CIOs Should Have Plan in Place to Tackle a Second Economic Downturn
In 2008, most chief information officers (CIOs) were forgiven for being unprepared to deal with the global recession, but if another recession unfolds in the next 12 to 18 months, no CIO will be forgiven for being unprepared a second time, according to information technology research and advisory company Gartner Inc.
In May, investor doubts about the health of the global economy returned to the world's capital markets with a vengeance, Gartner stated in a press release. "The possibility of nations defaulting on repaying massive loans, high unemployment rates, depressed housing prices, limited access to consumer and business credit, a growing belief that a sustained economic recovery may not be possible this year, and an array of other factors have all combined to shake investor confidence to its core," the release stated. "Because so much uncertainty exists about the sustainability of the current recovery, CIOs should confront such uncertainty with clear and decisive action. They should augment current near-term plans by preparing for a second recession."
"Just the potential for a second business downturn should be sufficient to compel CIOs to plan for another business downturn," says Ken McGee, vice president and Gartner fellow. "However, most CIOs will not have a response strategy prepared if a second business downturn occurs."
"As questions, or even doubts, grow about the ability for economies to recover, CIOs in 2010 have one advantage over their predecessors," McGee continues, noting that many CIOs today possess extremely recent and practical experience dealing with a recession. "In light of this fact, we strongly urge these recession-hardened CIOs to leverage their recently acquired and economic battle-scarred experiences by proactively preparing their entire enterprises should another economic downturn occur within the next 12 to 18 months."
Gartner recommends that CIOs take the following key actions to ensure that their enterprises are best placed to weather any potential financial storms over the next 12 to 18 months: