Gartner Research

How to Respond to Mandatory IT Budget Cuts

Published: 18 November 2019

Summary

CIOs face constant pressure to reduce cost while maintaining or improving performance. This often comes in the form of a direct cost challenge, with a specific target and time frame. CIOs must follow a structured approach to identify, evaluate and communicate cost-saving trade-offs to stakeholders.

Included in Full Research

  • Key Challenges
  • Define Scope: Understand the Question
  • Organize and Baseline: Create Transparency in the Cost Base, Provide Multiple Views of the IT Budget
    • Organize the Cost Base
    • Compare Cost Baseline With Peers to Enable Gap Analysis
  • Identify Opportunities: Expose and Evaluate Actionable Cost Saving Options
    • Generate a Comprehensive List of Opportunities
    • Iteration 1: Reduce the List to Relevant Options
    • Iteration 2: Plot High-Level Time Versus Saving
    • Iteration 3: More In-Depth Risk Assessment
    • Iteration 4: Reduce to a Small, Actionable Number of Ideas
  • Plan and Communicate: Create an Action Plan and Ensure Stakeholder Buy-In
    • Describe Risks in Business Terms
    • Gain Stakeholder Buy-In
    • Execute and Communicate Results

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