When it comes to IT staffing, companies that view the current economic environment as an opportunity to refocus on business drivers and stretch the organization’s capacity for innovation will be better positioned for the economic upturn.

1. Managing IT Staffing in a Difficult Economy
Organizations that survive and end up thriving through a downturn resist the temptation
to take only defensive measures. They develop aggressive offensive strategies as well.
Successful businesses strike a balance between cost containment and capitalizing on new
opportunities that present themselves. They are innovative and find new ways to provide
value to customers. In addition, they take advantage of the greater availability of talented
IT professionals in the job market. Smart organizations remain flexible and astute in
order to react decisively to the changing landscape.
A proactive approach to managing your IT staffing is a good offensive strategy. Begin by
renewing IT’s relationship to the business side of the organization. Closely examine
where IT is legitimately adding value and how IT initiatives are helping the organization
achieve competitive advantages. Scrutinize every aspect of your department
(infrastructure, legacy systems, databases and application development) and then
reprioritize your initiatives, keeping in mind the key business drivers the organization
will be using in its decision making process.
Next, foster innovation. Research conducted by the consulting firm Accenture shows that
a company’s ability to view the tools and resources they already had from an innovative
perspective was key to success through the last downturn. In fact, the ability to innovate
in a way that strengthened a company’s strategic position was second only to a healthy
financial position prior to recession in determining whether the company would come out
ahead.
Opportunities to innovate abound in a downturn. Maximizing your existing IT assets and
finding new uses for resources already in place has historically paid off for organizations
willing to think outside the box and take decisive action in a timely manner. These
innovations can be seemingly simple concepts. According to Jean-Phillipe, president of
Microsoft International, companies can reduce the number of servers by running more
applications per server. Another cost-savings innovation is the implementation of
employee mobility strategies that help to reduce travel expenses, as well as increase
flexibility in talent recruitment and retention. Advanced Internet applications commonly
known as Web 2.0, provide a variety of avenues for creative problem solving and
innovation.
Calculated investments in new IT systems and projects also can boost a company’s
ability to succeed in a tight economy. The Accenture research found that successful
companies invested in new information systems that provided insight into value drivers.
According to a recent Forbes article, “As the economic cycle inevitably shifts upward,
companies who have dropped the innovation ball will find their fortunes sagging just as
the economy surges.” Finally, it is time to assess your people. Many organizations
currently are in a holding pattern when it comes to their IT talent.
The InSource Group, an IT staffing agency, conducted an informal survey of companies
in the Dallas area regarding their hiring plans. The majority of respondents indicated they

2. were not planning on major changes to their IT staffing and most hiring plans were
conservative. These responses were not unexpected and in all probability these
organizations are waiting on further economic data to make decisions before making bold
decisions. While this is predictable, businesses can put too much weight on economic
data. Remember such data reflects what has already happened and smart managers look
ahead; not in the rear view mirror. Thoughtful, educated projections are required for
employing smart resource management strategies.
A down economy is an excellent time for a cost effective talent upgrade because more IT
professionals are available. It is also a good time for outsourcing contracts. Managing
budgets and timelines of outsourced projects can be easier than containing the head
count, costs and timelines of in house projects.
In a difficult economy, the reality is that companies may feel the need to reduce their IT
staffing. However, it is not productive for an organization to cut or freeze hiring across
the board without a thorough and comprehensive review of its talent position by position.
The complexities to be considered include preserving subject matter expertise that is
critical to your organization and ensuring that the poorest performers are targeted, rather
than simply the talent working on redundant initiatives.
Cost containment is important, but must be done with business drivers in mind.
Ultimately, those companies that view the current economic environment as an
opportunity to refocus on business drivers and stretch the organization’s capacity for
innovation will weather the storm and inevitably be better positioned for the economic
upturn.
About The InSource Group
The InSource Group is a software-product development, technical consulting and IT
staffing and recruitment company that provides a complete spectrum of flexible solutions
for IT staffing needs, including contract, contract-to-hire and direct hire options. More
information on IT staffing and IT jobs in Dallas, Tx can be found at
http://www.insourcegroup.com/