IT Budget

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IT 기술이 기업의 핵심 역량으로 평가 받는 이 시대에서, IT Budet의 중요성을 간략 요약 보고서입니다.

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1. Introduction
As our nation is experiencing financial difficulties comparable to the Great Depression in the 1930s, business leaders must proactively plan and implement a strategy that best alleviates the financial pressures that the majority of businesses face. Since the information technology (IT) that a business possesses is a crucial component to the success of its operations, the IT budget must be on the priority list of top management.
1.1
Since budget cuts are directly proportional to the downturn of the economy, many have experienced lay-offs, hiring freezes, project standstills, and a more conservative approach to managing cash flows. In an article by Kim Nash, 40% of CIOs plan on reducing their IT budgets, while 34% plan to remain with their previous budget (Nash 2008). Also according to this article, outside consultants are among the first to be cut from IT budgets. A good example of such actions taken by companies to reduce IT costs is Lowe Enterprises (LE), a real estate development firm. The CIO of LE, Rick Belmonte, has delayed all new technology expansion projects until 2010; he also dropped LE’s outside consultants and 20% of his full-time IT staff (Nash 2008). Although it seems like an extreme case for LE to halt its new technology projects until 2010, it appears that conserving cash flows during this economic recession is the main concern for entities to survive.

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IT budget.docx
IT budget.pptx