Consolidate Service Management to Drive IT Cost Optimization

Embrace a big picture approach to move beyond cost reduction.


Your Challenge

  • The Great Recession put IT leaders in a mode of frenzied cost cutting. As the recovery dragged along, IT budgets flattened and have recently increased only slowly.
  • IT leaders need to optimize costs and maintain competitiveness while preserving the organization’s ability to capitalize on a potential market upswing.
  • Having exhausted many of the conventional cost reduction tactics over the past several years, IT leaders have few options left for continued cost improvement.

Our Advice

Critical Insight

  • User classification opens the door to service tiering through identification of the real opportunities for service differentiation in the organization. It establishes a reasonable basis for multiple service tiers that goes beyond simply providing better service to the most vocal users.
  • Spikes in demand for different IT services do not normally occur at the same time. Share resources across services to reduce the capacity you need to allocate up-front.
  • Opening up resource purchase decisions to competitive bidding will not always bring you the strongest vendor options. Try to build multi-service vendor relationships with vendors who can cater to your user classes.

Impact and Result

  • Reduce costs while maintaining the ability to compete.
  • Plan to optimize not just your current level of expenditure but also expenditures foreseeable down the road.

Contributors

  • Milwaukee Health Department
  • Saskatoon Health Region
  • WR Starkey Mortgage
  • An additional ten companies contributed to this research. Due to the sensitivity of the information, their identities will be kept confidential.

Get the Complete Storyboard

See how all the steps you need to take come together, with tools and advice to help with each task on your list.

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Get to Action

  1. Build a strategy for optimizing IT costs

    Reduce expenses while aligning services to user needs.

  2. Learn about cost optimization

    Build a plan for cost optimization.

  3. Survey your user base for usage characteristics

    Drive user classification.

  4. Classify your user base

    Derive appropriate tiers for user services.

  5. Plan capacity across user classes and services

    Reduce the amount of resource you purchase.

  6. Identify opportunities for multi-vendor relationships

    Build relationships with vendors that can support your user classes.

  7. Prioritize your cost optimization efforts

    Start with the low-hanging cost optimization fruit.

Guided Implementation Icon Talk to an Analyst

Our analyst calls are focused on helping our members use the research we produce, and our experts will guide you to successful project completion.

  • Book an Analyst Call on this topic. You can start as early as tomorrow morning. Our analysts will explain the process in your first call.
  • Get advice from a subject matter expert. Each call will focus on explaining the material and helping you to plan your project, interpret and analyze the results of each project step, and setting the direction for your next project step.

Schedule Your First Call


2 Comments

  • Missing comment
    Kevin Hohnbaum | 12-23-2014

    the "download all" link is broken

    • 432c05244a845caaca3b276adb15a11e comment
      Info-Tech Research Group | 01-12-2015

      The link seems to be working on our end. If you continue to experience issues, please contact your account representative.

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