The best place to cut IT organizations is generally at the top.
...one of the great problems in IT management is that the big bosses typically haven't a clue what is happening, what is needed to happen, and what it all should cost. There is a role for trust here, but if the Big Guy is signing off on a budget he can't even read, much less understand, well something is wrong. Some IT departments like this, of course, just like my students liked it when class had to be cancelled (they liked getting LESS for their money), but in tough times, facing reality and speaking the truth is usually the best course.
If your boss doesn't understand your job enough to describe it in technical detail, that boss is in the wrong job.
If you are managing an IT shop and can't write the code to render "hello world" in C, html, php, and pull "hello world" from a MySQL database using a perl script, then YOU are in the wrong job.
I should point out that these latter tasks can be copied and pasted straight from properly composed Google queries. They aren't a test of programming knowledge at all, just of the ability to use the Internet. Yet many technical managers will fail and should get the boot as a result. You can't manage what you can't understand.
... What's really needed, after all? That knowledge is in your organization, though often not where it is available to the decision makers. The essence of efficiency is doing only the parts that are absolutely needed and almost every shop has at least one project that everyone except the big boss knows is either pointless or hopeless.
This could be a good time to embrace open source tools. Yes, there is a learning curve, but the price is right and I can argue that open source quality is substantially better.
(in toto)
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