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CIO's having to "trim their budgets" are the lucky few. Budgets of many are slashed, hacked, sliced and diced; often by forces outside their control. The magnitude and repetitive nature of the cuts begs for new solutions. The thinking "We'll come back to full strength staffing and funding" should largely be abandoned. The shift to a centralized IT structure and use of managed solutions can bring a measure of sanity. In some quarters, contracted services enjoy greater immunity to budget cuts due to the nature of the contract and bundling of solutions. In house staffing is an easy target, with personnel costs a large component of any budget. Service levels fall by cutting staff in some areas, but reduction of staff in other areas may reduce service levels to the point of irresponsibility. Consideration must be given as to whether certain critical operational areas would be best immunized from the dreaded budget ax through judicious use of contracted services.