IT wish lists often resemble a technology shopping list — new PCs, routers, servers, and applications, more training and bigger gadgets. My New Year’s wish list contains none of these, but if my wishes come true, 2008 can be one the best years for IT.
The first item on my wish list is economic stability. Without economic stability there is no business stability and without business stability all the funding for new servers, platforms and technologies can quickly dry up.
The mortgage and credit crisis combined with rising fuel costs have cast a shadow over many economic forecasts for 2008. Some economists are predicting the possibility of higher inflation rates and slower business growth — the “stagflation” of the 1970s. If this happens, new technology projects may be put on hold, open positions may not be filled and reductions in force may become as prevalent as they were during the dot-com bust. Increases in technology spending rely on business growth and there is a definite risk of slower growth in 2008.
Along with economic stability I wish for a stronger dollar. The weakness of the dollar in relation to other currencies is increasing the risk of business slowdowns as investors cut back on financing. A weaker dollar also increases the costs of imports and as almost every piece of technology equipment from PCs to PBXs consists of imported components, this means more expensive equipment. And companies encountering slower growth and/or reduced sales don’t approve many requests for more expensive equipment.
The final item on my wish list is for something that can help manage the impact of funding cuts, hiring freezes and cost increases. It’s a wish for IT to start viewing itself as a service provider. How will this help? Because then the service will be the focus instead of the technology, platform, or application.
Every major IT function from e-mail to CRM to networks can be provided in a variety of ways from shareware applications to complex in-house infrastructures to third-party vendors. However, most IT departments focus on in-house technologies and not the delivery of the service. If funding dries up, IT’s value is often put at risk due to an inability to purchase certain equipment or obtain certain applications. By shifting the focus from the technology to the service being provided, IT departments can become more flexible and continue to bring value even during business downturns.
If operational budget cuts make supporting in-house networks too difficult, third party managed network services can be used. If the budget for new software is slashed, software-as-a-service can be considered. If staff reductions make it impossible to hire experienced programming staff, outsourced development services can be implemented.
There’s not much that IT managers can do about economic stability or currency strength. But by focusing on the IT service — and not the underlying technology — we have a variety of options that can lessen the impact of any financial challenge the New Year may bring and enable us to continue delivering value to our business. Here’s hoping that all our wishes for the New Year come true.
