion. Interviewed were chief information officers, chief technology officers, and others with direct responsibility for IT budgets and strategy. The interviews were conducted between April 16 and June 19.

[inachu1]

Hire IT admin at only $5. Why not since they are not making at all what they were making in 2000.

Fire the entire IT staff and give yourself a 200k raise like they normally do.
Oh fire John Doe please so I can make an extra 50k then I can go back to country and take the money with me.

Never give IT people the latest in support hardware and leave them in the dark with 8 year old hardware and OS but give the latest and greatest to the VIP,VP and other high level management staff.

[Paydayloans]

I think reducing operating cost by IT executives would somehow help in our problem on economic recession. It would be better if cost would reduced but on the same manner the quality is still maintained. It is really a challenge to the IT executives and to the whole industry of Information technology to create and promote cost effective and productive hardware and software advancements amidst the global recession in our times. The recession may be finally starting to turn itself around. The number of lay offs is slowing ? so even though it's bad news that anyone is being laid off period, the rock bottom in a recession is a better place to be, because that means up is going to be the new direction for the economy. Also, many workers consigned to the unemployment line from manufacturing jobs are starting to get rehired, as firms such as Ford Motor Co, Dell, AK Steel, and OshKosh (the truck company, not the overalls company) are rehiring laid off workers. An end to the recession would be good news, and more available capital for installment loans and investment will lead to more jobs.