Show Me the Money: The Use of Financial Metrics in Your Contracts

by Sara Cullen

The current economic downturn has cut a deep gash in the economies of virtually every country and industry, affecting people's lives in ways not seen in over 50 years. There is no doubt that we are now firmly on the scarcity side of the abundance/scarcity continuum, so the question is, where do we go from here? For many, cost cutting is now the order of the day. Others may see opportunity. In the last economic downturn, as their competitors slashed investments, companies such as Intel and IBM famously invested in R&D, thereby generating record profits in technologies like Wi-Fi once the economy recovered. Will organizations try to cost-cut their way out of this crisis, or can they find ways to invest through the downturn? How will IT managers make tough decisions in light of the economic conditions their companies face?

What they need is reliable information with which to navigate these turbulent waters. In this issue of Cutter IT Journal, we explore metrics that can help IT managers make sound decisions in hard times. If your cost-cutting efforts include offshoring, you'll discover financial measures to help ensure your sourcing contracts deliver not only lower costs but project success. Hear how you can demonstrate the value enterprise architecture offers both to initial projects and later initiatives, enabling your organization to "make it through the current problems and be ready to compete when times improve again." If, as Cutter Fellow Tom DeMarco famously said, "you can't control what you can't measure," join us to regain a measure of control.