- 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.
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.
Client
Experience
Impact
$ Saved
Days Saved
Bapco
Guided Implementation
8/10
$11,305
10
Demand and Supply calculator
The Abramson Center for Jewish Life
Guided Implementation
10/10
N/A
N/A
Bets: Sydney was very understanding and experienced in my situation. He provided me a good amount of helpful information. Thank you for the assis... Read More
Grainger
Guided Implementation
10/10
N/A
N/A
Varian Medical Systems, Inc.
Guided Implementation
10/10
$29,923
5
Very informative and great personal experience in this area. I really appreciate the candor of your analysts.
Cloetta Sverige ab
Guided Implementation
8/10
N/A
N/A
Workshop: Minimize the Damage of IT Cost Cuts
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 the Mandate and Take Immediate Action
The Purpose
- Determine your cost-optimization stance.
- Build momentum with quick wins.
Key Benefits Achieved
- Understand the internal and external drivers behind your cost-cutting mandate and the types of initiatives that align with it.
Activities
Outputs
Develop SMART project metrics.
Dissect the mandate.
- Project metrics and mandate documentation
Identify your cost-cutting stance.
Select and implement quick wins.
- List of quick-win initiatives
Plan to report progress to Finance.
Module 2: Select Cost-Cutting Initiatives
The Purpose
- Create the plan for your cost-cutting initiatives.
Key Benefits Achieved
- Choose the correct initiatives for your roadmap.
- Create a sensible and intelligent roadmap for the cost-cutting initiatives.
Activities
Outputs
Identify cost-cutting initiatives.
- High-level cost-cutting initiatives
Select initiatives.
Build a roadmap.
- Cost-cutting roadmap
Module 3: Get Approval for Your Cost-Cutting Plan and Adopt Change Management Best Practices
The Purpose
- Finalize the cost-cutting plan and present it to the business.
Key Benefits Achieved
- Attain engagement with key stakeholders.
Activities
Outputs
Customize your cost-cutting plan.
- Cost-cutting plan
Create stakeholder engagement plans.
- Stakeholder engagement plan
Monitor cost savings.
- Cost-monitoring plan