INFORMATION and communications technology (ICT) has become an integral element for many organisations to boost operational efficiency and stay competitive. That’s why a significant portion of their budget allocation goes to ICT every year. But the current economic slowdown is forcing many organisations to rethink their ICT plans.

Malaysian National Computer Confederation’s president Datuk Dr Raja Malik believes that technology spending should not be abandoned all together, as this will risk a company’s ability to compete or provide better services.

“What is crucial is to cut down on unnecessary ICT spending,” he said, referring to lack of monitoring and planning on ICT that has led to wastage in ICT implementations.

Raja Malik suggests that companies approach cost-cutting measures by way of focusing more on ICT governance and implementing ICT strategic planning.

With good ICT governance, companies will be able to ensure return on investment on ICT spending while at the same time enhance business performance. Furthermore, there will be better regulatory and monitoring mechanisms through such tools as key performance indicators, risk management, project management and quality assurance.

And with better ICT strategic planning, this will lead to more focus on crucial and competitive systems and solutions as well as use of appropriate technology, Raja Malik pointed out.

He also said companies can look at information architecture and data storage to rein in rising ICT costs.

For smaller companies, Raja Malik believes that being prudent in their ICT spending is the best policy. Functionality, rather than fashion and trends, should be top priority.