ABSTRACT
Downsizing allows applications and information to be located closer to the departments and individuals using the resources. Downsizing can offer companies several new productivity options, particularly in: managing systems, support, and maintenance costs; applications development; managing new technology implementation; and optimizing data access throughout the organization. The best way to defuse emotional and political time bombs that can jeopardize the success of downsizing is to include all affected parties in the planning process. The planning process should be participative and should start with the articulation of the organizational goals targeted by the downsizing effort, outlining anticipated costs and benefits. The cost benefits of downsizing can be near-term, as in the reduction or redeployment of internal IS staff, or long-term, as in the investment in newer applications and technologies. Moving applications to microcomputers and local area networks requires specialized management, technical staff, and testing equipment.
