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Shift the Budget From IT Maintenance Toward IT Enhancements

Reduce operational spending without adversely impacting performance.

  • 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

Our Advice

Critical Insight

  • 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

Shift the Budget From IT Maintenance Toward IT Enhancements Research & Tools

1. Start identifying opportunities for IT maintenance cost reductions

2. Effectively negotiate vendor contracts

3. Reallocate budget to IT enhancements

About Info-Tech

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Geoff Nielson

Search Code: 48802
Last Revised: October 31, 2011

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