UK TMT: Staying smart in a downturn - UK.COM

10UK TMT: Staying smart in a downturnThis sense of having taken action already isreflected in the fact that most of the companiesplanning to take one-time reactive measures inresponse to the downturn have already done so.The numbers of respondents whose companiesplan to cut budgets or restructure are lowcompared with the numbers of those who haveeither already initiated such changes or who saythey don’t plan to. Of the seven reactive measureslisted, most companies have only taken two: 46%have reviewed their contracts or suppliers, and55% have implemented a staff restructuring. Othermoves are far less common – only 10% have soldassets or plan to do so, while cutbacks in R&D andnew outsourcing strategies are also rare. Clearlycompanies aren’t thinking in terms of short-termfixes – R&D in particular will be an especiallyimportant activity in which to invest if companiesare relying on innovation to see them through thetough economic times. (See chart 8.)> Chart 8 – Downturn strategies 2009Have takenPlan to takeDon’t plan to takeStaff restructuring55% 17%28%Review of contracts/suppliers46% 33%22%Cutbacks in marketing35% 17%48%Outsourcing/offshoring23% 17%60%Office relocation22% 22%56%Cutbacks in R&DAssets sale13% 7%80%5% 5%90%0% 10% 20% 30% 40% 50% 60% 70%80% 90% 100%April 2009© 2009 CFO PUBLISHING CORP.