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Downsize IT Staff for Future Gain with Minimal Pain

Apply a quick and steady hand. Cut, but don't amputate.

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  • Staffing costs comprise the biggest piece of the IT budget. To really cut costs, staff must be a target, but cutting staff is painful and hard to do objectively.
  • Maintaining morale and minimizing risk are top priorities during downsizing, regardless of the time frame given to execute the change.
  • This solution set will help make quick, smart, and survivable staff reductions.

Our Advice

Critical Insight

  • Layoffs are often left too late in the cost-cutting game, leading to sub-optimal decision-making. Cut deep and early with layoffs to contain the pain and realize the financial benefits early.
  • Target administration, middle management, and applications roles first since they're least likely to negatively affect IT service delivery. Be cautious when cutting the help desk if service quality will be negatively affected.

Impact and Result

  • Understand the implications of different types of staff cuts to minimize the risks brought on by poor decision-making.
  • Be sensitive to the negative human impact of downsizing by being as fair, open and decisive as possible.
  • Leverage Info-Tech's exploration of IT leader experiences to gain real-life insight into staff downsizing practices.

Research & Tools

1. Explore the tactics and pitfalls of trimming staffing costs.

Learn the fundamentals of staff downsizing based on different targets and time frames.

2. Quickly prioritize where to make staff cuts first.

Target specific functional roles in IT with the goal of preserving the quality of IT service delivery.

3. Practice complete due diligence to make objective and optimal reductions.

Understand the end-to-end downsizing decision-making process, from prioritization to reorganization.

4. Manage communication and morale.

Limit risk, keep the staff you need, and put your IT department in a position to thrive going forward.

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