Business...it's so cyclical. We go through lush years when the primary focus is just "getting things done" and we grow fat, then we hit a slow down and we suddenly have to watch our dollars and the primary focus becomes "get it done...but don't spend any money" and we are forced on a diet.
Unfortunately, in the directive to cut costs - we don't always do it in the best fashion. There are costs you can cut in your IT budget without impacting service - they never should have been there in the first place...they came from lack of time and desire for convenience.
Where to look:
1) Software licensing agreements and maintenance plans
2) Telecommunications costs
3) Outsourcing agreements
If you don't have the talent in-house to do this, hire it out.
A reputable consultant will be able to tell you after a quick look if there is money to be saved - so you should know without incurring costs (or possibly very minimal costs) to what magnitude your savings opportunities are - they should full justify the cost of the consultant plus significant savings to your organization.
Additionally - there is money on the table when you are signing or renewing a deal. Make sure you're working with an expert who knows how to get you the most from your negotiations.
Don't wait until your budget is due to start this process...get a jump start and get it done now - you know budget time is always a crunch...