In this economic climate there are few businesses that won't be adversely affected in some way or other, at least in the short run. The natural reaction of most companies is to immediately look for ways to cut costs. There is nothing wrong with this, in fact you would be crazy to not look into ways to scale back your expenses, but it's not the whole solution. The companies that will emerge from the recession the strongest are those that realize that within recession also lies opportunity: the opportunity to receive services at more compelling rates and to sign on previously out of budget talent.
Because of these opportunities, a recession is actually not a bad time to reevaluate all your systems and processes and look into investing in the future. In fact, if you are concerned for your business it may be very advantageous to act quickly in order to get a leg up on the competition and increase your appeal. If you can't afford to invest too much, take inventory of your existing infrastructure to determine new processes that are relatively cheap to implement and have the potential to yield high returns. If you are unsure as to how to proceed, contact a professional software consulting firm to assist you in making strategic recommendations. Be open about wanting to make a deal with them. In this climate, it's not unusual for people to be more open to negotiatiate. Firms with shops overseas may be particularly willing to negotiate projects and hourly rates.
You should also remember that this is an excellent time to look for new talent. For example, if you know a local company is making layoffs, contact its HR department. You may be able to work with the company or its outplacement agency to identify workers who be interested in joining your company or working for you on a contract basis. There are a lot of excellent people out of work, and the most important investment you can make is in your team.
One last word of warning: even if your IT budget is dwindling, make sure that you continue to invest in the necessary security features. It is better to consolidate some of your existing operations or focus on increasing security automation to get more output from fewer people. The last thing you want to be dealing with during a recession is a cyber attack that will disrupt your business operations.
Remember, a recession is not just about cutting costs, it's about creating new value with those resources you have.