A recent informal survey offers some insight.

ICOM member agencies from around the world are watching their expenses carefully while investing to grow. According to an informal survey of members last month, the biggest area for investment is technology, everything from systems and software to operate more efficiently to resources that allow agencies to expand their digital offerings to clients,

As for where agencies are trimming, most are finding ways to become more efficient by carefully aligning their staffing and people resource needs with their business requirements.

In What Areas, if any, Is Your Agency Investing More Heavily?
Technology/new media/digital
To make internal operations more efficient
In-house production capabilities
Training modules
Web analytics and other new services to clients
Adding digital experts on staff and as consultants

Other
Various new business activities
Talent from different disciplines
Recruiting and training team leaders able to handle integration
Training and professional development
Senior strategists -- changing the emphasis to involve senior strategists longer into the creative process, selling more ideas to clients on the basis of strategic thinking, before spending on creative development
Insight in and deeper knowledge of consumer
Long-time, loyal clients and best employees
Planning/research

In What Areas, if any, Is Your Agency Cutting Back?
Areas related to personnel/people
Compensating with performance-based bonuses rather than salary increases
Using more freelancers and outsourcing
Not replacing people leaving the agency
Making sure every employee has a full plate and is highly productive

Other
Agency does not take on work that may not be profitable
Cutting office space and related expenses
Cutting client entertaining, travel, conferences, workshops