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IT Cost Optimization in Recessionary Times

A recession is looming. The result? You may be asked to cut costs … and to do it right now.

  • The widely predicted recession is already pushing many organizations across multiple industries to the breaking point.
  • CEOs and CFOs are thinking more about survival than growth, which will force a round of cost cutting across all departments to create short-term, immediate, and measurable impact.
  • Many IT departments will be hard pressed to meet cost-cutting targets at short notice. Combined with uncertainty about the extent of the recession to come, it’s difficult to know if planned cuts are going to be deep enough and whether they could hurt more than they help.

Our Advice

Critical Insight

  • Your IT organization must respond immediately. The secret to success in a recessionary crisis will be to find the reactive, short-term options that have the least negative impact on your long-term business and IT strategic objectives.
  • You will be forced to make hurried decisions. You need an accelerated approach to keep you focused and avoid short-term mistakes that could have long-term consequences.
  • Crises pass and you need to consider how to recover from short-term cost-cutting measures. When planning cost reductions in the near term, you must consider how you will recover and succeed in the long term.

Impact and Result

  • Info-Tech’s methodology helps you build an action-oriented cost optimization roadmap and communication plan based on your specific circumstances and timeline focus.
  • Info-Tech’s four broad IT cost optimization categories – vendor management, asset optimization, project prioritization, and workforce optimization – will help you focus in on specific, business-aligned cost optimization opportunities.
  • The approach and deliverables in this research will help you effectively respond to the recessionary crisis while also helping you to set IT spending goals for recovery and expansion.

IT Cost Optimization in Recessionary Times Research & Tools

1. IT Cost Optimization in Recessionary Times – A step-by-step cost optimization methodology that helps effectively respond to the recessionary crisis while also setting IT spending goals for recovery and expansion.

Use our accelerated three-step approach optimized for recession response to set realistic goals, determine the right cost optimization initiatives, and prepare an effective action plan.


Member Testimonials

After each Info-Tech experience, we ask our members to quantify the real-time savings, monetary impact, and project improvements our research helped them achieve. See our top member experiences for this blueprint and what our clients have to say.

8.9/10


Overall Impact

$69,662


Average $ Saved

6


Average Days Saved

Client

Experience

Impact

$ Saved

Days Saved

Maverick Tube Corporation

Guided Implementation

6/10

N/A

N/A

Eastern Michigan University

Guided Implementation

10/10

N/A

5

Parsons Transportation Group Inc

Guided Implementation

10/10

$68,199

2

ACS Ventures Inc.

Guided Implementation

8/10

$27,500

10

Targus International LLC

Guided Implementation

9/10

$247K

10

Pinellas County Clerk of Court

Guided Implementation

10/10

$2,479

5

Crystal Flash Inc

Guided Implementation

9/10

N/A

N/A

CRITICAL Software

Guided Implementation

9/10

$2,216

4


Workshop: IT Cost Optimization in Recessionary Times

Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

Module 1: Understand Your Mandate & Objectives

The Purpose

  • Determine your organization’s current context and its cost optimization objectives, IT’s required response mode, and the set of IT cost optimization goals.

Key Benefits Achieved

  • A business-aligned set of specific IT cost optimization goals.

Activities

Outputs

1.1

Understand your organization’s cost optimization objectives and how this impacts IT.

  • Organizational placement on Info-Tech’s Business Cycle Framework
1.2

Review potential cost optimization target areas based on your ITFM Benchmarking Report.

1.3

Identify factors constraining cost optimization options.

1.4

Set concrete IT cost optimization goals.

  • IT cost optimization goals
1.5

Identify inputs required for decision making.

Module 2: Outline Initiatives for Vendors & Assets

The Purpose

  • Create a longlist of potential cost optimization initiatives focused on vendor management and asset optimization.

Key Benefits Achieved

  • A comprehensive list of potential vendor- and asset-focused initiatives that includes details of their impacts

Activities

Outputs

2.1

Identify a longlist of possible initiatives around vendor contract renegotiation, cancelation, etc., and asset lifecycle management, investment deferral, repurposing, etc.

2.2

Estimate the business impact and risk profile of cost optimization initiatives.

  • Longlist of potential vendor management and asset optimization IT cost optimization initiatives

Module 3: Outline Initiatives for Projects & Workforce

The Purpose

  • Create a longlist of potential cost optimization initiatives focused on project prioritization and workforce optimization.

Key Benefits Achieved

  • A comprehensive list of potential project- and workforce-focused initiatives that includes details of their impacts

Activities

Outputs

3.1

Identify a longlist of possible initiatives around project priorities, project backlog reduction, project intake restructuring, etc., and workforce productivity, skills, redeployment, etc.

3.2

Estimate the business impact and risk profile of cost-optimization initiatives.

  • Longlist of potential project prioritization and workforce optimization IT cost optimization initiatives

Module 4: Develop an IT Cost Optimization Roadmap

The Purpose

  • Develop a visual IT cost optimization roadmap.

Key Benefits Achieved

  • A prioritized, business-aligned IT cost optimization roadmap

Activities

Outputs

4.1

Assess feasibility of each initiative given cost optimization goals.

4.2

Prioritize cost optimization initiatives to create a final shortlist.

4.3

Fine-tune key information about your final cost optimization initiatives and develop a cost optimization roadmap for proposal.

  • IT Cost Optimization Roadmap

Module 5: Communicate & Execute

The Purpose

  • Develop an IT cost optimization roadmap communication plan and executive presentation.

Key Benefits Achieved

  • A boardroom-ready set of communication materials for gaining buy-in and support for your IT cost optimization roadmap

Activities

Outputs

5.1

Outline components of a communication plan, including approvers, stakeholders, and governance and management mechanisms to be used.

  • IT Cost Optimization Communication Plan
5.2

Create an executive presentation.

  • IT Cost Optimization Executive Presentation
5.3

Set up review time for workshop deliverables and post-workshop activities.

About Info-Tech

Info-Tech Research Group is the world’s fastest-growing information technology research and advisory company, proudly serving over 30,000 IT professionals.

We produce unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely, and well-informed decisions. We partner closely with IT teams to provide everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.

Member Rating

8.9/10
Overall Impact

$69,662
Average $ Saved

6
Average Days Saved

After each Info-Tech experience, we ask our members to quantify the real-time savings, monetary impact, and project improvements our research helped them achieve.

Read what our members are saying

What Is a Blueprint?

A blueprint is designed to be a roadmap, containing a methodology and the tools and templates you need to solve your IT problems.

Each blueprint can be accompanied by a Guided Implementation that provides you access to our world-class analysts to help you get through the project.

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Authors

Jennifer Perrier

Graham Price

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