(By Info-Tech Analyst Jennifer Perrier-Knox- Printed with permission from Processor magazine www.processor.com)
First, an unpleasant truism: The economy is tanking, with no sure end in sight. Accompanying this downward spiral is a corresponding frenzy of activity as enterprises and their IT departments look for ways to reduce costs. However, there's a Technicolor elephant in the room that many are purposefully ignoring, and its name is Layoffs.
Pain Avoidance Drives Behavior
Staffing costs typically comprise 70% or more of an IT department's budget. Reducing these costs is a surefire and often necessary way of saving money. One would think staffing costs would be a clear target for cost management efforts. Not so. While the low-hanging fruit of discretionary spending cuts is very popular and projects to consolidate and virtualize servers are full steam ahead, staff reductions are being given a wide berth.