Five reasons why a recession is good for the tech industry

Joe McKendrick put out another great post about why it's time to get bullish on SOA, IT and the economy. He points out a lot of good reasons with the most notable one being the role that IT plays in boosting productivity.

While ignoring the current economic headlines isn't easy, dwelling on them certainly isn't productive either. Though it's sometimes hard to resist.

Let me ask this... how many of you out there have already swapped all of their 'remember when' recession horror stories from early 90's or the early part of this decade? I'm guessing at least one or two of you have even recounted what it was like waiting to buy gas in the 1970s on the even numbered days of the calendar.

And while I can also play a good round of 'remember when' that goes back three decades with as many highs as there were lows, the one thing I have learned is that recession presents the opportunity to innovate ourselves out of a downturn.

Here's five reasons why a recession is not always bad for the IT industry.

1. Boosts productivity. I urge you to read Joe's latest post on this one.

2. Spurs innovation. It's times like these that we are reminded of the scores of millionaires that emerged from the great depression.

3. It forces us to focus on the projects that most immediately impact the financial health of the organization.

4. Entrepreneurs can start businesses with lower start up costs. They can pick up deeply discounted equipment from poorly managed companies that are going out of business and take advantage of the latest tech innovations such as cloud computing that can help defray some IT costs. In fact, William Hurley makes some very interesting points about cloud computing affecting venture capitalism. You can find them here.

5. It breaks down some of the hierarchical barriers in the organization as leaner teams are asked to execute various tasks -- some that the higher ups may not have performed in years --for the greater good.

As we've seen in the past, technology has helped us emerge from recessions. Rob Weisman at The Boston Globe writes that technology may fuel economic recovery and that 'entrepreneurs will likely emerge in fields like cell phones, medical gear, and the batteries that power the cars of the future.'

And while it's easy to get distracted by the noise, let's remember to not get caught up in the let's remember dialog. In the words of the boss of all bosses, Tony Soprano, "Remember when is the lowest form of conversation." So as we hunker down, let's keep an eye out for the opportunities this recession may present.

If you've got other silver linings you'd like to share about possible upsides to this recession, please send them my way.

Jeff