Most IT organizations have already taken steps to reduce their 2009 budgets. As the business climate continues to become more challenging, it
is likely that they will need to identify and deliver even more reductions. Other companies have cut so deeply that they risk delivering service
levels that are required to adequately support the business. Our IT Cost Reduction offering gives our clients a proven approach for delivering
required IT services as cost effectively as possible. We also focus on ensuring that planned IT cost reduction opportunities are fully monetized
and deliver the forecasted savings.
IT Cost Reduction Service
• IT Spending and Staffing baselines
• IT Project Portfolio review
• Assessment of current cost reduction plans and projects, including recommendations
• Opportunities for additional IT cost reduction
• Preliminary IT Spending Targets
• Charter, Work Plan and Staffing Plan for the Opportunity Analysis and Planning phase
• Executive education on the Financial Dynamics of IT and the results of the IT Cost Reduction Calibration Phase
The IT Cost Reduction offering provides a "Play Book" process that leverages its three phases to help clients develop and execute strategies for
effective, sustainable IT cost reduction. The "Play Book" process and key deliverables are outlined below:
CIO, COO, CFO
In our review of how companies reduce IT costs, we have determined that there are many strategies that organizations can apply, ranging from
simple "Expense Reduction" actions (e.g., eliminate travel, training, consultants, etc.) to significant "Cost Restructuring" initiatives. The
opportunities that will be viable for each organization will be a function of several factors:
IT Cost Reduction Calibration Phase
• Their business and IT strategies
• Current IT architecture and capabilities
• Cost reduction targets and timeframe
• What has already been accomplished
• Their ability to invest money to reap additional savings
The "Expense Reduction" strategies are the first type of actions that most companies take, but they are often not sustainable. We assist our
clients in tackling the more impactful "Cost Restructuring" strategies such as improved demand management, structural cost transformation,
and lean IT to name a few.
Our experienced consultants have identified and delivered dramatic reductions in costs for large and small IT organizations in a variety of
industries. Based on this experience we have developed an effective, comprehensive approach to IT Cost Reduction that will help you quickly
identify additional opportunities to reduce IT spending, and then help you define and execute the projects that will be required to actually
achieve the target savings.
During the IT Cost Reduction Calibration phase, we work with our clients to analyze their current and projected IT spending, understand the
cost reduction actions that have already been taken and are underway and assess the approach you are taking to manage the actions to
deliver committed cost reductions. We will then identify and size additional potential IT cost reduction opportunities and work with you to set
revised overall cost reduction targets.
• Cost Reduction results!
• Project Management Reports (Budget, Schedule, Issues, Risks, etc.)
• Key Metric Tracking
• Benefits Reporting
• - Benefits Delivered
• - Risk Adjusted Benefit Projection
Cost Reduction Program Execution
It is one thing to identify cost reduction opportunities and set targets. It is more difficult to actually deliver and measure the savings. We work
with our clients to manage and guide their teams in executing the IT cost reduction programs.
IT executives and senior management who are responsible for the IT function and for corporate budgets and spending. Our process will assure
them that their IT investments deliver value as efficiently and effectively as possible. It will also improve alignment between the IT function
and the business by developing a shared understanding of the drivers of IT costs and the sources and uses of IT spending. Our approach
requires that the business partners with IT in identifying and prioritizing the optimal cost reduction opportunities and resulting service levels.
Performance Management and Measurement Services
IT Cost Reduction Service