Outsourcing deals being re-evaluated in weak economy

IT outsourcing remains steady at most large companies, but the weak dollar and service issues are causing some CIOs to reconsider their decisions. And that's not all -- loss of flexibility and control can also be factors.

In a tough economic environment, flexibility definitely becomes more important. Executing change orders, modifying manufacturing orders or altering marketing pitches delivered during telephone contacts are all more difficult when the work is outsourced. "You don't have the luxury of saying, 'Come on team, let's go!'" explained David Rutchik, managing partner at Pace Harmon, a Washington, D.C., consultancy that specializes in outsourcing issues.

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IT Management Slideshow: Top CIO Priorities for 2009

As expected, cost-cutting goals have expanded, but it’s not the whole ballgame in 2009. Here’s what more than 220 IT executives listed as their top priorities in business, management and technology priorities.

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Adjusting your budget in a volatile economy

CIO Jeff Rowley hashed over his 2009 IT budget with his business partners more than he ever has before. In his case, the business is the hurting state of Ohio, facing a 2009 budget deficit of between $733 million to more than $1 billion. Rowley is CIO of the state's Department of Natural Resources, overseeing an annual IT budget that hovers around $9 million.

His charge is to support his department's initiatives more efficiently and spend less doing it. Ohio's departments have already taken two across-the-board cost cuts, Rowley said, but budget talks have taken a different turn from past years.

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