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Cost-Containment Part 2: All Hands On Deck

December 8, 2008

Cost-Containment Part 2: All Hands On Deck

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Guest Column: Cost-Containment Part 2: All Hands On Deck

By Jon Toigo, Toigo Partners International

In today's economic climate, an increasing number of business managers are taking the "IT outsourcing plunge," hoping that third-party support will enable them to improve service levels while also cutting costs. Unfortunately, they often overlook past lessons.

The meaning of the C-4 Era, characterized by a business management focus on cost-containment, compliance, continuity, and carbon footprint reduction (aka green IT operations), first hits home for many IT professionals in the form of two things: a freeze on new technology acquisitions (CAPEX budget) and cuts in operations expenditures (OPEX budget). Translated: you aren't allowed to buy any new gear, and you may find yourself dreading a pink slip in your next pay envelope.

It is becoming more commonplace to come to work on Monday and discover that the cubicle or desk next to you is suddenly vacant, with all evidence of its previous occupant removed. The inevitable follow-on is a notice from your boss that your workload has now been increased to include your former neighbor's tasks. This adds to the responsibilities you acquired following reductions in force that occurred last month and the month before.

If that bit of added job stress isn't enough, the company rumor mill provides insight into management's latest plan. The front office is expecting improvements in service levels — more work to be accomplished at the end of the day — despite staff reductions. And if the remaining crew in the IT department isn't up to the task, a stack of bound proposals is sitting on the conference room credenza bearing the logos of various outsourcing agents (including your "trusted vendor/partners") that will be considered at next month's board of directors meeting.

Click Here To Download:
Guest Column: Cost-Containment Part 2: All Hands On Deck

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