Gucer Audit and Consulting
Gucer Audit and Consulting
Avoid Starting From Scratch by Leveraging Best Practices

Minimize the Damage of IT Cost Cuts

01.07.20 08:36 PM Comment(s) By BURAK GUCER

When IT cuts costs, everyone feels it.

Your Challenge

  • Average growth rates for Opex and Capex budgets are expected to continue to decline over the next fiscal year.

  • Common “quick-win” cost-cutting initiatives are not enough to satisfy the organization’s mandate.
  • Cost-cutting initiatives often take longer than expected, failing to provide cost savings before the organization’s deadline.
  • Cost-optimization projects often have unanticipated consequences that offset potential cost savings and result in business dissatisfaction.

Our Advice

Critical Insight

  • IT costs affect the entire business, not just IT. For this reason, IT must work with the business collaboratively to convey the full implications of IT cost cuts.
  • Avoid making all your cuts at once; phase your cuts by taking into account the magnitude and urgency of your cuts and avoid unintended consequences.
  • Don’t be afraid to completely cut a service if it should not be delivered in the first place

Impact and Result

  • Take a value-based approach to cost optimization.
  • Reduce IT spend while continuing to deliver the most important services.
  • Involve the business in the cost-cutting process.
  • Develop a plan for cost cutting that avoids unintended interruptions to the business.
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