Information Technology:<BR>Like Their Customers, I.T. Vendors Scale BackInformation Technology:<BR>Like Their Customers, I.T. Vendors Scale Back

EMC has centralized its IT staff to save money under a project it calls IT transformation and portfolio management. Previously, each business department had its own development staff, potentially leading to redundant efforts or other inefficiencies. "We had a completely decentralized organization that was on a shopping spree," Palmer says. "We've pulled everyone back to IT under the CIO." EMC cut IT staff by about 20% this year, and Palmer says having all IT workers under one roof makes it easier to deploy them where they're most needed. "Otherwise, the reduction would've been much more painful," he says.

Other tech vendors are investing in technology that will help lower costs and increase efficiency. Reseller Compucom Systems Inc. recently completed a portal through which customers can access product and services information. Comark Inc., also a reseller, has made investments in customer-relationship management, business-to-business, and E-commerce systems, even though its revenue last year was flat. "Despite budget cutbacks, we've managed to keep high-profile projects going," says Comark CFO Rick Goddard, noting that the investments are paying off with new efficiencies.

As many of these examples show, "important projects" and "improved efficiency" are never far apart when tech vendors talk about their IT priorities.