Now is the time to focus on your operations and cut, cut, cut as you face the deepening recession. A new survey of 548 executives by the consulting company, McKinsey & Co., found that 42 percent of businesses say the priority for IT in the next budget cycle is to cut costs. Less than one third of the executives--27 percent--said that IT's priority should be on creating new products and services.

"Now is the time to focus on how you're operating and getting rid of inefficiencies," says Sina Moatamed, chief technology officer of BendPak Inc., which sells lifts and hoists to auto-repair shops. His top priority right now is reducing BendPak's inventory levels.

"It's also a good time to take a look at what needs to be changed in house," said Jim Farley, director of the data services group for Wyndham Hotels and Resorts LLC. "It may not be the most exciting project, but it will make the company more efficient...The recession is going to end," he says. "And when it ends we want to be ready."

For more on facing the recession:
- check out this WSJ.com blog

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