Cost-Cutting Tactics: One Size Fits All


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In many ways, IT practice differs according to number of employees, size of IT staff, enterprise revenue, and size of IT budget. Not when it comes to cutting costs. In fact, IT departments react largely the same way regardless of their size.

This research note examines the variation between different sized IT departments in relation to cost reduction activities. Issues covered include:

•    Enterprise employee counts as predictors of cost management focus.
•    Revenue and budget numbers as predictors of cost management behavior.
•    Recommendations for response i.e. following the crowd or heading off in another direction.

While peer benchmarks are helpful, understanding who a peer really is should be the first step when conducting an analysis. When it comes to cost reduction however, an enterprise’s relative size doesn’t seem to matter much at all.

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