When a shortfall of IT resources is identified, the FIRST course of action is to;

Performing a Business Impact Analysis (BIA) is the initial action because it quantifies the potential effects of a resource shortfall on critical business functions, allowing the organization to understand the severity of the problem and prioritize which resources are most vital to address first. This ensures that the response is proportionate and focused on the most critical areas.

Reallocating the budget is a potential solution, but it should only be done after understanding the impact and criticality of the shortfall via a BIA to ensure resources are moved to the most critical areas.

Reducing business requirements is a drastic measure and should only be considered after understanding the impact and exploring other solutions, as determined by a BIA.

Negotiating pricing for contracted resources is a tactical step to address a known need, but the *first* step is to understand the impact of the shortfall before determining the best solution or even if external resources are the right fit.