CIO's restructuring to survive

The pressures on CIO's are becoming more and more intense.
This is no more obvious than in the big 'nationalised' banks where CIO's who have traditionally had immense investment budgets will have to change their whole modus operandi to a more 'maintain the status quo' approach. However this is not just restricted to banks, many CIO's who csi10 speak to on a regular basis are having to adopt a more 'business as usual', reduce cost approach and forego their hereto fore substantial investment budgets.
Thus, CIO's are finding that to accomodate this new set of drivers they are having to change the department structures and talent mix to ensure they can deliver.
Whilst the CIO will have to fight hard to manitain his place at the executive table, his direct reports should be looking to how they will be affected and make (very significant) changes to their targets, their teams, their expectations........
So where will the new emphasis be?
We have seen the following significant changes already percolating through IT departments:-

Investment / Programmes Dept: Reducing number and seniority of PM's to accommodate smaller, faster ROI projects.
Risk / Compliance Dept: Increasing the number of experienced personnel to adequately deliver and communicate to the organisation.
Support Dept: Looking for ways to cut the cost and increase service levels; investigating or reviewing outsourcing.
Infrastructure: Maximise return on assets, review possible and existing outsource contracts
Education: Maximise use of online / self-help education, reduce permanent headcount

The balance has changed and the CIO faces a dilemma; how do you retain the talent to ensure continued service and take advantage when the downturn reverses, whilst reducing costs and delivering to the new targets.
What significant organisational changes have you in mind?
What is your experience; how have you managed this?