Cost Reduction Targets: One Means to Different Ends


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In the first quarter of 2009, Info-Tech surveyed IT decision makers about their cost reduction priorities and targets. Interestingly, the size of targets and the relative time granted to achieve them have little influence on the order and depth of cost-reduction priorities. Instead, the prevailing strategy for most enterprises seems to be “Do the easy things first and hope we don't have to do the difficult things later.”

Size of Targets

Nearly 70% of respondents are planning IT budget cuts of 10% or less. When targets are small, challenging areas can be side-stepped in favor of quick wins. However, larger targets compel enterprises to move beyond the low-hanging fruit.

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