"Draconian" IT Spending Cuts Putting Business at Risk, Analysts Warn

Among its advice to chief information officers for how to address these issues, META advised CIOs entering the budget battle this year to take a "categorized spending strategy," for example, by clearly delineating which projects are core, non-discretionary, discretionary, investment and "venture spending."

In addition, the analysts recommended emphasizing the enterprise's "vulnerabilities and risks to business performance" from further cost-cutting. "The most popular method to accomplish this task includes the use of risk management as a discipline to portray various levels of risk and cost to resolve/address the risk," said Boyle. "An impact discussion with the business is necessary to have rational discussions on what should be spent and where. This discussion will help users develop a deeper appreciation for the value of IT."