The 25 Ways to Cut IT Spend List

By Chris Gonsalves Print this article Print

Gartner says IT ‘industrialization’ is an opportunity to reduce IT costs and curtail wasteful spending.


According to Gartner, here are the best ways to find IT savings:

1) Initially focus on cutting “people costs.” Freeze headcount, reduce/eliminate special bonuses, reduce regional support.

2) Flatten organization structure. Move to collaborative team-based models and change span of control assumptions: For example, change the management to staff ratio from 1 to 7 to 1 to 20.

3) Accelerate the progress of centralized and shared services. Leverage enterprisewide competencies by reducing staff members embedded in business units.

4) Bring a qualified finance person onto your IT leadership team, either on loan or on a temporary contract.

5) Maintain or strengthen relationship management roles, such as business analysts, business process and industry experts, account executives and relationship managers

6) Take control of “unmanaged” costs you can measure and cut easily, such as data center power consumption and printing.

7) Use invoice verification.

8) Eliminate unused software/modules.

9) Apply more sophisticated negotiations.

10) Use alternative products included in previous deals.

This article was originally published on 2008-04-08
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