Two (contrasting) faces of the enterprise IT swoon

04.12.2008
There are that corporate IT spending will shrink next year.

So to see what's going on in the real world, Computerworld interviewed two enterprise IT buyers who gave very different expectations on how much they will be tightening their belts in 2009. One is a Louisiana company that runs hospital emergency rooms whose CIO must slash his IT budget. The other is a German engineering services firm for the auto industry whose managing director envisions no downturn-related cutbacks, despite the problems with his predominantly Detroit-based clientele.

Health care provider tries to make cutbacks less painful

When three years ago, he was given carte blanche to upgrade or replace every enterprise system used by the 14-year-old, 750-employee Lafayette, La. firm, which provides staffing and management services for hospital emergency rooms.

Times have changed. As reports of the U.S. economy spiraling downward increased, Menefee was told by corporate higher-ups several months ago that he would likely have to slash his 2009 IT budget in half.

After fierce negotiation, they reached a compromise.