Minimize the Damage of IT Cost Cuts

Average growth rates for Opex and Capex budgets are expected to continue to decline over the next fiscal year.
Common “quick-win” cost-cutting initiatives are not enough to satisfy the organization’s mandate.
Cost-cutting initiatives often take longer than expected, failing to provide cost savings before the organization’s deadline.
Cost-optimization projects often have unanticipated consequences that offset potential cost savings and result in business dissatisfaction.

Our Advice

Critical Insight

IT costs affect the entire business, not just IT. For this reason, IT must work with the business collaboratively to convey the full implications of IT cost cuts.
Avoid making all your cuts at once; phase your cuts by taking into account the magnitude and urgency of your cuts and avoid unintended consequences.
Don’t be afraid to completely cut a service if it should not be delivered in the first place.

Impact and Result

Take a value-based approach to cost optimization.
Reduce IT spend while continuing to deliver the most important services.
Involve the business in the cost-cutting process.
Develop a plan for cost cutting that avoids unintended interruptions to the business.

Minimize the Damage of IT Cost Cuts Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out why you should take a value-based approach to cutting IT costs, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

Minimize the Damage of IT Cost Cuts – Executive Brief

1. Understand the mandate and take immediate action

Determine your approach for cutting costs.

2. Select cost-cutting initiatives

Identify the cost-cutting initiatives and design your roadmap.

3. Get approval for your cost-cutting plan and adopt change management best practices

Communicate your roadmap to the business and attain approval.

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.

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.

Table of Contents

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Guided Implementation 1: Understand the mandate and take immediate action

Call 1: Start cost-cutting project and determine the cost-cutting stance.
Call 2: Decide on quick wins for the project and determine how to report progress to Finance.

Guided Implementation 2: Select cost-cutting initiatives

Call 1: Decide on how to determine initiatives for cost cutting.
Call 2: Review cost-cutting initiatives and select those to be put on a roadmap.