How well do you think you would cope with an overnight cut of 30 per cent in your IT budget?
That’s the reality facing British Airways (BA), as Computing revealed this week, and a stark reminder of the difficulties facing IT leaders in the companies most affected by the recession.
Banks and other financial services firms will no doubt have suffered similar or even greater cutbacks, but BA is the first blue-chip firm to be open about the dramatic effect the slump is having on its technology plans.
IT professionals across the UK are being disproportionately hit by the downturn. According to research by the Keep Britain Working campaign, 30 per cent of UK IT staff have had to accept pay cuts – above the national average of 27 per cent of employees.
And with a further 5,700 jobs to go at HP’s European operations, there is bound to be further strife for UK workers.
For all the optimistic talk of green shoots from some quarters, there is little hard evidence among the IT community that the prolonged economic woes are coming to an end.
There may be a small rise in house prices; share prices may be up – but the effects of the downturn will be felt in IT for some time yet. Trade unions point out that unemployment rarely peaks until some time after a recession has ended – which is a sobering thought for those who have survived so far.
But for enterprising IT leaders, the worst of times can be the opportunity to shine. As Deepak Singh, acting chief information officer at HM Revenue & Customs, says: “Out of the current crisis will be born the next generation of IT leaders,”.
The challenges that IT managers face are unprecedented, but even if you cannot see any green shoots, it is a time to nurture roots and sow seeds.
As Computing has said many times, the organisations that make the best use of IT will be the ones that survive now and thrive in future. It is tough out there, but IT must take the lead.
