How IT infrastructure is being affected by the current economic climate

The current economical climate has provided some unique challenges for us as IT&T consultants, as well as for our clients. Contrary to what some may think, these challenges do not relate to a lack of work. These challenges are very subtle and can best be summarised as:

• Executive and board interest in IT projects;
• Emphasis on ensuring budgets are correct and appropriate; and
• Expectation that contractors can provide a higher level of service than in the past.

Let’s analyse each of these challenges separately.

Executive and board interest in IT projects

Our experience shows that IT managers are losing their delegation to undertake necessary works. Executives and, in some cases, board members need to be informed of IT projects to a level that they can make decisions regarding their feasibility. This is not just occurring at the commencement of a project, but often during the project life cycle as well.
This challenge is not about whether these people are the right decision makers. They are, but the way projects are undertaken and the processes used are different now, which changes the project landscape from the way it used to be. Here are some examples:

1. In the past, as consultants, we mostly communicated with our direct client. However, with the current level of executive interest in IT projects, we have been providing weekly updates to our clients on the facts that their executives are interested in. In some instances, we hold regular meetings with the executives to report directly to them.
2. Project justification of budgets is not just required at the commencement of a project (which was common practice in the past), but can continually be asked for during a project. We have found that we need to know clients' justifications at the commencement of works and ensure we inform clients at the earliest possible time if the justifications cannot be met.
3. Reports and other client documents are no longer just about the technical details. We are finding that our reports are now being read several levels above the staff we produced the documents for. We now need to understand what information these executives require and ensure it is in our documentation.

Emphasis on ensuring that budgets are correct and appropriate

Clients seem to be spending a lot of time reviewing their budgets (capital and operational). In some cases, monthly budget reviews are taking place. In any work we are undertaking for clients, we find that regular updates are required on budget, cash flow and expenditure. We are also finding that the required return on investment (ROI) is being lowered, in some instances down to one to two years.

Expectation that contractors can provide a higher level of service than in the past

Without intending to offend members of the contracting community, the simple fact is that the industry is having trouble delivering what clients want. The following characterises what we are seeing in the industry currently:

• Clients expect that many different systems can be integrated together;
• Clients have high expectations that contractors and consultants understand the operational requirements of what the project is to deliver, not just the technical issues to complete it; and
• Clients don’t want hype, but sometimes believe that the hype can actually be delivered.

For all projects in this new economic climate, we now need to undertake an extensive consultative process at the commencement of a project. This is to enable us to understand the full requirements and expectations of the client and to ensure that the client understands the ease (or lack thereof) on how their expectations can be delivered. In most cases, the client is not just one person, but a range of people from Operations to Management. Some of the effective means we have employed to deliver on expectations is the use of workshops and Requirements Reports as part of the process to enable staff members at all levels to agree on project deliverables.

*Andrew Drever, Principal, Charnwood Communications.