Fiscal cliff threatens IT departments

By VAR_Staffing
In Channel
December 11, 2012

VAR_Staffing / VAR Staffing

Anyone that keeps an ear out for politics is familiar with the term "fiscal cliff." It has been making headlines across the country and been a major topic on social media sites. President Barack Obama is currently hitting the road to talk about the issue and his plans to rectify the problem.

The cliff refers to January 2, 2013, when a perfect storm of tax increases and government spending cuts take effect. These range from the removal of certain tax provisions for small businesses to a reduction in federal programs. Many analysts fear this could lead to another recession.

Many companies are concerned of what the future looks like and IT departments in particular could be in trouble. With more companies investing heavily into technology solutions as a way to increase productivity and profitability, many businesses may find themselves in need of reducing their IT footprint.

Lamar Whitman, the director of public advocacy for CompTIA, was interviewed by CIO about what impact the fiscal cliff could have on IT departments in just a few weeks. According to Whitman, Sequestration – the government budget cuts – are going to have the biggest impact.

"When we get to January 2 and the sequestration does occur, clearly [the] government will have to be reassessing some of its technology needs and contracts at that time," Whitman said. "We're just going to be put in a holding pattern to wait and see."

Whitman went on to say that the IT skills gap could increase because of the reductions to federal education and training funds. This will make it even more difficult for businesses to find the proper resources they require.

IT Principals need to be ready as the fiscal cliff could have wide sweeping ramifications for IT departments. VARs and MSPs can become reliable resources when companies find themselves with their back against the wall.

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