- The cost of delivering the same ongoing services typically consumes 85% of IT budgets, leaving little capacity for enhancements to business value.
- Shifts of the IT budget away from existing services, while difficult, can significantly increase capacity for IT enhancement.
Return to Manage IT in Turbulent Times
- More than 50% of organizations have realized the greatest cost reduction pay-offs from renegotiating vendor /outsourcer contracts and optimizing business processes.
- Start looking for opportunities to optimize current maintenance processes instead of cancelling new projects.
- Think of the exercise as reallocation NOT budget cuts – any savings should be funneled into new technologies and business analysis.
Impact and Result
- Adapt to the business model changing suddenly and unpredictably
- Adopt new technologies (e.g. mobile, social) and develop new strategies
- Respond to an increase in client & staff demand and sophistication
- Think strategically: You can't cut your way to success, and the status quo is expensive