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Cost-Reduction Planning for IT Vendors

IT-Vendor Cost-Reduction Planning

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  • Unprecedented health and economic conditions are putting extreme pressure and controls on expense management.
  • IT needs to implement proactive measures to reduce costs with immediate results.
  • IT must sustain these reductions beyond the near term since no one knows how long the current conditions will last.

Our Advice

Critical Insight

  • Proactively initiating a “War on Waste” (WoW) to reduce the expenses and costs in areas that do not impact operational capabilities of IT is an easy way to reduce IT expenditures.
  • This is accomplished by following the principle “Stop Doing Stupid Stuff” (SDSS), which many organizations deemphasize or overlook during times of growth and prosperity.
  • Initiating a WoW and SDSS program with passion, creativity, and urgency will deliver short-term cost reductions.

Impact and Result

  • Pinpoint and implement tactical countermeasures and savings opportunities to reduce costs immediately (Reactive: <3 months).
  • Identify and deploy proven practices to capture and sustain expense reduction throughout the mid-term (Proactive: 3-12months).
  • Create a long-term strategy to improve flexibility, make changes more swiftly, and quickly generate cost-cutting opportunities (Strategic: >12 months).
  • Use Info-Tech’s 4 R’s Framework (Required, Removed, Rescheduled, and Reduced) and guiding principles to develop your cost-reduction roadmap.

Research & Tools

1. Start here – read the Storyboard

Read our concise Executive Brief to find out how you can reduce your IT cost in the short term while establishing a foundation for long-term sustainment of IT cost containment.

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Search Code: 92046
Published: March 31, 2020
Last Revised: March 31, 2020

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