IT Cost Optimization

Are you a facilitator of competitive advantage or just a cost center?

IT cost optimization isn't just about cutting costs — it's about spending more on items that maximize the value IT delivers to your business – and less on things that don't. How will you re-prioritize your spend to better run, grow and transform your business?

IT Cost Optimization

Key Challenges in IT Cost Optimization

  • Overview
  • Governance
  • IT Budgets
  • IT Cost Transparency
  • IT cost optimization forces you to wrestle with three key challenges:


    Are you running your IT organization like a business? If you're not, you should be. You need to control IT costs and transform your business at the same time. So, where are you investing for growth?

    IT Budgets:

    Budget pressures continue in 2016. Is there a right way to cut costs? You need to deliver more productivity with fewer resources and provide more cost savings. What savings will your organization deliver?

    IT Cost Transparency:

    You need to improve your level of IT transparency, yet too much transparency will cause needless questioning. How much is enough?

  • You need effective governance processes to control IT costs, optimize decision making and prioritize IT investments. How does your IT organization need to change and adapt?

    Best Practices:

    What are proven practices to optimize IT spend? How do you prioritize your IT spending? You'll need to balance long-term imperatives with pressing short-term demands.


    How will you mitigate the risks of traditional IT cost optimization practices? You need to explore new strategic levers while maintaining an eye on future growth.


    Are you engaging the business? Are you ready to effectively leverage technology across the enterprise?

  • You need to constantly justify your IT budget levels and support increased demand for IT services. Are you ready to manage cost cutting as an ongoing discipline? Who is running IT cost optimization in your organization?


    A key ingredient to cost transparency is benchmarking. Does your IT budgeting process include benchmarking? Will you use benchmarking to sustain larger changes? And where do you stack up?

    Shared Services:

    Will shared services result in higher IT costs or allow you to cut costs? How will you standardize to cut IT costs?

    Cost Savings in IT:

    You need to identify new opportunities to reduce IT costs. What will you do differently? How are you reducing cost by IT domain? Should you rationalize your application portfolio?

    IT Procurement:

    Are you getting the best prices and terms for your IT purchases?

  • You need to make strategic shifts to make your cost structure more transparent. Are you ready to adapt new management practices to manage your IT environment better?


    They say accountability is more important than cutting costs. Are you setting targets for accountability? How are you holding your team and others accountable for delivering savings?

    IT Performance Management:

    How will you measure performance? What scorecards and KPIs do you use to track your success?

    IT Service Portfolio:

    What IT services will you offer? Do you need to shut off any IT services in your portfolio?


Through 2015, at least 70% of enterprises will have the potential to reduce their I&O costs by 25% or more.

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