The determinants of the critical success factors of information systems downsizing

Competitive advantage in the information age is based, in large part, on a firm's capability to acquire and use quality information as well as effective and efficient services, with its information technology resources at the least possible cost. One possible strategy for improving the cost-performance ratio of information technology resources is known as downsizing. The downsizing effort is a strategic move that is believed by many organizations to be capable of yielding significant benefits. It can also be a costly endeavour which may leave a firm worse off. Therefore, careful planning and control must be exercised if information systems downsizing is to succeed. This paper reports the results of a study whose purpose is to identify and explain the critical success factors for a downsizing effort. Results of the study show that information systems downsizing may produce benefits such as improved information systems, improved organizational structure, higher productivity, and lower cost. The results also indicate that downsizing success is dependent upon complex linkages of communications, action plans, needs for downsizing as perceived by employees, and the specific method of downsizing used.