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COVID-19 Budget and Cost Management Center

Manage your IT budgets and costs by leveraging our extensive portfolio of research-driven blueprints, templates, and tools.

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Welcome to the COVID-19 Budget and Cost Management Center.

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Info-Tech has developed an approach that's based on understanding your current position in the business economic cycle, establishing a corresponding response mode and identifying key budget and cost management goals. These inputs will enable you to target initiatives within and across four focus areas and access relevant blueprints tools and templates to achieve the budget and cost management goals you have set out and to develop an action plan to achieve them.

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Cost Optimization Mandate

Steps

Cost Optimization
Mandate

Outcome

  • Budget optimization requirements
  • Review of peer IT CapEx and OpEx benchmarks
  • Projected evolution of IT service demand
Cost Optimization Objectives

Cost Optimization
Objectives

  • Budget impact scenarios
  • Guiding principles for cost optimization
Long list of optimization options

Long List of
Optimization Options

  • List of possible cost management actions and enablers
Key Initiatives and Cost Effect

Key Initiatives and
Cost Effect

  • Key initiative descriptions and cost impact
Cost Optimization Objectives

Cost Optimization
Action Plan

  • One-year cost management action plan

Analyst-Driven
COVID-19
IT Budget Strategy

Identify Business Cycle Position

Identify your organization’s position in the business cycle. There are a multitude of variables that may impact your choice. For example, it may be that you are tracking against an overall economic market slowdown, or you may be tracking against an industry sector expansion due to accessing new markets.

Determine Mode of Response

Based on your position in the business cycle, identify the appropriate response mode:

Reactive (<3 months)
Identify the most effective and least disruptive cost-cutting measures in response to changing economic conditions.

Proactive (3-12 months)
Enable the organization to respond appropriately to different types and magnitudes of a slowdown in a planned manner.

Strategic (>12 months)
Establish budget and cost management efficiency and agility across all stages of the business cycle, ensuring that the IT strategy is sustainable regardless of changing economic conditions.

Define Budget & Cost Mgmt. Goals

Identify organizational goals for budget and cost management. Your goals will relate directly to several factors such as:

  • The business cycle position and corresponding response mode
  • Current budget cycle and budget constraints
  • Business strategy and IT strategy
  • View of IT by the business: Are you a Cost Center? Service Provider? Strategic Partner?

Business
Cycle and
Corresponding
Response Mode

Chart

45 Customizable Strategies & Tools to Meet Cost & Budget Goals

Determine initiatives based on mode of response.

Reactive Examples

You have been informed of a 10% budget cut and must decide on cost-cutting options:

  • Reducing headcount
  • Optimizing applications
  • Scaling back on vendor engagements
  • Reducing project overhead by cutting projects
Proactive Examples

A slowdown has reduced revenues and you need to reduce proposed budget by 15%.

You have time to plan how to reduce your budget for next year:

  • Identify skills and knowledge gaps that contribute to higher operating costs and plan to rectify through cross-training exercises
  • Identify redundant assets based on usage reports; plan for reduction in assets
  • Identify vendor contracts that can be renegotiated or are coming up for renewal and plan for cost-cutting negotiations with those vendors
  • Identify the highest priority projects and target those that can be delayed or postponed without impacting the business
Strategic Examples

The business has identified cost optimization as a major strategic initiative for IT service delivery.

  • Establish project portfolio management capabilities that ensure only high-value projects are approved and delivered
  • Develop a sourcing strategy that encompasses shadow IT to optimize assets as well as optimize vendor management opportunities
  • Establish an AI strategy to leverage RPA capabilities, enabling either headcount reduction or redeployment of human assets to more value-added workloads

Focus Area Activities

Work with our analyst team to build a customized strategy to meet your budget goals while preserving core capabilities and strategic priorities.

Map selected activities to Info-Tech content using the below chart.

  11
Workforce
Optimization
Strategies
12
Asset
Optimization
Strategies
10
Vendor
Management
Strategies
10
Project
Prioritization
Strategies
Reactive
  • Determine optimal staffing levels
  • Identify core/critical training program elements
  • Determine expendable staff-related ancillary costs
  • Reduce software license costs
  • Asset consolidation
  • Delay upgrades and refreshes for applications and hardware
  • Renegotiate current contracts
  • Cancel current contracts
  • Renegotiate/Suspend/Cancel pending contracts
  • Resize/Rescope existing projects
  • Postpone/Cancel existing projects
  • Delay/Cancel new projects

TOOLS AND RESOURCES

TOOLS AND RESOURCES

TOOLS AND RESOURCES

TOOLS AND RESOURCES

Cost-Cutting Planning Tool
  1. Application Maintenance Resource Capacity Assessment
  2. Service Desk Continual Improvement Roadmap
  3. Redeployment Decision Tool
  1. SaaS TCO Calculator
  2. Reduce Costs Through Printer Consolidation
  1. MSA Contract Review Tool
  2. Contract Review Tool
  1. Project Intake and Prioritization Tool
  2. Zero-Allocation Project Management Workbook
Proactive
  • Determine current staff skill and capability levels
  • Prioritize associated workloads by business value
  • Determine workforce deployment against prioritized workloads
  • Optimize capacity utilization
  • Extend asset maintenance schedules vs purchase new equipment
  • Move services to cloud (SaaS)
  • Assess existing vendor contracts for performance
  • Renegotiate existing terms
  • Evaluate switch to lower cost vendors
  • Develop criteria for project intake
  • Prioritize projects in portfolio based on business value
  • Develop criteria for project approvals

TOOLS AND RESOURCES

  1. Redeploy IT Staff to Fill Changing Demands
  2. Lean Service Desk Integration Plan
  3. Increase Support of Tier 2 and Tier 3
  4. Develop IT Staff Capabilities
  5. Transfer IT Knowledge Before It’s Gone

TOOLS AND RESOURCES

  1. Optimize Applications Cost Management
  2. Vendor Landscape: IT Asset Management (ITAM)
  3. Pave the Road to Unified Endpoint Management
  4. Reimagine IT Operations for a Cloud-First World
  5. Outsourcing Systems Management Decision Workbook

TOOLS AND RESOURCES

  1. Vendor Risk Profile and Assessment Tool
  2. Implement a Proactive and Consistent Vendor Selection Process
  3. Understand Common IT Contract Provisions to Negotiate More Effectively
  4. Outsource the Service Desk
  5. Outsource IT Infrastructure to Improve System Availability, Reliability, and Recovery
  6. Negotiate SaaS Agreements That Are Built to Last

TOOLS AND RESOURCES

  1. Optimize Project Intake, Approval, and Prioritization
  2. Project Management Process Costing Tool
  3. Free Up Funds for New Initiatives
  4. Manage a Minimum-Viable PMO
Strategic
  • Develop a workforce strategy to optimize staffing capabilities aligned with business value
  • Adopt a Lean approach to managing workloads and workforce capacity
  • Identify automation opportunities to augment workforce capacity
  • Develop a sourcing strategy
  • Build an application rationalization framework
  • Establish a comprehensive ITAM practice
  • Establish a VMO
  • Align VM strategy with sourcing strategy
  • Implement smart contracts
  • Establish a PPM practice
  • Establish a PMO
  • Establish demand and resource management capabilities

TOOLS AND RESOURCES

TOOLS AND RESOURCES

TOOLS AND RESOURCES

TOOLS AND RESOURCES

Build an IT Budget That Demonstrates Value Delivery – Phases 1-3
  1. Build a Strategic Workforce Plan
  2. Improve Employee Engagement to Drive IT Performance
  3. Redesign Your IT Organizational Structure
  1. Develop and Manage Your Infrastructure and Operations Budget
  2. Consolidate IT Asset Management
  3. Build a Rationalization Framework
  4. Create an IT Sourcing Strategy
  5. Build an End-User Computing Strategy
  1. Establish a Sustainable Vendor Management Office
  2. Capture and Market the ROI of Your VMO
  1. Develop a Project Portfolio Management Strategy
  2. Maintain an Organized Portfolio
  3. Establish an Effective PMO for IT
  4. Balance Supply and Demand with Realistic Resource Management Practices
11
Workforce
Optimization
Strategies
Reactive
  • Determine optimal staffing levels
  • Identify core/critical training program elements
  • Determine expendable staff-related ancillary costs

TOOLS AND RESOURCES

    Cost-Cutting Planning Tool
  1. Application Maintenance Resource Capacity Assessment
  2. Service Desk Continual Improvement Roadmap
  3. Redeployment Decision Tool
Proactive
  • Determine current staff skill and capability levels
  • Prioritize associated workloads by business value
  • Determine workforce deployment against prioritized workloads

TOOLS AND RESOURCES

  1. Redeploy IT Staff to Fill Changing Demands
  2. Lean Service Desk Integration Plan
  3. Increase Support of Tier 2 and Tier 3
  4. Develop IT Staff Capabilities
  5. Transfer IT Knowledge Before It’s Gone
Strategic
  • Develop a workforce strategy to optimize staffing capabilities aligned with business value
  • Adopt a Lean approach to managing workloads and workforce capacity
  • Identify automation opportunities to augment workforce capacity

TOOLS AND RESOURCES

    Build an IT Budget That Demonstrates Value Delivery – Phases 1-3
  1. Build a Strategic Workforce Plan
  2. Improve Employee Engagement to Drive IT Performance
  3. Redesign Your IT Organizational Structure
12
Asset
Optimization
Strategies
Reactive
  • Reduce software license costs
  • Asset consolidation
  • Delay upgrades and refreshes for applications and hardware

TOOLS AND RESOURCES

    Cost-Cutting Planning Tool
  1. SaaS TCO Calculator
  2. Reduce Costs Through Printer Consolidation
Proactive
  • Optimize capacity utilization
  • Extend asset maintenance schedules vs purchase new equipment
  • Move services to cloud (SaaS)

TOOLS AND RESOURCES

  1. Optimize Applications Cost Management
  2. Vendor Landscape: IT Asset Management (ITAM)
  3. Pave the Road to Unified Endpoint Management
  4. Reimagine IT Operations for a Cloud-First World
  5. Outsourcing Systems Management Decision Workbook
Strategic
  • Develop a sourcing strategy
  • Build an application rationalization framework
  • Establish a comprehensive ITAM practice

TOOLS AND RESOURCES

    Build an IT Budget That Demonstrates Value Delivery – Phases 1-3
  1. Develop and Manage Your Infrastructure and Operations Budget
  2. Consolidate IT Asset Management
  3. Build a Rationalization Framework
  4. Create an IT Sourcing Strategy
  5. Build an End-User Computing Strategy
10
Vendor
Management
Strategies
Reactive
  • Renegotiate current contracts
  • Cancel current contracts
  • Renegotiate/Suspend/Cancel pending contracts

TOOLS AND RESOURCES

    Cost-Cutting Planning Tool
  1. MSA Contract Review Tool
  2. Contract Review Tool
Proactive
  • Assess existing vendor contracts for performance
  • Renegotiate existing terms
  • Evaluate switch to lower cost vendors

TOOLS AND RESOURCES

  1. Vendor Risk Profile and Assessment Tool
  2. Implement a Proactive and Consistent Vendor Selection Process
  3. Understand Common IT Contract Provisions to Negotiate More Effectively
  4. Outsource the Service Desk
  5. Outsource IT Infrastructure to Improve System Availability, Reliability, and Recovery
  6. Negotiate SaaS Agreements That Are Built to Last
Strategic
  • Establish a VMO
  • Align VM strategy with sourcing strategy
  • Implement smart contracts

TOOLS AND RESOURCES

    Build an IT Budget That Demonstrates Value Delivery – Phases 1-3
  1. Establish a Sustainable Vendor Management Office
  2. Capture and Market the ROI of Your VMO
10
Project
Prioritization
Strategies
Reactive
  • Resize/Rescope existing projects
  • Postpone/Cancel existing projects
  • Delay/Cancel new projects

TOOLS AND RESOURCES

    Cost-Cutting Planning Tool
  1. Project Intake and Prioritization Tool
  2. Zero-Allocation Project Management Workbook
Proactive
  • Develop criteria for project intake
  • Prioritize projects in portfolio based on business value
  • Develop criteria for project approvals

TOOLS AND RESOURCES

  1. Optimize Project Intake, Approval, and Prioritization
  2. Project Management Process Costing Tool
  3. Free Up Funds for New Initiatives
  4. Manage a Minimum-Viable PMO
Strategic
  • Establish a PPM practice
  • Establish a PMO
  • Establish demand and resource management capabilities

TOOLS AND RESOURCES

    Build an IT Budget That Demonstrates Value Delivery – Phases 1-3
  1. Develop a Project Portfolio Management Strategy
  2. Maintain an Organized Portfolio
  3. Establish an Effective PMO for IT
  4. Balance Supply and Demand with Realistic Resource Management Practices

Boardroom-Ready Communication Templates & Strategies for the Pandemic

Arrows

Prioritize the initiatives

Align the activities and related content in step 2 to the budget and cost management goals determined in step 1.

Prioritize the initiatives based on this alignment.

List

Develop an action plan

Leverage existing templates and tools in the Info-Tech content to create an action plan to achieve budget and cost management goals.

Waves

Build a communication plan

Create a communication plan to inform key stakeholders of progress in the planned initiatives.

Communication should include:

  • Answers to “what’s in it for me” questions from all impacted stakeholders
  • Roles and responsibilities before, during, and after the initiatives are completed
  • Key dates, deliverables, impacts, and descriptions of specific changes being made
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