Given the scenario, 40 percent of CIOs are taking action, he said. They are taking the following steps:
- Consolidating suppliers
- Increasing credit lines
- Leasing instead of buying
- Outsourcing non-core business functions
Clearly, the message from this for the CIO is that the ability to invest (in new equipment/technology) will be impacted. Besides this, CFOs are looking to increase cash reserves and cut down expenses. Isernhagen said that 75 percent of CFOs plan to adjust the budget downwards.
To everyone's relief, Isernhagen said his research showed that even though retrenchment is on the cards, the IT department is safe.
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