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IT Cost Optimization Research Center

Optimize your IT spending by leveraging our extensive portfolio of research-driven services, blueprints, templates, and tools.IT Spend & Staffing Benchmarking Service

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Welcome to the IT Cost Optimization Research Center.

Begin by downloading our complimentary essential guide

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

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Cost Analysis & Optimization Workshop

Obtain a tailored strategy to meet your cost-optimization goals.

Completion of the IT Spend & Staffing Benchmarking Service is required in advance of this workshop to map your IT spending and generate your industry-specific benchmarks.

IT Cost Optimization Mandate

Steps

IT Cost Optimization
Mandate

Outcome

  • Understand the organization's context
  • Articulate the cost optimization mandate
  • Clarify IT's position and response mode
Cost Optimization Objectives

Cost Optimization
Goals

  • Review your actual IT spending
  • Examine peer IT spend benchmarks
  • Identify cost-optimization focus areas
  • Set concrete IT cost optimization goals
Long list of optimization options

IT Cost Optimization Initiatives Longlist

  • Identify potential initiatives for vendor contracts and assets
  • Identify potential initiatives for projects and workforce
  • Develop an initiatives longlist for evaluation
Key Initiatives and Cost Effect

IT Cost Optimization Roadmap

  • Assess initiative feasibility against goals
  • Generate a prioritized final shortlist of initiatives that enables goal achievement
  • Develop a visual IT cost optimization roadmap
IT Cost Optimization Objectives

Communicate & Execute

  • Develop a communication strategy for engaging stakeholders
  • Create an executive presentation to gain IT cost optimization roadmap approval

Be sure to leverage these other Info-Tech services and resources:

IT Spend & Staffing Benchmarking Service

Let us map your IT spend to our four-lens IT cost model and show you how you compare to your industry peers.

Cost Optimization Analysis Concierge Service

A looming recession meets a global pandemic. The result? CFOs start asking IT to cut costs, now.

IT Vendor Contract & IT Cost Optimization Service

Negotiate your next contract with the confidence that Info-Tech experts are getting you a great deal.

Info-Tech LIVE 2022 Keynote: Survive & Thrive During a Recession

Doing what you've always done won't get the same results anymore.

Analyst-Driven IT Cost Optimization Process

Identify Your Organization's Position

Identify your organization's position in the economic cycle. There are a multitude of variables that may impact your current state. 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 organization's position in the economic cycle, identify the appropriate response mode:

Reactive
Identify quick-to-execute measures with few dependencies and concrete impact in response to business urgency and/or executive directive.

Proactive
Enable the organization to respond to different types and magnitudes of business change in a more planned and controlled manner.

Strategic
Establish an efficient, agile, sustainable, and strategically aligned cost-optimization practice across all stages of the business cycle, regardless of business conditions.

Establish IT Cost Optimization Objectives

Identify your organization's IT cost optimization goals. IT's goals will relate directly to several factors such as:

  • The organization's position in the economic cycle and IT's corresponding response mode
  • Position in the current budget cycle and other constraints
  • The organization's strategy
  • Role of IT in the organization: supporter, enabler, or partner

Economic Cycle and Corresponding Response Mode

IT Cost Optimization Services & Resources

Determine initiatives based on mode of response.

Reactive Examples

You have been informed of a 10% budget cut and must make an effective IT spending decision:

  • Reduce headcount
  • Optimize applications
  • Scale back on vendor engagements
  • Reduce 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 optimize your organization's IT costs while preserving core capabilities and strategic priorities.

  Workforce
Optimization
Asset
Optimization
Vendor
Management
Project
Prioritization
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

Cost-Cutting Planning Tool
  1. Application Maintenance Resource Capacity Assessment
  2. Redeployment Decision Tool
  3. IT Staffing Requirement and Allocation Assessment
  4. Critical Role Identifier 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. Develop IT Staff Capabilities
  3. Mitigate Key IT Employee Knowledge Loss
  4. Streamline Application Maintenance
  1. Optimize Applications Cost Management
  2. Outsourcing Systems Management Decision Workbook
  1. Understand Common IT Contract Provisions to Negotiate More Effectively
  2. Outsource IT Infrastructure to Improve System Availability, Reliability, and Recovery
  3. Negotiate SaaS Agreements That Are Built to Last
  4. Slash Spending by Optimizing Your Software Maintenance and Support
  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

  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. Reimagine IT Operations for a Cloud-First World
  1. Establish a Sustainable Vendor Management Office
  2. Capture and Market the ROI of Your VMO
  1. Develop a Project Portfolio Management Strategy
  2. Establish an Effective PMO for IT
  3. Establish Realistic IT 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
Asset
Optimization
Reactive
  • Reduce software license costs
  • Asset consolidation
  • Delay upgrades and refreshes for applications and hardware

TOOLS AND RESOURCES

    Cost-Cutting PlanningTool
  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. Outsourcing Systems Management Decision Workbook
Strategic
  • Develop a sourcing strategy
  • Build an application rationalization framework
  • Establish a comprehensive ITAM practice
  • Reimagine IT Operations for a Cloud-First World

TOOLS AND RESOURCES

  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
Vendor
Management
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
Project
Prioritization
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

  1. Develop a Project Portfolio Management Strategy
  2. Maintain an Organized Portfolio
  3. Establish an Effective PMO for IT
  4. Establish Realistic IT Resource Management Practices

Boardroom-Ready Communication Tools & Templates

Prioritize the initiatives

Align the activities in step 2 to the cost-optimization goals determined in step 1. Prioritize the initiatives based on this alignment.

Develop an action plan

Leverage Info-Tech templates and tools to create a highly visual cost-optimization roadmap that lays out your proposed cost-optimization goals.

Build a communication plan

Create a communication plan and executive presentation to inform approvers and key stakeholders about your cost-optimization plan, gain their support, and report on execution progress.

Communication should include:

  • An answer to the question “what's in it for me” for all impacted stakeholders
  • Key dates, deliverables, impacts, and descriptions of specific changes being made
  • Clear statement of roles and responsibilities throughout the initiative-execution lifecycle
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