The status of information systems department: the effects of downsizing

Abstract

In today’s volatile economy, organizations are constantly exploring avenues to remain competitive. Information systems (IS) downsizing is one of the strategies used by many organizations in continued efforts for survival. There are considerable risks and rewards to the various units within the firm including the IS department associated with downsizing strategy. Empirical studies that evaluate the impact of the process on the IS department are needed to help organizations better manage their information technologies and systems. This study investigates the real impacts of IS downsizing on the IS department as perceived by IS managers of those companies whose IS had been downsized. With a pre‐tested survey instrument, the study compares 12 critical characteristics of 98 IS departments before and after the downsizing process. The gains and drawbacks of IS downsizing are also analysed based on key indicators that are emphasized in the literature. The results indicate that IS downsizing has definite benefits and drawbacks. The findings also show that the net gains on some of the key indicators are not as significant as the IS downsizing proponents may claim.

Citation

Udo, G.J. (1998), "The status of information systems department: the effects of downsizing", Industrial Management & Data Systems, Vol. 98 No. 1, pp. 23-32. https://doi.org/10.1108/02635579810199672