The Pitfalls of IT Cost Cutting

The statistics are depressing—2009 budgets are only growing ~1.5% (in nominal terms), 47% of companies surveyed have introduced hiring freezes and 24% have increased hurdle rates for new projects. In addition, 55% of CIOs indicate plans to make cost-cuts of 10% or more, with 25% indicating cuts will top 20% according to a survey conducted by the CIO Executive Board of more than 50 CIOs at leading organizations throughout the U.S.

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