As the recession deepens, every business is thinking of new ways to cut costs and the IT department’s role is becoming more and more important in this process. A large proportion of annual expenditure goes on ‘maintenance’, but sometimes a more efficient use of internal resources can help reduce this financial drain. It’s time we became a bit more self-sufficient. I’m not suggesting we panic and go back to the ‘make do and mend’ mentality, but sometimes it’s possible to be a bit smarter about how we use what we’ve got.

Modern businesses are entirely reliant on functioning IT equipment, and a fair amount goes out on hardware maintenance contracts. However, rather than pay out for maintenance year after year, it is often significantly cheaper to purchase and hold spare routers, switches and servers, and utilise technically competent in-house staff to swap hardware.  For items which you choose to keep on maintenance this year, a contracts database can be a useful tool to remind you of pending renewals three months in advance, so that every year you have time to reconsider, before automatic renewals kick in.

Careful management of software and communications contracts can also result in significant cost savings. Renting software packages rather than purchasing outright can help create a healthier cash flow and reduce the need for large one-off payments, and companies can also realise cash flow benefits from using software-as-a-service applications.

Additionally, as laptop and mobile technology continues to advance rapidly, remote working is becoming an increasingly attractive option. As the communications industry becomes ever more competitive we should be able to negotiate better contracts every year, with less money for more bandwidth to make this even more viable. To continue to get the best deal, a two-year contract should really be the maximum, preferably with a review against the market built in halfway through.  Costs can also be saved in land-line and mobile phone communications, but the IT department should be responsible for both sides. This avoids any conflict of strategy between land-line and mobile use, and also increases opportunities for the take-up of voice over IP and its inherent cost savings.

Most IT departments will be adopting these or similar, maybe better strategies already.  Perhaps it’s now time for some evangelising to the rest of the business about taking a hard look at recurring expenditure, and ways to cut it down to size without reducing service levels. By clearly aligning its strategies with the financial focus of the business at this time, the IT department can demonstrate that it does understand what’s going on, and can make a positive contribution to the situation.

With business and IT still speaking two different languages it looks like the barriers between the two aren’t going to come down unless someone takes the first step and learns to bridge the gap. 

IT’s lack of business and communication skills is stalling business change projects, according to a CIO Connect survey, which found that 64 per cent of IT managers had to change the people in charge of projects to ensure success.

But I think the problem is not just about simple ‘lack of skills’. We all tend to retreat back to our comfort zones and clearly defined responsibilities in times of stress - and what project isn’t a source of that?

For IT people, the comfort zone is around methodologies, the technicalities of set-up, the coding, the flowcharts of predicted business flows and transactions. For business people, it’s the interaction with customers, with suppliers, with regulators and with reporting systems, with what they want IT to do for them. 

So in whose comfort zone is change management, conflict resolution, the painstaking reiteration of changing processes to those affected, the detailed analysis of cause and effect, and the focus on motivation and self interest? What project last allocated a third of its budget to the time and travel needed to construct and institutionalise the new processes which are essential if the system is to be a success?   

If these are no-one’s clear responsibility and comfort zone, then they‘ll be the first to get dropped when deadlines lurch closer and stress levels grow.

To deal with this stress-induced polarization, some CIOs are going down a joint venture route - working with outsourcing specialists to gain access to change management, communication skills and other resources they don’t have in-house.  But for IT to take a lead in business programmes and significantly raise its profile within the business, it needs to provide in-depth change management, commercial, leadership and communication skills, in addition to more traditional IT project management abilities. 

CIOs can start the process by consciously putting IT staff into project roles which will stretch them out of their comfort zone and into these terrifying areas.  And not surprisingly, once they’ve been there for a while and overcome some major setbacks, that becomes their new comfort zone.

Green issues are certainly climbing the IT agenda. We’ve recently witnessed a real call for businesses to overhaul their IT systems radically and install eco-friendly technology, especially as power costs escalate.

Moreover, legislation such as the Waste Electrical and Electronic Equipment (WEEE) Directive and the RoHS Directive are putting added pressure on organisations to become more green, from both a financial and ethical point of view.

The IT department has a real responsibility towards the environment. According to The Carbon Trust, office equipment now accounts for around 15% of total energy in the UK and this figure is likely to double by 2020. Leaving personal computers, lights, printers and other office equipment switched on wastes an estimated £150 million worth of electricity in English offices every year.

The introduction of green taxes will push IT directors to take steps to minimise the effect on the IT budget, but the IT function can also have a wider perspective and influence on behaviour. IT, for instance, has created the opportunity for flexible working which can significantly reduced the number of people travelling into work each day. IT can provide the vision (and the practicalities) for global businesses to use videoconferencing and file sharing for network meetings, cutting back on international travel.

IT can keep nudging the business to use email and EDI, not printed, posted and delivered paperwork. Some businesses already include the environmental impact and recycling potential of product in their purchasing decisions. IT can take a lead here too, ensuring that the kit they buy will not contribute to a future mountain of electrical waste.

Businesses shouldn’t forget that there is one thing for certain - green IT is no longer an option, it’s a necessity.

While the industry has seen a significant shift in recent years with regards to CIOs and IT directors taking on a more strategic role within the business, a recent article in Computing highlights a real dilemma which most IT departments grapple with on a daily basis – the communication and cultural gap that still lingers between CIOs and their team.

It’s certainly true that expecting one person to bear the entire burden of strategically aligning IT projects to the business needs is unrealistic. But practically, if the CIO doesn’t take the lead in tackling the problem, then who will?

The onus is really on CIOs to instil a different mindset into his or her team which empowers IT staff to uncover and take the needs of the business into consideration at every stage of an IT project.

CIOs must help IT staff to understand the bigger picture and give them the training, coaching and confidence which they need to engage with executives and employees outside the IT department. Examples are financial training and presentation skills. It's important that staff are included in the non-technical aspects of project implementation, like budgeting, scheduling, change management and project communications.

Being able to understand key drivers for different departments and individuals and speaking the same language is critical for IT staff. Team building exercises can be an invaluable way to get IT staff thinking with their business hats on. Business games can be great for this. Get an IT team to be responsible for the P&L for a company for two days and throw them some of the curved balls which happen in daily business life, and they'll soon begin to develop more empathy with the business, and to understand that a non-IT paradigm is just as valid as a technical one.