CXO

Survey results: Projects, not people, take brunt of budget cuts

Some IT pros may be exempt from the layoffs that are greeting employees at many businesses in the first quarter of 2001. On the other hand, projects are getting the ax. See what your peers had to say in our survey on budgets.


At a time when many companies are laying off workers in response to slower than expected growth in the first quarter of 2001, TechRepublic members who took our survey indicate that their companies are more likely to cut projects before cutting staff to meet budget demands.

  Doing More with Less
    Do you need creative solutions for stretching your IT dollars and making wise purchasing decisions? Check out our collection of articles for advice on outsourcing, planning projects, working with vendors, and increasing efficiency.  
       

    Do you need creative solutions for stretching your IT dollars and making wise purchasing decisions? Check out our collection of articles for advice on outsourcing, planning projects, working with vendors, and increasing efficiency.  
       

The results from two survey questions indicate that respondents are trying to maintain the quality of staff members, even as some positions are put on hold.
  • When asked how many open positions in your IT departments you would delay filling, a majority of respondents said that fewer than 25 percent of their open positions would be put on hold.
  • About two-thirds of respondents also said they would not attempt to fill open positions with less-qualified people in order to save money.

Slightly more than a third of those taking the poll do not expect to outsource projects they would do in-house if they had enough personnel. Of the respondents, 10 percent said they would be outsourcing more than half of the work they would normally complete in-house. (see Figure A).

Figure A


Budgets are under scrutiny
There is nothing like a slowing economy to make budgeting more work. About 84 percent of all respondents think the budgeting process was more arduous this year. (see Figure B).

Most people taking the survey said their budgets were more difficult to get approved and that they are being asked to find ways to save.

Figure B


Projects are getting the ax
Current and future budget cuts are aimed at the project side of the budget, according to those who took the survey.

A large percentage reported that 26 percent or more of the projects originally approved in their budgets would be cut. Some will be cutting half or more of their planned projects. (see Figure C)

Figure C

Are you facing grave decisions on the budget front? Do you think your supervisors are being too paranoid about the state of the economy? Share your thoughts on the matter in a discussion below or send us a note.

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