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Different enterprises set different cost reduction targets and time frames based on their economic environment. Typically, small cost-reduction targets allow enterprises to address the relatively pain-free cuts while ignoring the more challenging and tumultuous tactics. This can be a mistake.

This research note explores the effect that different IT budget reduction goals have on the IT service areas targeted for cuts. Coverage includes:

  • The impact of the IT budget amount that must be slashed.
  • The differences between those with tight time frames versus longer-term cost reduction goals.
  • The influence of multiple staged targets compared with those enterprises facing a single cost-cutting target.
  • Recommendations for prioritizing actions based on both known and currently unforeseen cost reduction mandates.

Many enterprises find themselves undergoing a series of cost cuts that tally up over time into a significant budgetary reduction. Think long-term and consider the more difficult options to avoid being taken by surprise.

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Search Code: 9708
Published: July 8, 2009
Last Revised: July 8, 2009


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