IT budget tips: Strategies to beat the budget crunch

November 3, 2008, 02:21 PM —  CIO.com — 

CIOs face a monumental dilemma as they find themselves caught between tough economic conditions, competitive pressures and mounting compliance demands.

The mantra of the day? Contain costs while continuing to drive productivity. This is a tall order for CIOs who have slashed their 2009 IT budgets and feel the pinch from runaway compliance costs.

As new regulations continue to grow in number and complexity, never ending compliance projects divert precious staff time and operating budget away from growth supporting initiatives to reactive activities such as regulatory audits.

And the future doesn't look any brighter. With the crumbling of Wall Street, we can expect the burden of compliance to grow exponentially as the government responds to current risk management inadequacies with an onslaught of new rules and regulations.

As demands to control the bottom line increase and regulators become even more aggressive, over-investing in compliance-related programs can negatively impact a company's ability to fund future growth initiatives.

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