CIOs Want 'True Partners' During Tough Times

One would think that in tough economic times, IT vendors would be doing everything possible to stay close to their best customers. But to hear CIOs tell it, that's far from the case.

"I think the vendors have gotten lazy and inefficient in how they sell to me," said Dawn Dillon, CIO at the Salem Five Cent Savings Bank, one of three CIOs on a panel Sunday at this week's Midsize Enterprise Summit in Miami, Fla. The conference is owned by Everything Channel, the parent company of Channelweb.com.

Dillon was responding to a question from the audience about how IT executives have been served by IT vendors and solution providers during the recession. "My vendor partners have gotten worse," she said, explaining that they have been calling her repeatedly using telemarketing, rather than spending time with her to understand her needs. "These vendors out there just aren't doing themselves justice."

Ed Eskew, vice president and CIO at womens' apparel maker Bernard Chaus Inc., applauded some of his long-time solution providers. "They have really stepped up to the plate," he said, noting that some IT providers have extended payment deadlines and provided capital financing. "They've felt my pain And I won't soon forget that."

But Eskew couldn't say the same for some of his IT vendors. When his company experienced financial difficulties, some vendors he has done business with for years wouldn't cut him any slack, such as flexibility in paying bills. "When I'm down and out and I'm in the foxhole, I want to see you there. That's when you become a true partner."

One attendee, during the Q&A session, said he called his IT providers together and asked what they could do to help out during these tough economic times. He said they have reduced their hourly service rates and what they charge for IT equipment, supplies and maintenance up to 30 percent, saving his company several thousand dollars. "I think this is something that all of you can do," he said.

Earl Bunting, director of ITS for the city of Jacksonville, N.C., has been deluged by IT vendors who think state and local governments still have money. He said some even think they have a windfall from the massive $787 billion stimulus package. "Well, we ain't got it yet," he said.

The focus of the panel session, moderated by Gartner Research Director Kurt Potter, was how IT executives are weathering the economic downturn. While the panelists have experienced a fair amount of cost-cutting pain, they said the recession has also brought more long-term changes, some for the better.

Eskew noted that while some information technology such as virtualization can help businesses reduce IT costs, the up-front price tag is too much for many mid-size companies like his. "This certainly isn't the time for us senior IT executives to walk into the chief operating officer's office and say, 'I have a great idea, I need a couple of hundred grand.'"

On the plus side, the executives described how their organizations have more closely aligned their IT plans with business goals and strategies. Eskew said in the last 10 to 12 months his department has helped cut more than $2 million in expenses out of Bernard Chaus' business process expenses.

Dillon said closer scrutiny from top executives has presented her with the opportunity to show the value her department can provide the company. "We have a great opportunity in this economy because of the flight to quality," she said.

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