IT Capital Research Articles

Responding to Earnings-Related Pressure to Reduce IT Operating and Capital Expenditures

The success or failure of a company's earnings performance is often responsible for radical changes in the structure and destiny of the company. When faced with mounting pressure to increase earnings, upper management frequently responds with a massive cost-cutting campaign. These campaigns often lead to a reduction of the resources allocated to the IT function or to the initiation of efforts to outsource all or part of IT functions. This article explains how to analyze and combat these pressures.