Companies warned over excessive IT staff cuts

Few companies are looking for ways to replace the roles and duties of lost staff

An IT consultancy firm is encouraging companies to look into alternatives before making cuts which it says will hamper later recovery.

UK firm Affiniti, which specialises in IT and communications management and consultation, said that its own research had shown that firms were looking to cut IT staff without putting plans in place for expansion or recovery.

The company noted that, while many enterprises are cutting IT staff, few are looking for ways to replace the roles and duties of the lost staff, or considering how future recovery could affect those departments.

Affiniti's research found that 75 per cent of companies were looking to cut overall IT costs, but fewer than 10 per cent were considering alternatives, such as cutting operating costs or moving to managed services.

The result could be an epidemic of companies which are unable adequately to manage IT when the economy begins to recover.

"IT departments must look for alternative cost saving strategies to headcount reduction, which ultimately distracts attention from the most important issues, " said Affiniti executive director Paul Renucci.

"Without focusing on impacting revenues and increasing customer satisfaction, IT departments risk missing out on a once-in-a-generation opportunity to get away from being seen just as a cost centre."

The recession has brought challenges for many firms regarding IT management, which has seen its importance grow in recent years.

Analysts have predicted that IT spending will drop by some three per cent this year, and the increased stress and worries about job security is affecting the performance and morale of even those who avoid the axe.