Consolidate Service Management to Drive IT Cost Optimization
Embrace a big picture approach to move beyond cost reduction.
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Last Revised: August 26, 2012
- The Great Recession put IT leaders in a mode of frenzied cost cutting. As the recovery dragged along, IT budgets flattened and have recently increased only slowly.
- IT leaders need to optimize costs and maintain competitiveness while preserving the organization’s ability to capitalize on a potential market upswing.
- Having exhausted many of the conventional cost reduction tactics over the past several years, IT leaders have few options left for continued cost improvement.
- User classification opens the door to service tiering through identification of the real opportunities for service differentiation in the organization. It establishes a reasonable basis for multiple service tiers that goes beyond simply providing better service to the most vocal users.
- Spikes in demand for different IT services do not normally occur at the same time. Share resources across services to reduce the capacity you need to allocate up-front.
- Opening up resource purchase decisions to competitive bidding will not always bring you the strongest vendor options. Try to build multi-service vendor relationships with vendors who can cater to your user classes.
Impact and Result
- Reduce costs while maintaining the ability to compete.
- Plan to optimize not just your current level of expenditure but also expenditures foreseeable down the road.
Get to Action
Build a strategy for optimizing IT costs
Reduce expenses while aligning services to user needs.
Learn about cost optimization
Build a plan for cost optimization.
Survey your user base for usage characteristics
Drive user classification.
Classify your user base
Derive appropriate tiers for user services.
Plan capacity across user classes and services
Reduce the amount of resource you purchase.
Identify opportunities for multi-vendor relationships
Build relationships with vendors that can support your user classes.
Prioritize your cost optimization efforts
Start with the low-hanging cost optimization fruit.
Related Solution Sets
Companies Who Helped
- Milwaukee Health Department
- Saskatoon Health Region
- WR Starkey Mortgage
- An additional ten companies contributed to this research. Due to the sensitivity of the information, their identities will be kept confidential.