Information technology’s critical role in corporate downsizing

There are two types of interrelated downsizing; human resource downsizing, which refers to reduction in personnel, and computer downsizing, or the migration from a mainframe to distributive processing platforms. The corporate strategies underlying each vary, but technology is generally involved at some level. Top executives and corporate planners must be aware of the personnel, budget, training, outsourcing, obsolescence, and standardization issues involved in downsizing. This article will explore various applications of information technology contributing to both types of downsizing, the benefits achieved and the problems encountered.