The budget crisis in the U.S. is about being forced to live with broad budget cuts. A Gartner analyst says CIOs know about the dangers of cutting the wrong way

What CIOs know about sequestration

 

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There’s a hot word in the news today: Sequestration.

In its normal meaning it relates to the separation of things – like a jury being sequestered before reaching a verdict.

In the U.S. it’s also a term used in federal legislation to describe automatic budget cuts that have to take place if a deal wasn’t struck by midnight Feb. 28.

But as Gartner analyst Mark McDonald writes, CIOs also know about sequestration in having to handle broad budget cuts.

Just as Republicans and Democrats negotiate on how to cut spending, CIOs and CFOs have been having similar talks for the past few years.

It’s true, the analogy may not be exact:  The U.S. is mired in huge debt with its political leader decision-makers more worried about pleasing voters by delivering spending in their districts – there’s never waste at home — and raising money for re-election than in the long-term health of the federal government.

But McDonald points out there’s a way in which the analogy is right: Trying to do more with less leads to a false sense that keeping cutting is sustainable. At some point, he argues, politicians have to learn what CIOs know.

Read his column here

 

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