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


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


  • 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

Gartner Recommended Reading

©2021 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client

Learn how to access this content as a Gartner client.