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Marimar Jiménez - Madrid Company chief information officers (known as CIOs) must remain alert to the challenges that may arise from the euro crisis and be prepared to take action in the current climate of economic decline. “Uniquely positioned in their enterprises, CIOs are at the fulcrum of business and technology and they are the only executives with sufficient visibility and potential capability to address the challenges posed by today's Eurozone crisis,” Gartner Vice-president David Furlonger explained yesterday in a press release.

Furlonger spoke out in favour of the need for CIOs to take action to protect their companies from the risks of bank or government default, the break-up of the euro and distress in the markets and among their own employees. Gartner also indicated that IT managers have an opportunity to demonstrate the importance and true value of IT and meet the demands and requirements of CEOs.

Gartner stated that IT managers have a great deal of responsibility for ensuring business continuity because the crisis is affecting all businesses trading in the euro zone. The consultancy firm also emphasized a number of challenges that need to  be addressed.

One is market volatility: Gartner stated that current conditions in Europe will require CIOs to provide their companies with tools that promote speed, agility and adaptability without sacrificing accountability.

çAnother challenge is capital costs: the consultancy firm stated that access to finance in Europe will continue downhill and IT managers will have to face zero-growth budgeting and substantial reductions in investment capital and operational budgets. On such a scenario, Furlonger went on to say that CIOs and other executives will need to develop contingency plans to ensure multiple backups.

Focus on risk management and jobs

The consultancy firm Gartner highlighted another two challenges for CIOs. The first involves management of human capital. Top IT managers will have to offer human resources departments solutions at a time when salaries are being reduced across the economy. IT managers need to find ways of motivating employees and ensuring the availability of funds to hire new talent. According to Furlonger, the ultimate goal is to improve productivity. Gartner stated that CIOs must have a plan for retaining foreign workers by offering them the best opportunities and ensuring work permits for non-EU citizens.

Lastly, IT managers will have to provide solutions for increasingly complex risk management that includes regulatory issues and the “substantial” danger of default in government and business.