Organizations are constantly exploring avenues to remain competitive i
n today's volatile economy. Information systems (IS) downsizing may be
a key success factor for many firms with respect to future survival.
There are considerable risks and reward associated with downsizing str
ategy. Empirical studies that evaluate the impact of the process on th
e IS department is needed to help organizations better manage their in
formation technologies and systems. This study investigates the real i
mpacts of IS downsizing on the IS department as perceived by IS manage
rs of those companies whose IS division had been downsized. The result
s indicate that IS downsizing implementation may lead to significant b
enefits and drawbacks to IS department.