ABSTRACT
Some of the ‚rst areas ‚rms will look to cut costs are technology, human resources, and operations-often viewed as nonrevenue-producing cost centers, which are mere necessity. Arguably the most valuable of these departments is the information technology department and yet still often ‚nds itself under the knife as one of the ‚rst areas to be hit in recession, often to the ‚rm’s long-term detriment. Karl Flinders discusses this point in an issue of Computer Weekly, essentially taking the position that companies often panic in times of crisis and make irrational decisions not grounded in thorough analysis. “Companies risk reducing future business opportunities when they cut IT budgets in times of economic slowdown, according to Harvard Management, which manages the assets of Harvard University” (Flinders, 2009). Recessions end, economies recover, and businesses once again have the opportunity to thrive. Œe short-sighted slash and burn approach might make sense in the near-term, but falls apart when companies look
improve the long-term health of the ‚rm; they assume the smart way to grow is always cautiously and incrementally; and they focus on broadening their customer base” (Flinders, 2009).
