Gartner Research

Avoid Dangerous Cost-Cutting Traps, and Embrace Gartner's Cost Optimization Approach

Published: 19 August 2016

ID: G00313682

Analyst(s): Cassio Dreyfuss, John P. Roberts

Summary

Pressure from an unstable and uncertain business and economic environment has led CIOs to embark, often blindly, on emergency cost-cutting programs. But the savings can be less than satisfying and the impacts on the business can be negative. This research shows how to avoid those traps.

Table Of Contents

Analysis

  • Start Building Business Cases for Savings
  • Cost-Cutting Trap No. 1: Be Nice to Everybody
    • Linear Cuts Everywhere
    • Wall-to-Wall Directives
  • Cost-Cutting Trap No. 2: People Are Expensive and Visible
    • Cutting Down Volume
    • Cutting Off Capabilities
  • Cost-Cutting Trap No. 3: Focus on Urgent Problems and Forget the Rest
    • One Hundred Percent Plain Vanilla
    • No Long-Term Payback
  • Cost-Cutting Trap No. 4: It's Not My Problem
    • Switch for Savings
    • Squeeze the Last Cents Out
  • Cost-Cutting Trap No. 5: It's "Every Man for Himself"
    • Solve Your Own Problem
    • Ignore Hardly Quantifiable Risks Outside Your Area
  • Gartner's Cost Optimization Approach
    • Cost Optimization Possibilities

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