Exceeding Your Budget? Ten Tips for Optimizing Costs

While many companies face significant hurdles due to the pandemic digital disruption and work-from-home, digital services continue to grow exponentially. Thus, executives are under immense pressure to find new ways to digitize, innovate and implement technologies to optimize costs. With these pressures in play, it is easy to make errors that negatively affect development. For instance, setting unrealistic cost reduction targets or investing in too many new areas at once. Therefore, business leaders need to understand and avoid these mistakes and chart a plan for digital innovation that helps businesses increase their bottom line while reducing costs. This article at Gartner by Laurence Goasduff speaks about ten IT cost optimization techniques for the public and private sectors.

Cost Optimization Is Not as Arduous as It Seems

Change does not need to be complex. You can simplify it by taking small steps and breaking down each task. Similarly, leaders must identify the cost drivers and evaluate their impact on other business units and revenue to reduce costs. According to Irma Fabular, Senior Director Analyst, Gartner, “CIOs who have successfully optimized IT costs have teamed with other C-suite executives, particularly the CFO, to collaborate in enterprise cost optimization initiatives.”

Ten Tips for Optimizing Costs

Leverage IT shared services for all business units. This will reduce your spending from 15% to 25% in 18 to 36 months.Opt for the cloud transition. Doing so will allow your business to take advantage of cloud infrastructure and services.Focus on data center modernization and consolidation efforts.Standardize and rationalize the application portfolio as it is a large part of the IT budget and save from 15% to 20%.Establish transparency in IT spending to identify pain points and optimize costs.Optimize your IT capabilities based on requirements and demand to reduce operational costs.Take advantage of automation and advanced analytics to identify emerging trends and make strategic decisions.Leverage the corporate IT governance approach to track technology assets instead of tracking individual assets. This will reduce costs by 10% to 20%.Have an inclusive discussion with all stakeholders to optimize cost and accelerate IT capabilities. This will enhance visibility into BU IT expenditures and eliminate redundant IT expenses.Implement advanced augmentation capabilities and automation for repetitive activities and optimize workforce capacity.

To read the original article, click on https://www.gartner.com/smarterwithgartner/10-it-cost-optimization-techniques-for-private-and-public-sector-organizations

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