cost management

IT Failures have been getting a lot of press recently:

A large health insurance company was reportedly banned by regulators from selling certain types of insurance policies in January of 2009 due to ongoing computer system problems that resulted in denial of coverage for needed medications and mistaken overcharging or cancelation of benefits. The regulatory agency was quoted as stating that the problems were posing "a serious threat to the health and safety" of beneficiaries.

Lessons learned in times of stress can apply even when times are good.  Successfully managing the IT function is a challenge even in the best of circumstances. But when your company has fallen on hard times and revenue and profits are falling, how should the IT function be managed then?