Should IT be run like a business?

There's no limit to what IT can do, as every CIO knows. But there is also an unfair burden being placed on IT departments these days, to save money that lives outside of their sphere of influence. That might work as long as IT is completely embedded in a company. But IT cannot be the go-to place when business managers are looking to cut costs, especially when this kind of thinking hurts IT's capabilities.

A recent report by AMR Research indicates that IT departments want to spend 9.3 percent more in 2008 to improve their own performance, while companies are planning to increase IT spending by only 5 percent. As any CIO knows, money talks and putting the money into resources pays off tremendously.

Companies have been investing less for the long-term benefits of IT lately and many are redesigning the way their IT departments purchase new technology. And there is considerable pressure to run an IT department as a business, so that it doesn't take a big bite out of the overall budget. Yet cost-cutting in the IT sphere can often be shortsighted with regard to the long-term health of the business, making internal operations less efficient and hurting external customer needs. In the end, greater IT investments may mean greater productivity, better functioning systems and eventually, more cost savings and higher profits.-Judi