How IS Organizations Can Survive Cost Cuts

The cuts now have to be translated into IS cost cuts, but they are rationally decided and focus on areas that will have least marginal value to the client. What was a random cutting exercise is one that now reflects the best economic interest of the enterprise. Again, IS has not been placed in the lonely position of deciding which costs to cut.

Bottom Line: IS organizations that are aware of the relationship between costs and service levels can draw on this knowledge to fit their particular situation. A strategic approach to cost cuts will dramatically alter what it means for IS and will provide a rational method for dealing with the inevitable ups and downs of the business cycle.

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