This seems typical of many managerial decisions that are based solely on cost systems that do not accurately or appropriately allocate costs to products or services. IT being largely an in house service or cost center to other profit centers can be targeted for cost savings since it typically generates nothing but costs on the books at the benefit of the other departments. I may be jumbling the terms here but the premise is stated.
In this particular case the 15% reduction makes me immediately think they are focusing on costs alone without regard to the proper managerial accounting principles. Of course I could be wrong. Furthermore, when you see this focused cost cutting at such a large scale it usually points to inefficiencies in both management and accounting.
Slashdot Mirror
Exactly.
This is a worthless story. My post is more newsworthy than the story!
This seems typical of many managerial decisions that are based solely on cost systems that do not accurately or appropriately allocate costs to products or services. IT being largely an in house service or cost center to other profit centers can be targeted for cost savings since it typically generates nothing but costs on the books at the benefit of the other departments. I may be jumbling the terms here but the premise is stated. In this particular case the 15% reduction makes me immediately think they are focusing on costs alone without regard to the proper managerial accounting principles. Of course I could be wrong. Furthermore, when you see this focused cost cutting at such a large scale it usually points to inefficiencies in both management and accounting.
This is the last straw....